Home > Resources > Articles > Path to Recovery: Aviation Trends to Expect in the Next Five Years

Path to Recovery: Aviation Trends to Expect in the Next Five Years

Anusree Bhattacharya | August 31, 2021 | 485 views

Is the aviation industry finally reviving after the devastating 2020? If yes, then what will it show in the next five years?

2020 will be remembered in airline history as the most turbulent year to date. Due to the pandemic, the period brought massive changes in the airline industry—business models and customer behavior globally. As a result, regaining customer confidence and reforming business models have become a critical factor for airlines to uncloud the economic storm and remain a formidable competitor in the years of uncertainty ahead.

Technologies that were being used before the pandemic are now being studied well with vividness. The inclusion of new technologies is onboarding, which somehow sets up new aviation industry trends. These will be a timely solution to fight the ongoing economic instability and challenges pouring in.

To increase safety notions, boost business confidence, customer trust, and making airline operations more efficient, adaptability and high intelligent business outline is the new blueprint for survival and growth to happen in the next five years.


Drivers of Emerging Trends

The intention of emerging trends in the airline industry is from weak signals from a wide range of fields, including threats, technology, and potentiality to function remotely, impacting the industry’s all-over operational dynamics.

The trends are setting primarily due to the winds of change pounding the industry from different directions. Be it from technological, demographical to environmental shifts. Understanding the potential business landscape is therefore critical to ensure what the future of air travel will be.

During a study conducted by IATA, business leaders in the airline industry identified the most critical drivers of emerging trends that were probable to have an influential impact by 2035. Also, these drivers suggest bringing more and more opportunities in business models and operational models of the industry beyond 2020.

Therefore, it is the hope of all airline companies (you) that how you will be affected by future developments and how the entire business landscape will be changed by the trends discussed here. So, take advantage of the opportunities that some of these trends may give rise to.


Leading Aviation Trends to Expect

Cybersecurity

Today, the importance of cybersecurity technology in the airline industry is rising. Airlines, now being aware of the downsides of using traditional operational models, is becoming more concerned about delivering high-performance using technology.

With having well-operated cybersecurity functionality onboard, airlines are focusing on becoming more agile to scale their infrastructure. Also, in the next five years, increased connectivity between the real and virtual world, including robots, will eventually end the boundaries between virtual and physical security.

IATA’s research with the London School of Economics found that the aviation industry will invest $15 billion by 2035, thanks to connected operations.

Moreover, as cybersecurity matures, it will be seen as the most secure and scalable way of operating organizational data, and processing will be easier than before. You will have your airline documents within a secured centralized database, which will reduce silos of information that pose security risks and threats.


Biometric Technology

The pandemic, apart from bringing challenges, has helped businesses to leverage influential ideas to foster. Yes, it has made the airline industry emphasize the high usage of biometrics as a must-have technology stack. Biometrics is on the rise that can reinforce the idea of touchless operations in airports.

The airline industry forecast has laid primary focus on self-service. However, as the blend of software and technology is more in demand, applications will be more defined than before in the coming five years. The technology will allow automated checks, self-service systems using devices like mobile, tablets, and others and cover iris, face recognition, fingerprint, which will even work with PPE masks.

The industry is already making great experiences that allow businesses to conduct frictionless operations using biometric software and hardware. For example, in November 2020, Star Alliance introduced a novel interoperable biometric identity scanner platform for screening employees and passengers at airports.


AI & Big Data

Artificial Intelligence (AI) welcomed massive opportunities in transforming aviation business operations amid the ongoing crisis. This technology in the airline industry has immensely aided companies in collecting data and forming a virtual assistance environment for queries, enhanced logistics operation, security, and self-services with highly augmented reality.

A market survey reveals that 97.2% of the aviation companies are installing big data and AI together. In fact, 76.5% of airline companies are gaining the value of data collection with the help of big data and AI. Source: resources.vistair.com

AI is also being set up in terms of safety improvement initiatives and potential safety issues. In this case, Southwest Airlines partnered with NASA to build an automated system capable of preventing potential threats and breaches by using machine-learning algorithms.


Green Technology

Green technology is one of the upcoming trends in the airline industry in the next five years. The prediction is it will make novel changes in the airline industry from various directions like the workforce, shares, stakeholders, and governments.

In the green tech concept, it is the generational shift and advancement that may head the change using new tools. These would bring in notable opportunities beyond 2021.

If you observe, the pandemic has driven the agenda of sustainability in terms of climatic conditions. And you will be surprised to know that aviation has already put up a serious concern in its fossil fuel usage by 2035. Even aircraft manufacturers have begun their journey with green technology.

To clarify this, the main objective of sustainable development for the coming years is decarbonization and green technology investment. 

Aviation companies like Japan Airlines and IAG are investing to bring net-zero carbon emissions by 2050, and by 2045, they aim to achieve carbon neutrality. And these, of course, are happening quickly due to digitalization.


Expecting a Sustainable ‘DIGI-TECH’ Future

As the pandemic brought downturn and slowdown in the airline industry, they have prioritized investing in digital by recognizing its importance and the optimum necessity. It is because it will be one of the significant ways for you to bring customers back and show your potential to endeavor services in a changing industry landscape.

So, technology and digital together must be supported that respects businesses’ need to invest in multiple areas of functionality. On the other side, revenue management goals also need to be focused on to gain success among competitors. And following the path of trending digital platforms will make you victorious over revenue management performance objectives. In this way, you will be in the skin of the game and would observe your company rising through the challenges over the coming years.


Frequently Asked Questions


What are the topmost technologies that will define aviation beyond 2021?

The technologies—3D printing in manufacturing, automation, and robotics are the topmost that will define how the aviation industry will be beyond 2021.


How is technology being used in aviation?

Airline operators use technology to market their services and products, advancing their software to leverage functionalities like biometrics, automation, cybersecurity, AI, big data, and more. Also, technology is being used to make safer airport operations like touchless checks to make safe for passengers.


Will the aviation industry overcome challenges?

Up until now, globally, the aviation industry is maintaining positive growth, despite prevailing challenges due to COVID-19. Technologically, it seems that the industry will foster slowly and gradually. Yet, there is sluggish growth economically due to high jet fuel prices.

Spotlight

Rockwell Collins

Rockwell Collins is a leader in aviation and high-integrity solutions for commercial and military customers around the world. Every day we help pilots safely and reliably navigate to the far corners of the earth; keep warfighters aware and informed in battle; deliver millions of messages for airlines and airports; and help passengers stay connected and comfortable throughout their journey.

OTHER ARTICLES
Aviation Technology

What 2019 Taught Us About the U.S. Airline Industry

Article | September 3, 2021

For U.S. airlines, the fourth earnings season is now complete. And as is customary these days, all players produced solid profits. Collectively, Delta, American, United, Southwest, Alaska, JetBlue, Hawaiian, Spirit, and Allegiant reached a double-digit operating margin, topping 10 percent on nearly $46 billion in revenues. For all of 2019, they earned 11 percent on $184 billion. The year before: 10 percent on $175 billion. No other country has an airline industry so stable and profitable. What were the highlights of the final quarter of the final year of the decade? Here’s a review:

Read More
Aviation Technology

What’s Interesting About 2019’s Busiest International Routes?

Article | July 26, 2022

Have you ever thought about which routes around the world see the most traffic? What would your guesses be? Every year, the organization OAG (Official Airline Guide) puts out a publication detailing the world’s busiest routes. Their 2019 report had some interesting findings. Here’s what it revealed.

Read More
Aviation Technology

Why The Airbus A220 Is The Plane Of The Future

Article | December 3, 2021

The Airbus A220 isn’t really a new aircraft. Bombardier first flew the CSeries in September 2013, with its entry into service in July 2016. And yet, the A220 seems to be answering problems that we’re not quite having yet. Airbus predicts a need for 7,000 A220s over the next two decades, and that’s probably not too overoptimistic. Here’s how the A220 is the plane of the future, today. The landscape of aviation is changing. In the past, airlines operated on hub and spoke models, passengers were happy to fit around schedules and the price of jet fuel was so low that efficiency wasn’t a huge consideration. Clearly, aviation today is very different.

Read More

Why Does Aegean Want To Buy Croatia Airlines?

Article | February 10, 2020

Croatia Airlines is on sale, and Aegean Airlines expressed an interest to buy it. Why did the Greek flag carrier do this, and what plans could it have for Croatia Airlines? For several years now, the government of Croatia has been trying to sell Croatia Airlines. The national airline is loss-making and has not launched a single new route in 2019.

Read More
Aviation Technology

Analytics is Changing: How can Marketers win Airline Marketing with it?

Article | September 3, 2021

For U.S. airlines, the fourth earnings season is now complete. And as is customary these days, all players produced solid profits. Collectively, Delta, American, United, Southwest, Alaska, JetBlue, Hawaiian, Spirit, and Allegiant reached a double-digit operating margin, topping 10 percent on nearly $46 billion in revenues. For all of 2019, they earned 11 percent on $184 billion. The year before: 10 percent on $175 billion. No other country has an airline industry so stable and profitable. What were the highlights of the final quarter of the final year of the decade? Here’s a review:

Read More
Aviation Technology

AI in Aviation: What’s the Word?

Article | July 26, 2022

Have you ever thought about which routes around the world see the most traffic? What would your guesses be? Every year, the organization OAG (Official Airline Guide) puts out a publication detailing the world’s busiest routes. Their 2019 report had some interesting findings. Here’s what it revealed.

Read More
Aviation Technology

AI-Powered Ingredients to Enhance Airline Customer Experience in 2022

Article | December 3, 2021

The Airbus A220 isn’t really a new aircraft. Bombardier first flew the CSeries in September 2013, with its entry into service in July 2016. And yet, the A220 seems to be answering problems that we’re not quite having yet. Airbus predicts a need for 7,000 A220s over the next two decades, and that’s probably not too overoptimistic. Here’s how the A220 is the plane of the future, today. The landscape of aviation is changing. In the past, airlines operated on hub and spoke models, passengers were happy to fit around schedules and the price of jet fuel was so low that efficiency wasn’t a huge consideration. Clearly, aviation today is very different.

Read More

Why Does Aegean Want To Buy Croatia Airlines?

Article | February 10, 2020

Croatia Airlines is on sale, and Aegean Airlines expressed an interest to buy it. Why did the Greek flag carrier do this, and what plans could it have for Croatia Airlines? For several years now, the government of Croatia has been trying to sell Croatia Airlines. The national airline is loss-making and has not launched a single new route in 2019.

Read More
MORE ARTICLES

Spotlight

Rockwell Collins

Rockwell Collins is a leader in aviation and high-integrity solutions for commercial and military customers around the world. Every day we help pilots safely and reliably navigate to the far corners of the earth; keep warfighters aware and informed in battle; deliver millions of messages for airlines and airports; and help passengers stay connected and comfortable throughout their journey.

Related News

Aviation Technology

Airbus, Barclays Sustainable Impact Capital and NEOM co-lead ZeroAvia's latest financing round

ZeroAvia | September 21, 2023

ZeroAvia today announced that Airbus, Barclays Sustainable Impact Capital and NEOM have co-led the company's latest financing round. Breakthrough Energy Ventures, Horizons Ventures, Alaska Airlines, Ecosystem Integrity Fund, Summa Equity, AP Ventures and Amazon Climate Pledge Fund have also participated in the investment. This investment will enable ZeroAvia to accelerate progress towards certification of its first engine as well as delivering the company's mission of a hydrogen-electric engine in every aircraft. In conjunction with the investment, Airbus and ZeroAvia have agreed to collaborate on certification approaches for hydrogen power systems. The companies also intend to work together on a number of critical technical areas, including liquid hydrogen fuel storage, flight and ground testing of fuel cell propulsion systems, and development of hydrogen refueling infrastructure and operations. ZeroAvia is pursuing hydrogen-electric propulsion systems as the most environmentally friendly and economically attractive solution to aviation's growing climate change impact. The company's hydrogen-electric engines use hydrogen in fuel cells to generate electricity, which is then used to power electric motors to turn the aircraft's propellers, with the only byproduct during flight being water. Airbus is a global leader in fostering alternative propulsion using hydrogen. Fuel cell systems are an important part of its ZEROe aircraft concepts program, designed to deliver low-carbon emission airframes of various sizes. The industry major has recently ground tested a hydrogen engine concept at 1.2 MW power. The investment will support ZeroAvia's continued growth and technology development, most notably progressing its first product – ZA600 - through to certification. ZeroAvia recently completed the first stage of flight testing of the prototype ZA600 and is moving to complete design work ahead of certification, targeting 2025 entry-in-service to support up to 20 seat aircraft. The funding will also enable ZeroAvia to continue to progress its larger engine program - the ZA2000, a 2-5.4 MW modular powertrain designed to support larger commercial aircraft applications. The company is working on retrofitting a Dash 8 400 76-seat testbed demonstrator provided by Alaska Airlines, with a view to first flight testing with a full size engine in 2024. The investment will help ZeroAvia extend the leadership it has established across core in-house technologies for multi-MW class hydrogen-electric engines, including high temperature PEM (HTPEM) fuel cells, advanced electric motors and power electronics, and onboard liquid hydrogen fuel storage. Val Miftakhov, Founder and CEO, ZeroAvia, said: "Anybody following the development of hydrogen aviation - and its potential to transform the industry - will see this investment as a positive step. Airbus has led the way with its zero-emission vision and its commitment to extensive R&D programs. For ZeroAvia to now have investors such as Airbus coming on board is the strongest possible validation of the prospects for hydrogen-electric propulsion technology." "ZeroAvia has already been successful in flight testing fuel cell propulsion, and hydrogen storage and distribution systems on board their Do-228 flight test platform which puts them in a strong position to take their technologies to the next phase of development," said Glenn Llewellyn, Airbus Vice President ZEROe aircraft. "In addition, ZeroAvia is supporting the development of a wider hydrogen ecosystem for aviation - technologies, decarbonised hydrogen supply and certification of hydrogen propulsion systems - which all complement well with our own ambition to bring a ZEROe hydrogen powered aircraft to service by 2035." Andy Challis, Co-Head of Principal Investments, Barclays, said: "Replacing fossil fuels with green hydrogen has been identified as a key decarbonisation pathway for hard to abate sectors, such as aviation. Our Sustainable Impact Capital portfolio is one of many ways which Barclays is supporting green-tech companies to innovate and scale, recognising that doing so at speed is crucial for a timely transition to net zero. ZeroAvia has shown that with ambition, technological innovation and the right support from both the public and private sector, it is possible to scale and implement such hydrogen technologies at pace, as evidenced by the ZA600 moving ever closer to commercial flight. We're delighted to be making a follow-on investment and look forward to seeing ZeroAvia continuing to drive change in the aviation sector." Majid Mufti, Managing Director NEOM Investment Fund, said: "At NEOM, we are committed to identifying and implementing sustainable solutions that pave the way for a greener future. Our focus on maximizing renewable energy sources and fostering innovation in alternative fuel systems aligns with ZeroAvia's pioneering efforts in hydrogen-electric propulsion technology. Developing a green hydrogen future is central to NEOM's mission, and participating in this venture with ZeroAvia was a natural choice for us. We look forward to working closely with the company and contributing significantly to reaching that future." About ZeroAvia ZeroAvia is a leader in zero-emission aviation, focused on hydrogen-electric aviation as the initially targeting a 300-mile range in 9–19 seat aircraft by the end of 2025, and up to 700-mile range in 40–80 seat aircraft by 2027. Based in the US and the UK, ZeroAvia has already secured experimental certificates for its three prototype aircraft from the CAA and FAA, passed significant flight test milestones, secured a number of key partnerships with major aircraft OEMs, secured pre-orders for nearly 2,000 engines from a number of the major global airlines, with future revenue potential over $10bn. ZeroAvia is part of the UK Government's Jet Zero Council. About Airbus Airbus is a global leader in aeronautics, space and related services. In 2022 it generated revenues of € 58.76 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world's leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide. About Barclays Sustainable Impact Capital As part of the firm's broader commitments, Barclays will invest £500m of its own capital, led by the Principal Investments team, in fast-growing, innovative, environmentally-focused companies whose values are aligned with those of Barclays and which target the goals and timelines of the Paris Agreement. Investments will be strategic to Barclays, its clients and the communities it serves, with clear scalable propositions that deliver both environmental benefits and economic returns. About NEOM NEOM is an accelerator of human progress and a vision of what a New Future might look like. It is a region in northwest Saudi Arabia on the Red Sea being built from the ground up as a living laboratory – a place where entrepreneurship will chart the course for this New Future. It will be a destination and a home for people who dream big and want to be part of building a new model for exceptional livability, creating thriving businesses and reinventing environmental conservation. NEOM will include hyperconnected, cognitive cities, ports and enterprise zones, research centers, sports and entertainment venues and tourist destinations. As a hub for innovation, entrepreneurs, business leaders and companies will come to research, incubate and commercialize new technologies and enterprises in groundbreaking ways. Residents of NEOM will embody an international ethos and embrace a culture of exploration, risk-taking and diversity.

Read More

Aviation Technology

Wheels Up Finalizes New Investment with Delta, Certares, Knighthead and Cox

Wheels Up | September 26, 2023

Wheels Up Experience (NYSE: UP) today announced that it has closed the previously announced investment by Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC and Cox Enterprises. The new investment structure combines the experience of Delta, the No. 1 premium airline, with the travel and tourism focus of Certares and turnaround and restructuring experience of Knighthead. It includes an agreement for a $500 million credit facility to Wheels Up, with funds contributed by Delta and CK Wheels LLC, which is co-managed by affiliates of Certares and Knighthead, and Cox. The announcement follows last week's selection of George Mattson as the company's new CEO. "This investment represents both an important source of capital for Wheels Up to support our strategy for financial stability, future profitability and long-term growth on behalf of our members and customers, as well as a vote of confidence in our path forward from a group of investors with deep experience in the premium travel space," Mattson said. "We look forward to working closely with Delta and our other investors to deliver best-in-class operating performance and an exceptional customer experience which, as we deepen our commercial partnership, will also enable us to provide a one-of-a-kind seamless connection between private and premium commercial travel." "Wheels Up is an integral part of Delta's portfolio of premium partners, and this deep relationship offers a significant opportunity to deliver compelling benefits to our customers that are unique in the travel space," said Dan Janki, Wheels Up Chairman and Delta's Chief Financial Officer. "This investment and new leadership puts Wheels Up on a strong path to future success." The credit facility is comprised of a $350 million term loan funded at closing from Delta, CK Wheels LLC and Cox and a $100 million revolving credit facility from Delta. The terms of the credit agreement permit a new lender to provide a $50 million term loan after the closing date, as approved by Delta, Certares, Knighthead and Cox, and it is anticipated this additional funding will close in the near term. In connection with the closing of the credit facility, the lenders will initially receive newly issued Wheels Up common stock representing 80% of the company's outstanding equity as of the closing of the credit facility, on a fully diluted basis. After approval by Wheels Up's stockholders of an amendment to its certificate of incorporation, the company will issue to the lenders additional new shares such that the lenders will own 95% of the company's outstanding equity as of the closing of the credit facility, on a fully diluted basis. Wheels Up also announced a new structure for its Board of Directors. Under the new structure, Delta Air Lines will appoint four directors, Certares and Knighthead each will appoint two directors, and Cox will appoint one director. In addition, one company executive will join the Board and two independent directors are expected to remain from the previous Board. The parties were assisted in the transaction by a number of strategic advisors, including: Davis Polk, Jefferies LLC, Kirkland & Ellis and PJT Partners. About Wheels Up Wheels Up is a leading provider of on-demand private aviation in the U.S. and one of the largest private aviation companies in the world. Wheels Up offers a complete global aviation solution with a large, modern, and diverse fleet, backed by an uncompromising commitment to safety and service. Customers can access membership programs, charter, aircraft management services and whole aircraft sales, as well as unique commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up also offers freight, safety and security solutions and managed services to individuals, industry, government, and civil organizations. Wheels Up is guided by the mission to connect private flyers to aircraft, and one another, through an open platform that seamlessly enables life's most important experiences. Powered by a global private aviation marketplace connecting its base of approximately 12,000 members and customers to a network of approximately 1,500 safety-vetted and verified private aircraft, Wheels Up is widening the aperture of private travel for millions of consumers globally. With the Wheels Up mobile app and website, members and customers have the digital convenience to search, book and fly.

Read More

Aerospace

Eviation Announces Order from Solyu for 25 Alice All-Electric Commuter Aircraft

prnewswire | September 12, 2023

Eviation Aircraft, a manufacturer of all-electric aircraft, today announced that Solyu, a leasing company based in Seoul, South Korea, has signed a Letter of Intent (LOI) for 25 commuter Alice aircraft with options for 25 additional aircraft. Solyu is focused on supporting sustainable aviation by providing financing and leasing solutions for the Alice to a global customer base of operators. Leading the Electric Age of Aviation The nine-passenger Eviation Alice is the world's first flight-proven all-electric commuter aircraft. Built from a clean-sheet design integrating magniX's industry-leading electric propulsion system, Alice produces zero carbon emissions and features lower operating costs per flight hour compared to light jets or high-end turboprops – thereby providing the opportunity to activate more routes, improving the convenience of air travel. "Solyu's order is a testament to how lessors are embracing Alice as the future of flight," said Eddie Jaisaree, Vice President, Commercial Sales at Eviation. "The leasing community is an important constituent in bringing about sustainable change in the aviation industry. It is exciting to see a forward-thinking company such as Solyu recognizing Alice's zero carbon technology, economic viability and beautiful design." "We are very excited to work with Eviation to bring sustainable aviation to the market," said Andrew Claerbout, President of Solyu. "With aviation regulations focusing on sustainability and airlines demanding to reduce their carbon footprint, we see Alice as a major contributor to meeting those targets. In addition to its zero emissions, Alice's flexible layout and low operating costs will provide operators opportunities to open new markets." "As we continue to take important steps toward certification, Alice has now secured US$ 5 billion in orders," said Gregory Davis, CEO of Eviation. "It is gratifying to see the marketplace so excited about Alice's innovative design, low cost of operation and environmental credentials. We are delighted to have Solyu, our newest leasing customer, join us in our mission to lead the electric age of aviation." About Eviation Aircraft Based in Washington State, U.S., Eviation Aircraft Inc. develops and manufactures electric aircraft to delight operators and passengers with green, cost efficient and convenient regional transportation. Its electric propulsion units, high-energy-density batteries, mission-driven energy management, and innovative airframe are designed from the ground up for electric flight. Please visit us at www.eviation.com. About Solyu Based in Seoul, South Korea, Solyu is a lessor focused on providing customers with the newest technology, zero emissions aircraft. The team at Solyu is highly experienced with decades of global experience in aircraft leasing and finance.

Read More

Aviation Technology

Airbus, Barclays Sustainable Impact Capital and NEOM co-lead ZeroAvia's latest financing round

ZeroAvia | September 21, 2023

ZeroAvia today announced that Airbus, Barclays Sustainable Impact Capital and NEOM have co-led the company's latest financing round. Breakthrough Energy Ventures, Horizons Ventures, Alaska Airlines, Ecosystem Integrity Fund, Summa Equity, AP Ventures and Amazon Climate Pledge Fund have also participated in the investment. This investment will enable ZeroAvia to accelerate progress towards certification of its first engine as well as delivering the company's mission of a hydrogen-electric engine in every aircraft. In conjunction with the investment, Airbus and ZeroAvia have agreed to collaborate on certification approaches for hydrogen power systems. The companies also intend to work together on a number of critical technical areas, including liquid hydrogen fuel storage, flight and ground testing of fuel cell propulsion systems, and development of hydrogen refueling infrastructure and operations. ZeroAvia is pursuing hydrogen-electric propulsion systems as the most environmentally friendly and economically attractive solution to aviation's growing climate change impact. The company's hydrogen-electric engines use hydrogen in fuel cells to generate electricity, which is then used to power electric motors to turn the aircraft's propellers, with the only byproduct during flight being water. Airbus is a global leader in fostering alternative propulsion using hydrogen. Fuel cell systems are an important part of its ZEROe aircraft concepts program, designed to deliver low-carbon emission airframes of various sizes. The industry major has recently ground tested a hydrogen engine concept at 1.2 MW power. The investment will support ZeroAvia's continued growth and technology development, most notably progressing its first product – ZA600 - through to certification. ZeroAvia recently completed the first stage of flight testing of the prototype ZA600 and is moving to complete design work ahead of certification, targeting 2025 entry-in-service to support up to 20 seat aircraft. The funding will also enable ZeroAvia to continue to progress its larger engine program - the ZA2000, a 2-5.4 MW modular powertrain designed to support larger commercial aircraft applications. The company is working on retrofitting a Dash 8 400 76-seat testbed demonstrator provided by Alaska Airlines, with a view to first flight testing with a full size engine in 2024. The investment will help ZeroAvia extend the leadership it has established across core in-house technologies for multi-MW class hydrogen-electric engines, including high temperature PEM (HTPEM) fuel cells, advanced electric motors and power electronics, and onboard liquid hydrogen fuel storage. Val Miftakhov, Founder and CEO, ZeroAvia, said: "Anybody following the development of hydrogen aviation - and its potential to transform the industry - will see this investment as a positive step. Airbus has led the way with its zero-emission vision and its commitment to extensive R&D programs. For ZeroAvia to now have investors such as Airbus coming on board is the strongest possible validation of the prospects for hydrogen-electric propulsion technology." "ZeroAvia has already been successful in flight testing fuel cell propulsion, and hydrogen storage and distribution systems on board their Do-228 flight test platform which puts them in a strong position to take their technologies to the next phase of development," said Glenn Llewellyn, Airbus Vice President ZEROe aircraft. "In addition, ZeroAvia is supporting the development of a wider hydrogen ecosystem for aviation - technologies, decarbonised hydrogen supply and certification of hydrogen propulsion systems - which all complement well with our own ambition to bring a ZEROe hydrogen powered aircraft to service by 2035." Andy Challis, Co-Head of Principal Investments, Barclays, said: "Replacing fossil fuels with green hydrogen has been identified as a key decarbonisation pathway for hard to abate sectors, such as aviation. Our Sustainable Impact Capital portfolio is one of many ways which Barclays is supporting green-tech companies to innovate and scale, recognising that doing so at speed is crucial for a timely transition to net zero. ZeroAvia has shown that with ambition, technological innovation and the right support from both the public and private sector, it is possible to scale and implement such hydrogen technologies at pace, as evidenced by the ZA600 moving ever closer to commercial flight. We're delighted to be making a follow-on investment and look forward to seeing ZeroAvia continuing to drive change in the aviation sector." Majid Mufti, Managing Director NEOM Investment Fund, said: "At NEOM, we are committed to identifying and implementing sustainable solutions that pave the way for a greener future. Our focus on maximizing renewable energy sources and fostering innovation in alternative fuel systems aligns with ZeroAvia's pioneering efforts in hydrogen-electric propulsion technology. Developing a green hydrogen future is central to NEOM's mission, and participating in this venture with ZeroAvia was a natural choice for us. We look forward to working closely with the company and contributing significantly to reaching that future." About ZeroAvia ZeroAvia is a leader in zero-emission aviation, focused on hydrogen-electric aviation as the initially targeting a 300-mile range in 9–19 seat aircraft by the end of 2025, and up to 700-mile range in 40–80 seat aircraft by 2027. Based in the US and the UK, ZeroAvia has already secured experimental certificates for its three prototype aircraft from the CAA and FAA, passed significant flight test milestones, secured a number of key partnerships with major aircraft OEMs, secured pre-orders for nearly 2,000 engines from a number of the major global airlines, with future revenue potential over $10bn. ZeroAvia is part of the UK Government's Jet Zero Council. About Airbus Airbus is a global leader in aeronautics, space and related services. In 2022 it generated revenues of € 58.76 billion and employed a workforce of around 134,000. Airbus offers the most comprehensive range of passenger airliners. Airbus is also a European leader providing tanker, combat, transport and mission aircraft, as well as one of the world's leading space companies. In helicopters, Airbus provides the most efficient civil and military rotorcraft solutions worldwide. About Barclays Sustainable Impact Capital As part of the firm's broader commitments, Barclays will invest £500m of its own capital, led by the Principal Investments team, in fast-growing, innovative, environmentally-focused companies whose values are aligned with those of Barclays and which target the goals and timelines of the Paris Agreement. Investments will be strategic to Barclays, its clients and the communities it serves, with clear scalable propositions that deliver both environmental benefits and economic returns. About NEOM NEOM is an accelerator of human progress and a vision of what a New Future might look like. It is a region in northwest Saudi Arabia on the Red Sea being built from the ground up as a living laboratory – a place where entrepreneurship will chart the course for this New Future. It will be a destination and a home for people who dream big and want to be part of building a new model for exceptional livability, creating thriving businesses and reinventing environmental conservation. NEOM will include hyperconnected, cognitive cities, ports and enterprise zones, research centers, sports and entertainment venues and tourist destinations. As a hub for innovation, entrepreneurs, business leaders and companies will come to research, incubate and commercialize new technologies and enterprises in groundbreaking ways. Residents of NEOM will embody an international ethos and embrace a culture of exploration, risk-taking and diversity.

Read More

Aviation Technology

Wheels Up Finalizes New Investment with Delta, Certares, Knighthead and Cox

Wheels Up | September 26, 2023

Wheels Up Experience (NYSE: UP) today announced that it has closed the previously announced investment by Delta Air Lines, Certares Management LLC, Knighthead Capital Management LLC and Cox Enterprises. The new investment structure combines the experience of Delta, the No. 1 premium airline, with the travel and tourism focus of Certares and turnaround and restructuring experience of Knighthead. It includes an agreement for a $500 million credit facility to Wheels Up, with funds contributed by Delta and CK Wheels LLC, which is co-managed by affiliates of Certares and Knighthead, and Cox. The announcement follows last week's selection of George Mattson as the company's new CEO. "This investment represents both an important source of capital for Wheels Up to support our strategy for financial stability, future profitability and long-term growth on behalf of our members and customers, as well as a vote of confidence in our path forward from a group of investors with deep experience in the premium travel space," Mattson said. "We look forward to working closely with Delta and our other investors to deliver best-in-class operating performance and an exceptional customer experience which, as we deepen our commercial partnership, will also enable us to provide a one-of-a-kind seamless connection between private and premium commercial travel." "Wheels Up is an integral part of Delta's portfolio of premium partners, and this deep relationship offers a significant opportunity to deliver compelling benefits to our customers that are unique in the travel space," said Dan Janki, Wheels Up Chairman and Delta's Chief Financial Officer. "This investment and new leadership puts Wheels Up on a strong path to future success." The credit facility is comprised of a $350 million term loan funded at closing from Delta, CK Wheels LLC and Cox and a $100 million revolving credit facility from Delta. The terms of the credit agreement permit a new lender to provide a $50 million term loan after the closing date, as approved by Delta, Certares, Knighthead and Cox, and it is anticipated this additional funding will close in the near term. In connection with the closing of the credit facility, the lenders will initially receive newly issued Wheels Up common stock representing 80% of the company's outstanding equity as of the closing of the credit facility, on a fully diluted basis. After approval by Wheels Up's stockholders of an amendment to its certificate of incorporation, the company will issue to the lenders additional new shares such that the lenders will own 95% of the company's outstanding equity as of the closing of the credit facility, on a fully diluted basis. Wheels Up also announced a new structure for its Board of Directors. Under the new structure, Delta Air Lines will appoint four directors, Certares and Knighthead each will appoint two directors, and Cox will appoint one director. In addition, one company executive will join the Board and two independent directors are expected to remain from the previous Board. The parties were assisted in the transaction by a number of strategic advisors, including: Davis Polk, Jefferies LLC, Kirkland & Ellis and PJT Partners. About Wheels Up Wheels Up is a leading provider of on-demand private aviation in the U.S. and one of the largest private aviation companies in the world. Wheels Up offers a complete global aviation solution with a large, modern, and diverse fleet, backed by an uncompromising commitment to safety and service. Customers can access membership programs, charter, aircraft management services and whole aircraft sales, as well as unique commercial travel benefits through a strategic partnership with Delta Air Lines. Wheels Up also offers freight, safety and security solutions and managed services to individuals, industry, government, and civil organizations. Wheels Up is guided by the mission to connect private flyers to aircraft, and one another, through an open platform that seamlessly enables life's most important experiences. Powered by a global private aviation marketplace connecting its base of approximately 12,000 members and customers to a network of approximately 1,500 safety-vetted and verified private aircraft, Wheels Up is widening the aperture of private travel for millions of consumers globally. With the Wheels Up mobile app and website, members and customers have the digital convenience to search, book and fly.

Read More

Aerospace

Eviation Announces Order from Solyu for 25 Alice All-Electric Commuter Aircraft

prnewswire | September 12, 2023

Eviation Aircraft, a manufacturer of all-electric aircraft, today announced that Solyu, a leasing company based in Seoul, South Korea, has signed a Letter of Intent (LOI) for 25 commuter Alice aircraft with options for 25 additional aircraft. Solyu is focused on supporting sustainable aviation by providing financing and leasing solutions for the Alice to a global customer base of operators. Leading the Electric Age of Aviation The nine-passenger Eviation Alice is the world's first flight-proven all-electric commuter aircraft. Built from a clean-sheet design integrating magniX's industry-leading electric propulsion system, Alice produces zero carbon emissions and features lower operating costs per flight hour compared to light jets or high-end turboprops – thereby providing the opportunity to activate more routes, improving the convenience of air travel. "Solyu's order is a testament to how lessors are embracing Alice as the future of flight," said Eddie Jaisaree, Vice President, Commercial Sales at Eviation. "The leasing community is an important constituent in bringing about sustainable change in the aviation industry. It is exciting to see a forward-thinking company such as Solyu recognizing Alice's zero carbon technology, economic viability and beautiful design." "We are very excited to work with Eviation to bring sustainable aviation to the market," said Andrew Claerbout, President of Solyu. "With aviation regulations focusing on sustainability and airlines demanding to reduce their carbon footprint, we see Alice as a major contributor to meeting those targets. In addition to its zero emissions, Alice's flexible layout and low operating costs will provide operators opportunities to open new markets." "As we continue to take important steps toward certification, Alice has now secured US$ 5 billion in orders," said Gregory Davis, CEO of Eviation. "It is gratifying to see the marketplace so excited about Alice's innovative design, low cost of operation and environmental credentials. We are delighted to have Solyu, our newest leasing customer, join us in our mission to lead the electric age of aviation." About Eviation Aircraft Based in Washington State, U.S., Eviation Aircraft Inc. develops and manufactures electric aircraft to delight operators and passengers with green, cost efficient and convenient regional transportation. Its electric propulsion units, high-energy-density batteries, mission-driven energy management, and innovative airframe are designed from the ground up for electric flight. Please visit us at www.eviation.com. About Solyu Based in Seoul, South Korea, Solyu is a lessor focused on providing customers with the newest technology, zero emissions aircraft. The team at Solyu is highly experienced with decades of global experience in aircraft leasing and finance.

Read More

Events