DEFENSE AND SPACE

Spirit AeroSystems Opens National Defense Prototype Center

Spirit AeroSystems Inc. | October 18, 2021

Spirit AeroSystems Opens National Defense Prototype Center
Spirit AeroSystems Holdings, Inc. [NYSE: SPR] held a grand opening event and ribbon cutting ceremony for its National Defense Prototype Center (NDPC), a joint project with Wichita State University’s National Institute for Aviation Research (NIAR). This new research center will significantly expand Spirit’s capabilities and production efficiencies in the defense and space market.

NIAR has been a tremendous partner in the development of the National Defense Prototype Center and enabling Wichita as a center for defense growth, The NDPC provides a secure space for high temperature materials testing, as well as development, prototyping and industrialization capabilities to support Spirit’s growth strategy targeting $1 billion of defense revenue by the mid-2020s.

- Duane Hawkins, Spirit AeroSystems executive vice president; president, Defense and Space.

The research center comes soon after Kansas earned its designation as one of 11 Defense Manufacturing Communities by the Department of Defense (DoD). The Defense Manufacturing Community Support Program will encourage long-term community investments to strengthen national security innovation and expand the capabilities of the defense manufacturing industrial ecosystem.

The National Defense Prototype Center encompasses more than 125,000 square feet of manufacturing and lab space with processing and characterization capabilities, including high temperature testing, furnaces for fabricating and processing materials, multi-method non-destructive inspection, robotic automated fiber placement technology and a large autoclave. The center promotes the capacity to sustain broader and maximum throughput capabilities to support a high-priority national defense program.

The more knowledge that can be generated and disseminated about high temperature materials, the more these materials can be used, optimized, and designed for specific objectives. This leads to reliable and safe products that enable the industry to go further, push faster, and break through current design limitations. Not only is this a first for the state of Kansas, but for the nation in terms of testing capacity at these temperatures.

- John Tomblin, Wichita State’s senior vice president for Industry & Defense Programs and NIAR executive director.

The research center is the first of its kind with the ability to attract new aviation, defense, and space programs with a focus on high-temperature materials, such as hypersonic missiles, that can withstand temperatures of 2,500-5,000°F. The NDPC offers distinctive capabilities and research technology that will spur the development of new high temperature materials and ultra-competitive composites.

About Spirit AeroSystems Inc.
Spirit AeroSystems is one of the world’s largest manufacturers of aerostructures for commercial airplanes, defense platforms, and business/regional jets. With expertise in aluminum and advanced composite manufacturing solutions, the company’s core products include fuselages, integrated wings and wing components, pylons, and nacelles. We are leveraging decades of design and manufacturing expertise to be the most innovative and reliable supplier of military aerostructures, and specialty high-temperature materials, enabling warfighters to execute complex, critical missions. Spirit also serves the aftermarket for commercial and business/regional jets. Headquartered in Wichita, Kansas, Spirit has facilities in the U.S., U.K., France, Malaysia and Morocco. 


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BUSINESS AVIATION

Southern California's Ontario International Airport Authority authorizes major ground lease and development agreement for surplus property

McDonald Property Group | December 24, 2021

The Ontario International Airport Authority (OIAA) Commission voted unanimously today to authorize a Development and Entitlement Agreement that will lead to a ground lease for approximately 198 acres of surplus property at the Southern California airport. The 55-year lease will generate approximately $275 million over the first 10 years, which will support ongoing airport improvements while keeping costs down for airlines. The OIAA determined the property, located east of Haven Avenue, north of Jurupa Avenue, south of Airport Drive and west of Carnegie Avenue, is unsuited for typical airport use, making it surplus to the airport's aviation/aeronautical needs. (See accompanying ONT aerial photo showing surplus property to be leased.) "We are pleased and proud to move forward with the first of several major real estate transactions to monetize vacant property since the airport was transferred to local control in November 2016, As envisioned in the OIAA strategic business plan, the ongoing revenue stream will help ONT fund vital safety, security and infrastructure projects while keeping airport costs to airlines low. As a result, ONT will become even more attractive for airlines to inaugurate and increase flight schedules." -Alan D. Wapner, Mayor pro Tem of the City of Ontario and President of the OIAA Board of Commissioners. CanAm Ontario LLC, a venture formed by San Antonio, TX-based USAA Real Estate Company and McDonald Property Group of Newport Beach, CA, will develop the vacant property for industrial use in compliance with the Airport Compatibility Plan required under State Law. Steven Ames, Managing Director-Investments, USAA Real Estate Company, sounded a note of optimism following the Board's action. CanAm Ontario was selected following a competitive process which began with 17 bidders managed by CBRE Group, Inc., a global leader in real estate services and investment headquartered in Los Angeles. The deal calls for a non-refundable $10 million deposit to OIAA. After allowing time for CanAm Ontario to obtain local jurisdictional entitlement and environmental approvals, rental revenue to the OIAA will start at $25 million in the first year, increasing in five-year increments, resulting in revenue of $90.6 per year in the final five years. The net present value of the agreement is $625 million. "The air carriers at Ontario support efforts that keep operating costs low, which benefits anyone who uses the airport, This is an example of the Authority's continued efforts to provide funding for airport improvements while reducing airline costs". -Trey Hettinger, Chair of the ONT Airline Affairs Committee representing the Signatory passenger and cargo airlines operating at ONT. Airport officials noted that special consideration was given to ensure the transaction complies with applicable federal laws and Federal Aviation Administration policies and provide lease revenue exceeding fair market value as determined by three independent appraisals. Federal law requires that revenues generated by the airport be used for airport purposes. About Ontario International Airport Ontario International Airport (ONT) is the fastest growing airport in the United States, according to Global Traveler, a leading publication for frequent fliers. Located in the Inland Empire, ONT is approximately 35 miles east of downtown Los Angeles in the center of Southern California. It is a full-service airport which, before the coronavirus pandemic, offered nonstop commercial jet service to 26 major airports in the U.S., Mexico, Central America and Taiwan. About the Ontario International Airport Authority (OIAA) The OIAA was formed in August 2012 by a Joint Powers Agreement between the City of Ontario and the County of San Bernardino to provide overall direction for the management, operations, development and marketing of ONT for the benefit of the Southern California economy and the residents of the airport's four-county catchment area. OIAA Commissioners are Ontario Mayor Pro Tem Alan D. Wapner (President), Retired Riverside Mayor Ronald O. Loveridge (Vice President), Ontario City Council Member Jim W. Bowman (Secretary), San Bernardino County Supervisor Curt Hagman (Commissioner) and retired business executive Julia Gouw (Commissioner).

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AVIATION TECHNOLOGY

Nok Air signs two strategic agreements with Sabre to power growth and support the Thai carrier's far-reaching new business model

Sabre Corporation | December 20, 2021

Thai airline Nok Air today announced strategic new long-term agreements with both Sabre Corporation (NASDAQ: SABR) a leading software and technology provider that powers the global travel industry, and its subsidiary company, Radixx, to support the evolution of the carrier's new business strategy. Nok Air has selected an extensive suite of products from Sabre and Radixx to expand distribution and revenue generation opportunities. The agreements support the carrier's repositioning to serve its growing customer base of premium travellers and value-based customer segments. The Sabre and Radixx products will power future business model evolution as Nok Air expands its international operation, develops new airline partnerships and explore further technical capabilities and innovations beyond today. Radixx will provide a fully integrated passenger service system for Nok Air that spans reservations, inventory, pricing, e-commerce, agency distribution, departure control, load control, loyalty and other related capabilities. In parallel, under a new Sabre distribution deal, Nok Air will distribute its airline content across Sabre's global travel marketplace, opening the door to new international markets and growing its Thailand home market on the Sabre Global Distribution System (GDS). "We have ambitious business expansion plans, including launching new domestic and international routes, restructuring our fleet and adding new jets as we transition selected segments to a premium service to reflect our quality service, So, it was imperative to us that we chose the right technology partner to support us in all of our goals to streamline our operations, improve efficiencies and open new revenue opportunities and new markets while improving the experience for our travellers." -Wutthiphum Jurangkool Ph.D., Chief Executive Officer of Nok Air. The carrier, which operates out of Bangkok's Don Mueang International Airport, will utilize the following Sabre and Radixx products as Thailand re-opens to vaccinated international travellers: Radixx Res – Radixx's core passenger system will enable Nok Air to manage all passenger operations and sales channels in order to expand distribution channels and partnerships. Radixx Go and Radixx Go Touch – new digital capabilities to evolve Nok Air's check-in operation at airports, enhance customer service and enable additional ancillary revenue-generation opportunities across airport touchpoints. Radixx Go Touch enables airline employees to transact full airport departure control capabilities from a mobile device, allowing some flexibility from the constraints of physical airport desks and counters. Radixx ezyCommerce – an integrated e-commerce and mobile solution to power Nok Air's business-to-consumer for passengers and business-to-business channels for travel agents and corporates. Radixx Loyalty – new capabilities will enable Nok Air to strengthen the offering of its Nok Air Fan Club, including enhanced online servicing, automation and redemption options for members. Radixx Insight – valuable business data and analytics to enable better decision-making, while powering the airline's internal back-office systems. Sabre's Global Distribution System – to enable expansion into new global markets, ensuring its fares have the widest possible distribution. "We're delighted to further expand our footprint in APAC while opening up access to new global markets and segments for Nok Air as well as providing new digital capabilities for the carrier, creating additional revenue-generation opportunities and, ultimately, enabling Nok to create improved experiences for travellers at all touchpoints." -Chris Collins, Senior Vice President and General Manager for Radixx "At Sabre, we are laying out our strategic plans to create our own catalysts for growth, so we are thrilled to be able to support Nok Air on its own transformational journey, Our new dual-deal alliance with Nok Air, incorporating both PSS and GDS solutions, is the perfect example of how Sabre and Radixx are able to combine synergistic technological offerings to create effective, innovative end-to-end solutions for airlines of all sizes and cost models." -Rakesh Narayanan, Vice President, Regional General Manager, Asia Pacific, Travel Solutions Airline Sales, Sabre. About Sabre Corporation   Sabre Corporation is a leading software and technology company that powers the global travel industry, serving a wide range of travel companies including airlines, hoteliers, travel agencies and other suppliers. The company provides retailing, distribution and fulfilment solutions that help its customers operate more efficiently, drive revenue and offer personalized traveller experiences. Through its leading travel marketplace, Sabre connects travel suppliers with buyers from around the globe. Sabre's technology platform manages more than $260B worth of global travel spend annually. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.

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BUSINESS AVIATION

Boeing selects Collins Aerospace electric power generation system for B-52

Collins Aerospace | January 17, 2022

As part of the U.S. Air Force's ongoing modernization efforts to keep the B-52 bomber flying into the 2050s, Boeing has selected Collins Aerospace, a Raytheon Technologies (NYSE: RTX) company, to upgrade the aircraft with a new electric power generation system (EPGS). Collins will supply a modern EPGS derived from industry-leading commercial technology. The new EPGS will be an upgrade to the B-52's current 70-year-old system, with more efficient technology that requires less power from the engine to operate. This will contribute to the Air Force's goal of a 30 percent improvement in fuel efficiency for the B-52 along with a decrease in carbon dioxide emissions. "Collins Aerospace is a leading provider of electric power systems for military platforms and the supplier of choice for virtually all U.S. Air Force aircraft, Our new EPGS for the B-52 will leverage proven commercial technology to support greener aircraft operation while also paving the way for future platform enhancements that will extend the operational service life of the Stratofortress for decades to come." -Stan Kottke, vice president, Electric Power Systems for Collins Aerospace. The new EPGS will include eight generators per aircraft providing the added redundancy in onboard electrical power necessary to support future B-52 modernization upgrades including radar, avionics and mission systems. Collins expects to create more than 60 jobs to support the B-52 EPGS program at its Electric Power Systems Center of Excellence in Rockford, Illinois. In addition to the EPGS, Collins has also been selected to provide new wheels and carbon brakes for the B-52. The company currently supplies several systems for the aircraft and is actively working with the Air Force and the plane's manufacturer to explore how it can support further B-52 modernization efforts, including communications and avionics upgrades. About Collins Aerospace Collins Aerospace, a unit of Raytheon Technologies Corp. (NYSE: RTX), is a leader in technologically advanced and intelligent solutions for the global aerospace and defense industry. Collins Aerospace has the extensive capabilities, comprehensive portfolio and broad expertise to solve customers' toughest challenges and to meet the demands of a rapidly evolving global market. About Raytheon Technologies Raytheon Technologies Corporation is an aerospace and defense company that provides advanced systems and services for commercial, military and government customers worldwide. With 195,000 employees and four industry-leading businesses ― Collins Aerospace, Pratt & Whitney, Raytheon Intelligence & Space and Raytheon Missiles & Defense ― the company delivers solutions that push the boundaries in avionics, cybersecurity, directed energy, electric propulsion, hypersonics, and quantum physics. The company, formed in 2020 through the combination of Raytheon Company and the United Technologies Corporation aerospace businesses, is headquartered in Waltham, Massachusetts.

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COMMERCIAL AVIATION

Atlas Air Worldwide Purchases Four Boeing 777 Freighters

Boeing | January 07, 2022

Boeing [NYSE: BA] and Atlas Air Worldwide today announced an order for four 777 Freighters. The order, placed in December, rounds out a record-setting 2021 for Boeing's freighter family including new-production and converted models. Boeing has forecast that the global freighter fleet will grow by 70% in the next 20 years, with freight carriers such as Atlas Air supporting a rapidly expanding global e-commerce business and evolving supply chains. "We are excited to expand our fleet and service offerings for our existing and prospective customers with these four new 777s. With the best team in the industry as well as our focus on innovation and prudent fleet management, Atlas is serving the evolving needs of the global supply chain and delivering value for our customers," - John W. Dietrich, Atlas Air Worldwide president and CEO. Boeing's market-leading 777 Freighter is the world's largest, longest-range and most capable twin-engine freighter, with the lowest trip cost and highest reliability of any large freighter. With a range of 4,970 nmi (9,200km), the 777 Freighter can carry a maximum revenue payload of 102 tonnes (224,900 lb), while reducing fuel use and CO2 emissions compared to prior airplanes. This capability and exceptional efficiency translate into significant savings for cargo operators, with fewer stops and associated landing fees. "We are honored that Atlas Air Worldwide, as a global leader in airfreight, has once again selected to grow with Boeing and our freighter family. These new 777 Freighters provide Atlas with more capacity, fuel efficiency and operational flexibility for its customers, As air cargo demand continues to grow, we're confident that the efficiency, capability and flexibility of our freighter family will meet customer needs now and in the future." -Ihssane Mounir, Boeing senior vice president of Commercial Sales and Marketing. Through November, Boeing had surpassed the previous freighter record including 80 orders for new production freighters and more than 80 orders for converted models. The company will announce full-year 2021 orders and deliveries on January 11. Atlas Air currently has 14 777s and is the world's largest operator of 747 Freighters, with 49 in its fleet. These two models, in particular, are designed to partner seamlessly, enabling operators to transfer tall and outsized cargo loads easily between the two on 3-meter (10-foot) tall pallets. The cargo and passenger carrier also operates a fleet of 767 and 737 airplanes. As a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. As a top U.S. exporter, the company leverages the talents of a global supplier base to advance economic opportunity, sustainability and community impact. Boeing's diverse team is committed to innovating for the future and living the company's core values of safety, quality and integrity.

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