June 4, 2020 - No. 040 In This Issue How AI Will Change Aviation In The Future MHI RJ Aviation Group launches as Mitsubishi Heavy Industries Ltd. closes acquisition of CRJ Series Program from Bombardier Inc. Autonodyne Partners with Robotic Skies for Autonomous Unmanned Aircraft Systems Maintenance Support IBAC and GAMA Welcome ICAO Work on Aviation Challenges Related to the Global Pandemic With recent layoffs and penalties, Connecticut's aviation industry cuts back as coronavirus flattens airline industry King Aerospace Adds Hangar to Almost Triple Capacity Thai Cabinet picks airport bidder The largest electric plane yet completed its first flight - but it's the batteries that matter Airbus veterans called up to rescue aviation supply chain SpaceX's 1st astronaut launch was NASA's most-watched online event ever How AI Will Change Aviation In The Future As commercial aviation strives to minimize human contact in a bid to make passengers and staff feel safe in the post-pandemic era, what better time to take a look at what is going on with Artificial Intelligence in the realm of air travel? Previously accused of being slow in its application, AI in the aviation market is now expected to grow from $152.4 million in 2018 to $2.2 billion by 2025. "FLY AI" In March this year, the European Aviation High Level Group on AI published its first "FLY AI" report. The document pools the expertise of EUROCONTROL with that of several key actors such as air navigation service providers, airlines, airports, plane manufacturers, EU bodies, military, and more. "With European aviation facing growing pressure to reduce its environmental impact, as well as persistent capacity bottlenecks, we need more sophisticated changes on the ground and in the air (...). Artificial Intelligence can be a key ally in pursuit of this goal," Adina Valean, European Commissioner for Transport, commented on the report. "FLY AI" found that Artificial Intelligence has a huge potential for use in areas that feature complex scenarios, such as the optimization of support for Air Traffic Controllers (ATCOs), Air Traffic Safety Electronics Personnel (ATSEPs), pilots, airport operators, flow controllers or cybersecurity officers. For example, in 2019, air traffic management service NATS began a trial at Heathrow Airport to see if the use of ultra HD 4K cameras combined with machine learning technology, could be used to help improve the airport's landing capacity in times of low visibility and improve punctuality. In 2018, Rodin Lyasoff, CEO at A³ by Airbus, the manufacturer's Silicon Valley innovation center, according to Forbes, said that areas such as taxiing and ground operations are "ripe for disruption" through AI capabilities. Software for security Also last year, AI security company Synapse Technology announced the release of the first patented AI platform for X-ray machines, called Syntech ONE 200. A software designed to improve the effectiveness of check-point scanners, it has already been ordered by Osaka's Kasai International Airport. Wide range of application Even though aviation has sometimes been accused of lagging behind other areas in its use, AI has already brought some significant changes to how flights are operated. Thus far, it is widely implemented by airlines and airports for facial recognition, customer Q&A, baggage check-in, factory space, and fuel optimization. However, its application areas are much broader. Mostly, it comes down to the same objectives, namely cost-efficiency and the improvement of customer experience. Aircraft management is an arduous task that, if done inefficiently, can cost a carrier enormous amounts of cash. AI systems can predict when maintenance is required, helping airlines optimize service. Like when Delta Air Lines slashed its maintenance delays by 98% in 2018 by focusing on Big Data and predictive maintenance, as reported by Forbes. Ticket prices and crew management AI algorithms could also help airlines optimize ticketing prices, which are built on multiple parameters such as seasonality, fuel prices, competition, etc. Faculty, a British company specialized in AI solutions, has developed an AI model that was able to provide forecasts that were between 70% and 80% accurate up to 90 days before every flight Then there is crew management. Factors such as certification, availability, and qualification of pilots, flight attendants, and engineers must all be taken into account. To schedule and re-schedule staff using an AI-based roster system would increase HR efficiency and hopefully optimize layovers for crew. Will R&D suffer? Before the pandemic struck, 52% of airlines were planning major AI R&D programs within the next three years, and 45% of airports in the next five, according to Aviation Business News. Business and technology grow together. As commercial airlines struggle to make a comeback after the worst crisis ever to hit the industry, they would do well to look towards the future and not pull back from investing in innovation. https://simpleflying.com/ai-aviation-future/ Back to Top MHI RJ Aviation Group launches as Mitsubishi Heavy Industries Ltd. closes acquisition of CRJ Series Program from Bombardier Inc. Headquartered in Montréal, Canada, MHI RJ Aviation Group (MHIRJ) is launching as a newly created group of entities providing a holistic service and support solution for the global regional aircraft industry including the CRJ Series aircraft. The launch of MHIRJ coincides with the acquisition close of the CRJ Series Program from Bombardier Inc. (Bombardier) (TSX: BBD.B) by Mitsubishi Heavy Industries, Ltd. (MHI) (TOKYO:7011). "I am pleased to announce the opening chapter of MHIRJ's story," said Hiroaki Yamamoto, President & CEO of the MHI RJ Aviation Group. "Building on the solid foundations already in place and with the strong support of the MHI group of companies, there is new energy on board and our team is committed to serving the regional aviation market and becoming a platform for growth in the industry."As part of the acquisition, MHI acquires the maintenance, engineering, airworthiness certification support, refurbishment, asset management, marketing, and sales activities for the CRJ Series aircraft, along with the type certificates and related intellectual property rights. This transaction also includes the related services and support network mainly located in Mirabel and Toronto (Canada), and Bridgeport and Tucson (United States). CRJ Series Spare parts will continue to be distributed from depots in Chicago (United States) and Frankfurt (Germany). About MHI RJ Aviation Group MHI RJ Aviation Group (MHIRJ) provides comprehensive critical operational, engineering and customer support solutions including maintenance, refurbishment, technical publications, marketing and sales activities for the global regional aircraft industry. Headquartered in Montréal, Quebec, and bolstered by an Aerospace Engineering Center, MHIRJ's network of service centres, support offices and parts depots are positioned in important aviation hubs in the U.S., Canada and Germany. A wholly owned subsidiary of Mitsubishi Heavy Industries, Ltd, MHI RJ Aviation Group includes MHI RJ Aviation ULC (Canada), MHI RJ Aviation Inc. (U.S.A.) and MHI RJ Aviation GmbH (Germany). For more information about the company, please visit: www.mhirj.com About MHI Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, is one of the world's leading industrial firms with 80,000 group employees and annual consolidated revenues of around US$38 billion. For more than 130 years, the company has channeled big thinking into innovative and integrated solutions that move the world forward. MHI owns a unique business portfolio covering land, sea, sky and even space. MHI delivers innovative and integrated solutions across a wide range of industries from commercial aviation and transportation to power plants and gas turbines, and from machinery and infrastructure to integrated defense and space systems. For more information, please visit MHI's website: www.mhi.com/index.html https://www.webwire.com/ViewPressRel.asp?aId=259870 Back to Top Autonodyne Partners with Robotic Skies for Autonomous Unmanned Aircraft Systems Maintenance Support Autonodyne LLC, an aviation engineering firm with expertise in unmanned aerial system and software design and certification, announced its partnership with Robotic Skies, the global maintenance, repair, and overhaul network for commercial unmanned aircraft systems (UAS). The companies will develop field maintenance and other support services for Autonodyne's mission-critical systems and solutions. Autonodyne provides the certification platform for on-board mission computers, software, and ground control systems that enable UAS to co-exist with manned operations in the global airspace infrastructure. Autonodyne works with operators of both small (under 55 pounds) and large (over 55 pounds) commercial unmanned and advanced aerial mobility aircraft. Autonodyne has experience in the certification of more than 75 manned systems with unrestricted flight approval in the National and International Airspace. Autonodyne is now applying that knowledge to the unmanned aerospace market. The company has particular expertise in next-generation aviation software that enables smart automation and autonomous vehicle control. Robotic Skies, through partnerships with unmanned aircraft manufacturers and existing manned aviation repair stations, provides enterprise UAS fleet operators with local turnkey field service support. The company employs traditional aviation methodology to make UAS flight operations safe, productive, and compliant with regulatory maintenance requirements. Autonodyne CEO, Steve Jacobson, said: "We are focused on building architectures to support the unrestricted flight of unmanned aircraft in the national airspace. Robotic Skies is an ideal partner in this effort because, in addition to giving us the ability to scale up our customer support program quickly, they understand the nuances of operating in regulated airspace." "Our companies share a common background in manned aviation," said Robotic Skies Founder and CEO, Brad Hayden. "The partnership with Autonodyne is a unique opportunity to combine the experience of our teams and bring the aviation safety mindset and best-practices to advancing autonomous unmanned aviation technology." Autonodyne LLC Autonodyne is focused on becoming the kernel for unmanned aerial flight. Combining control station, on-board mission computer, and advanced autonomy behaviors, Autonodyne develops and certifies systems and software for civil and defense aircraft that operate without a traditional pilot. Autonodyne has expertise in national and international certification for unmanned aerial systems, and is located primarily in Boston, Massachusetts. Learn more at http://www.autonodyne.com. Robotic Skies, Inc Robotic Skies is a global network of maintenance Service Centers for enterprise Unmanned Aircraft System (UAS) fleets. Founded in 2014, Robotic Skies has 200 independently owned and operated certified repair stations in its network (and growing), spanning more than 40 countries. The company's aviation-grade field service programs are flexible, scalable, and meet the regulatory requirements for complex commercial operations like drone delivery. Learn more at www.roboticskies.com. https://www.suasnews.com/2020/06/autonodyne-partners-with-robotic-skies-for-autonomous-unmanned-aircraft-systems-maintenance-support/ Back to Top IBAC and GAMA Welcome ICAO Work on Aviation Challenges Related to the Global Pandemic The International Business Aviation Council (IBAC) and the General Aviation Manufacturers Association (GAMA) welcome the report of the Council Aviation Recovery Task Force (CART) released by the International Civil Aviation Organization (ICAO). The report outlines principles and recommendations regarding the restart and recovery of the global air transport system following the COVID-19 pandemic. CART's work will facilitate coordination among the ICAO Member States, international and regional organizations, including IBAC, and industry by providing global guidance for a safe, secure, and sustainable restart and recovery of the aviation sector. Kurt Edwards, IBAC Director General, said, "We commend ICAO and the task force for developing these principles and recommendations to assist the restart and recovery of the air transport system. Although the report speaks mainly to scheduled air transport and large airports, we at IBAC, representing business aircraft operators, are pleased to note the report's support for protecting people, working as one aviation system, ensuring essential connectivity, and strengthening public confidence using public health measures that work with the aviation system." Edwards underscored IBAC's efforts in a closely related initiative at ICAO, the Collaborative Arrangement for the Prevention and Management of Public Health Events in Civil Aviation (CAPSCA), which links ICAO, the World Health Organization (WHO), other United Nations agencies and industry in developing coordinated, practical approaches to operating under the current challenges. "We continue to work with ICAO in other ways," said Edwards. "Through CAPSCA, we have expanded the concept of the Public Health Corridor (PHC) to include some critical operational needs of the business aviation sector, such as ferry flights, maintenance flights, and delivery flights to public sector owners. These are the types of operations that cannot be delayed and can be managed within the envelope of confidence provided by the PHC concept." GAMA provided important information to support the expansion of the PHC concept. GAMA President and CEO, Pete Bunce, said, "We applaud the ICAO Council Aviation Recovery Task Force for its work to put forth guidelines and recommendations addressing the impacts of the COVID-19 pandemic on global aviation. General and business aviation is working concurrently with similar health and safety protocols and appreciative of the progress being made on Public Health Corridors. It is crucial that all sectors of the aviation industry work together to progress through the recovery process," added Bunce. The CART report can be found here. https://www.aviationpros.com/airlines/press-release/21140825/international-business-aviation-council-ibac-ibac-and-gama-welcome-icao-work-on-aviation-challenges-related-to-the-global-pandemic Back to Top With recent layoffs and penalties, Connecticut's aviation industry cuts back as coronavirus flattens airline industry The crisis in the aviation industry has come to Connecticut. A Torrington aerospace manufacturer has announced the layoff this summer of 129 workers while other manufacturers are being hit with penalties by customers for late deliveries and are struggling with delayed orders. Franklin Products Inc., a manufacturer of airline seat components, said in a May 15 letter to the state Department of Labor it had limited success getting financial help. The assistance was not enough to save the jobs, which will be cut between July 10 and July 31, the company said. "This mass layoff is expected to be permanent," Kerri Picard, the company's president, said in the letter. "These are business circumstances that were not reasonably foreseeable as of the time notice would be required." Once a bright spot in the state's economy, manufacturing in commercial aviation has skidded as the coronavirus halted air travel. "The near term is cloudy," said Colin Cooper, Gov. Ned Lamont's chief manufacturing officer and a former industry executive. "We're not quite sure where things will settle out." Connecticut's defense work is not affected by the coronavirus that has halted much of the commercial aviation sector. "The good news is the Connecticut aerospace supply base has a good mix between military and commercial," Cooper said. "Commercial is tough right now." The International Air Transport Association projects a 55% drop in revenue for the industry this year from 2019, or a loss of $324 billion. About 4.5 million flights have been canceled through June 30, the industry association said. For Connecticut, a center of aerospace since the 1920s when the first Wasp air-cooled radial engine was built in a Hartford factory, leading to the founding of Pratt & Whitney, the downturn is a gut punch. "It used to be workforce, workforce, workforce," said Paul Murphy, president of Aerospace Components Manufacturers, an industry group representing companies in central Connecticut and western Massachusetts. "Buy new buildings, buy new floor space, buy new machines. It was a good run." Manufacturing jobs in Connecticut, which include employment beyond aviation and aerospace, fell to a new low of 149,500 in April, down 8% from February before the coronavirus began its sweep across the state. Manufacturers squeezed by demand that has collapsed are turning to the supply chain to help cut costs, delaying payments and imposing penalties for failing to comply with three- to five-year agreements disrupted by the coronavirus, Murphy said. "It's making it tough to be viable as a supplier," he said. Similar efforts to conserve cash are underway further up the chain. Anthony "Toby" O'Brien, chief financial officer of Raytheon Technologies Corp., said at a web-based industry analysts' conference Tuesday that airline customers are grounding aircraft, accelerating the retirement of older planes, deferring and canceling aircraft deliveries, putting off engine payments and seeking extended payment terms and discounts of engine maintenance. That's forcing Raytheon, parent company of Pratt & Whitney and Collins Aerospace, to cut costs and adjust production schedules, he said. The Waltham, Mass.-based company's outlook is for the "steepest drop in sales" in the quarter ending June 30, but the next quarter, from July 1 to Sept. 30, "will still be tough," O'Brien said. "We still don't see a full recovery until sometime out in 2022," he said. The coronavirus has thrown sand into the gears of Whitcraft Group, an aviation manufacturing company that has recently expanded. It announced that 130 workers at a Scarborough, Maine, plant will be laid off. Whitcraft, which operates in Eastford and elsewhere in Connecticut, is moving some of the work to South Windsor. Chief Executive Officer Doug Folsom said he does not expect to see demand for products in commercial airlines to return until 2022 at the earliest. For Airbus and Boeing, demand may not resume until 2023 or 2024, he said. https://www.courant.com/coronavirus/hc-news-coronavirus-aerospace-20200602-y2camnjqpre5nicporckyhprxq-story.html Back to Top King Aerospace Adds Hangar to Almost Triple Capacity Even with 200,000 sq ft between four hangars at Ardmore Industrial Airpark in Oklahoma, space is at a premium for MRO provider King Aerospace, which is why it is now laying plans for additional expansion. The Dallas-based company that specializes in VVIP aircraft is looking to add a fifth, 90,000-sq-ft hangar. That hangar will increase its covered space by 45 percent and provide additional room for multiple large jets and shops to support large aircraft interior projects. Once construction begins, it's expected to last between 12 and 15 months. In addition to VVIP aircraft, King Aerospace provides depot services for military and government aircraft at its Ardmore site, which has a 9,000-foot runway to accommodate VVIP and ultra-long-range business jets. A second 5,300-foot runway supports turboprops and light and midsize jets. King's civil aircraft services include maintenance, avionics, paint, and interior refurbishment. https://www.ainonline.com/aviation-news/business-aviation/2020-06-02/king-aerospace-adds-hangar-almost-triple-capacity Back to Top Thai Cabinet picks airport bidder Thailand's Cabinet yesterday approved a bid by a consortium led by BTS Group Holdings PLC for an airport development project worth 290 billion baht (US$9 billion). The project would add a third passenger terminal at the U-Tapao International Airport near Pattaya, which in normal times is a tourist hot-spot, and develop other facilities like air cargo and aviation maintenance centers. The project is part of the Eastern Economic Corridor, a 1.7 trillion baht plan to build infrastructure and develop advanced industries along the eastern seaboard. The corridor is an attempt to bolster long-term investment to improve Thailand's economic outlook, which has been badly damaged in the recent weeks by the novel coronavirus outbreak. Apart from BTS Group, the consortium includes Bangkok Airways PLC and Sino-Thai Engineering & Construction PLC. The public-private partnership contract is due to be signed on June 19. Narita International Airport Corp has been selected to manage the airport. BTS Group and Sino-Thai would handle construction, and Bangkok Airways would bring its aviation expertise, Eastern Economic Corridor Office Secretary-General Kanit Sangsubhan said. Kanit added that his office is in talks with DHL Worldwide Express and FedEx Corp for the air cargo business planned at the airport complex. Last year, a group led by Charoen Pokphand Group signed a contract to build high-speed rail connections between U-Tapao and the two international airports in Bangkok, one of the biggest transport upgrades in the country's history. Officials expect U-Tapao to have capacity for as many as 60 million passengers per year once it is expanded. The plans for the airport and rail links were put in place before the coronavirus flared up and brought tourism to a standstill. Most international incoming flights are banned until the end of this month, and it remains unclear what tourism will look like when the curbs are eased. However, Thailand plans to create so-called "travel bubbles" through bilateral agreements designed to keep COVID-19 in check when the country's borders are reopened. "Once the situation improves, we'll allow travel between countries that we have an agreement with," Thai Prime Minister Prayuth Chan-ocha said in a briefing in Bangkok yesterday, adding no such pacts have reached the Cabinet yet. "There won't be free movement because we don't want another outbreak that could hurt both the origin and the destination," Prayuth said. https://www.taipeitimes.com/News/biz/archives/2020/06/03/2003737506 Back to Top The largest electric plane yet completed its first flight - but it's the batteries that matter When a small white-and-red Cessna Grand Caravan plane took off from Moses Lake in Washington state on Thursday, it was flying into history. The aircraft flew at more than 100 mph to an altitude of around 2,500 feet, made a few turns and then landed after 28 minutes - an otherwise unremarkable journey for a common aircraft. What made history was under the hood. The eCaravan, as it has been dubbed, is powered by a 750-horsepower electric motor, supplied with energy by more than 2,000 pounds of lithium-ion batteries. Weighing in at over 4 tons, with a wingspan of over 50 feet and room for nine passengers, it's the largest electric plane ever to have flown. Electric airplanes have been heralded as the future of cleaner, climate-friendly air travel. Electric motors have several advantages over gas-powered engines but one major shortcoming - the batteries that power them. While significant advances in battery technology have been made in the last 10 years, batteries are still so heavy that electric planes can't be expected to fully replace fossil fuel aircraft in the foreseeable future. But proponents argue that they don't need to and that the benefits of electric aviation are already real. Roei Ganzarski, CEO of the Seattle-based electric propulsion firm magniX, which is developing the eCaravan with the flight testing company AeroTEC, said electric aircraft can be better than fossil-fuel propeller planes over distances of up to 1,000 miles, which make up more than half of all passenger flights in the world today. Airlines today use jets or turboprops for those flights, he noted, "but that's a waste of fuel, it's a waste of emissions, and it's not good for the environment." "Why not do it electrically, which is also cheaper, as well?" Ganzarski said. The eCaravan will go through several months of further testing, both aloft and on the ground, before the Federal Aviation Administration can approve the design, perhaps late in 2021. Turboprop Caravan planes are used around the world to carry passengers and haul cargo, and the eCaravan's developers hope their electric version can take on some regional airline routes. Proponents boast that electric airplanes are quieter, safer and cheaper to run than fossil fuel planes. The half-hour Moses Lake eCaravan flight, for example, used just $6 of electricity - instead of $300 of kerosene - and the gasoline engine of its smaller chase plane was twice as loud. Electric motors are also lighter than fossil fuel engines, don't need as much maintenance and last much longer before they need to be replaced, Ganzarski said And as long as the electricity is generated cleanly, electric aircraft create no atmospheric carbon emissions, he added. The key drawback of electric aircraft is their limited range, which depends on the batteries that they can carry - although a few designs use hydrogen fuel cells, instead. Today's batteries are at least 30 times heavier than an energy-equivalent volume of kerosene, so electric aircraft can make only much shorter flights. The eCaravan has a range of about 100 miles. But a turboprop Cessna Caravan with the same weight of kerosene can fly about 1,500 miles. Better batteries are on the way. Materials scientist Shirley Meng of the University of California, San Diego is part of the Battery 500 Consortium working on new battery designs. Commercial lithium-ion batteries can store about 250 watt-hours of electricity per kilogram, she said, but new designs could double that in a few years - although it depends on how quickly factories can be equipped to make them. "We don't have mass production capabilities, but on the research front, right now we are hitting 400 [watt-hours]. We're not at 500 yet," Meng said. Electric aircraft can also take advantage of battery technologies pioneered by electric cars. Electric-car maker Tesla and its competitor GM are about to reveal "million-mile" batteries based on chemistries that can increase their lifetimes and drive down their prices. New battery technologies from electric cars will soon make their way to electric aircraft, Ganzarski said - although aircraft battery packs are different, they use the same basic designs. https://www.nbcnews.com/science/science-news/largest-electric-plane-yet-completed-its-first-flight-it-s-n1221401 Back to Top Airbus veterans called up to rescue aviation supply chain They are the A-team - respected veterans of Airbus, Europe's aerospace champion, recalled from retirement to defend the industry's fragile supply chain against a devastating collapse in demand. Each has been chosen to lead a national task force: Tom Williams, former chief operating officer of Airbus commercial, for the UK; Didier Evrard, ex-head of aircraft programmes, for France; and Bernhard Gerwert, previously chief executive of the defence arm, for Germany. The aim is to bring together each country's big aerospace manufacturers to plan for the survival of their shared domestic suppliers. Even before the pandemic, many suppliers had been weakened by the grounding of Boeing's 737 Max single-aisle jet after two fatal accidents. Now many companies in Europe's €127bn-a-year civil aerospace industry face a crippling cash squeeze. Payments for orders that came before demand collapsed will begin to dry up from the end of this month. Meanwhile, bills for goods ordered when forecasts were brighter are now falling due. "This wave is coming towards them and they are under pressure," said one senior industry executive. But the task forces have a longer-term mission too, and one that is already under strain from mixed political and business motives. It is to win government support for a radical restructuring of their highly fragmented domestic supply chains, so Europe's three biggest aerospace industries will be competitive when demand eventually returns. "There has to be a reshaping of the landscape," said Mr Williams, who retired in late 2018 after two decades at Airbus. "A number of companies have struggled to earn a decent level of profitability. We need to create companies that are more robust to protect core technologies for the upturn." Right now, many customers are refusing to take deliveries, suspending contracts, cancelling orders or demanding price cuts. They will run down their own buffer stocks before coming back to suppliers for more, exacerbating the impact of the downturn. "This is the reality," said Michel Crozier, who runs the Safran Electrical & Power factory at Villemur-sur-Tarn, near Toulouse, pointing to a rack of aircraft wiring sitting on his factory floor with a label: "Customer order cancelled. To be reallocated". Mr Crozier explained: "A finished product where the need is no longer there because the company isn't taking a plane any more." Before the pandemic, companies such as Safran Electrical had raced to keep pace with the world's appetite for air travel. At the start of 2020, waiting times for Airbus's most popular single-aisle aircraft ran to more than six years. "Up to eight or 10 weeks ago they were being driven by the primes [the top manufacturers such as Airbus] and biggest suppliers to increase production. Everything was about buying new machine tools and ordering lots of long lead-time material," said Mr Williams. "There was a lot of cash going out the door quickly." Almost overnight, that growth turned into dramatic decline. Revenues evaporated at companies making spare parts for the $77bn-a-year maintenance, repair and overhaul market, as two-thirds of the world's commercial fleet was grounded in the first quarter. In April, the world's two big aircraft makers, Airbus and Boeing, slashed production by between a third and 50 per cent respectively to reflect reduced demand from cash-strapped airlines. Airbus could go further this month when it unveils job cuts, expected to total more than 10,000. That abrupt U-turn is now ricocheting through Europe's aerospace supply chain. Companies took advantage of wage support schemes offered in France, Germany and the UK before moving to job cuts. The biggest, such as Rolls-Royce and Meggitt, have announced workforce reductions of 15 per cent or more. Smaller companies such as UK turbine blade manufacturer JJ Churchill have cut the workforce by 40 per cent and will invest in automation. "The whole supply chain, from tier one suppliers like us, down to our own suppliers, are going to have to adapt," said Philippe Petitcolin, chief executive of engine maker and equipment supplier Safran. "The supply chain is going to have to reduce capacity by a minimum of 30 to 40 per cent for the years ahead, not just for a few months." The further down the scale, the more intense the pain, in a supply chain where small companies with fewer than 100 employees are the norm, especially in the low margin, but critical segments such as machining, structures and surface treatments. In the UK, 725 out of 820 aerospace suppliers have fewer than 50 employees, while those with under 250 employees account for just over a third of the industry's 118,000 jobs, according to UK trade body ADS. In France and Germany, close to 60 per cent of aerospace suppliers generated annual revenues of less than €50m in 2018, according to a 2018 survey. Many of these smaller businesses are disproportionately focused on commercial aerospace, with little diversification to offset the current downturn. "Before, it was a challenge for the supply chain to meet delivery targets and maintain quality while ramping up production rates," said Robert Thomson of management consultancy Roland Berger, which has been helping to assess the impact of the crisis on Britain's supply chain. "Now the risk is about survival." That vulnerability is particularly concerning for aircraft and aero-engine makers, who need suppliers to be able to invest in expansion when the time comes. It is also beginning to worry defence ministries, who fear that a weak aerospace supply chain could jeopardise some of their programmes. While the cheap loans offered by many governments have been welcome, many aerospace companies are not keen to take on more debt. An industry looking at a three to four-year recovery needs "patient capital" designed to fit the recovery cycle, said Paul Everitt, head of ADS. Equally, each country's industry knows that competitors will be looking to exploit the crisis to snare a bigger share of the global market. The UK's share of the global industry has slid in recent years. France, with annual industry revenues of €65.4bn, has overtaken the UK, now at £36bn, while Germany's industry has caught up fast at €40bn in annual turnover. In previous crises, the French government has supported industry-led funds to invest in domestic aerospace. Now Marwan Lahoud, another former Airbus executive, is raising a new fund with a target of €1bn from private investors and the industry. The government is expected to put in additional money as part of a multibillion-euro aerospace support package to be launched later this month. The aim of the fund is no longer to support SMEs with minority stakes as in previous initiatives, but to take majority positions in promising aerospace suppliers in an attempt to drive consolidation. Yet tensions are emerging over how the funds should be used. Some industry investors object to funding the growth of rivals, or of enabling suppliers to build the scale that will allow them to push back on pricing. "There are a lot of common interests - and also some divergence," said one person close to the discussions. "It is bloody difficult to do." In the UK, questions centre on whether the government would support foreign-owned companies with local sites. In addition, any fund would have to overcome the government's aversion to a policy that might be seen as "picking winners". But in all three countries there are worries that if domestic companies are not strong enough to drive consolidation, local aerospace expertise will be acquired by foreign buyers. "Investors in the US aerospace business are among the groups who are looking for opportunities in Europe irrespective of Covid," said Alex Murrill, an investment banker at Baird. "People are seeing opportunity in a crisis." The supply chain could be reshaped in other ways, such as transferring orders from the least efficient to the best in class, which in some cases could force the weakest under. It is a Darwinian battle, say executives, where only the fittest will survive. "Given the duration [of the crisis] that we expect, we can't support all the suppliers the whole time. It isn't possible," said Mr Petitcolin of Safran. Big original equipment makers such as Airbus, Safran, GKN and Rolls-Royce have already begun to reallocate orders, or even take work back in-house to minimise the impact of the crisis on their own workforces. Warrick Matthews, head of procurement at Rolls-Royce's civil aerospace division, said his company would seize the chance to accelerate rationalisation of its 700 civil aerospace suppliers. "I want to come out with the highest-performing supply chain both in the UK and globally," he said. "Will we have fewer higher-performing suppliers coming out of this crisis? Yes, that is my desired state." https://www.ft.com/content/3bec9f5b-086f-4757-8022-642b738dd0b7 Back to Top SpaceX's 1st astronaut launch was NASA's most-watched online event ever NASA's "Launch America" drew much of the nation in. On Saturday (May 30), SpaceX launched its first-ever crewed mission, a test flight called Demo-2 that sent NASA astronauts Bob Behnken and Doug Hurley to the International Space Station (ISS). The liftoff was the first orbital crewed launch to depart from American soil since NASA retired its space shuttle fleet in 2011. And a record number of people tuned in to watch the milestone online, agency officials said. "We're still collecting the data, but some of our metrics are saying that peak viewership for the joint NASA-SpaceX launch broadcast across all of our platforms was at least 10.3 million concurrent viewers - the most-watched event we've ever tracked," NASA Associate Administrator for Communications Bettina Inclán said during a news conference on Sunday (May 31), shortly after Behnken and Hurley's Crew Dragon capsule arrived at the ISS. To be clear: The record Demo-2 just broke is for internet traffic, not viewership of all kinds. For example, it's estimated that about 600 million people - one-sixth the global population at the time - watched the Apollo 11 moon landing on TV on July 20, 1969. Several high-ranking American officials, including Vice President Mike Pence, have drawn parallels between the famed Apollo missions and Demo-2, noting that both took place in times of extreme turmoil and division in the United States. Apollo's backdrop included protests against the Vietnam War and widespread civil-rights abuses. And today the nation is beset by the coronavirus pandemic and social unrest stemming from the tragic May 25 death of George Floyd at the hands of Minneapolis police. The Saturn V rockets that launched the Apollo missions "rose above the tumult and the clamor of their times. They were a symbol of national strength and unity," Pence said on Saturday shortly after Demo-2's liftoff. "I believe with all my heart that millions of Americans today will find the same inspiration and unity of purpose that we found in those days in the 1960s." SpaceX holds a $2.6 billion contract to conduct six operational crewed flights to the orbiting lab for NASA. If Demo-2 is successful all the way through, Elon Musk's company will be clear to start conducting those contracted missions. https://www.space.com/nasa-spacex-astronaut-launch-viewer-record.html Curt Lewis