Business Jet Market is Booming, Aerospace Suppliers Turn to Private Equity, and More
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Aerospace Suppliers Turn to Private Equity Amid Banking Sector Disruptions
Financial turbulence is creating opportunities for private equity firms to invest in the fast-growing aerospace sector.
As demand for planes and parts soars, suppliers are struggling to find capital, especially with the collapse of Silicon Valley Bank and disruptions to other banks like First Republic Bank.
Private equity firms, holding record amounts of cash, are stepping in to fill the gap. However, the increased need for capital may lead to a loss of control for small, family-owned suppliers.
Global private equity deals in aerospace companies doubled in 2022 compared to 2019, as firms see opportunities amidst rising interest rates and banking-sector instability. Read more
UK Aerospace Industry Urges Government Action for Advanced Air Mobility Growth
ADS, the UK trade association for aerospace, defense, security, and space organizations, has released a report outlining key priorities for the development of Advanced Air Mobility (AAM) and electric Vertical Take Off and Landing (eVTOL) in the UK.
The report contains recommendations for decision-makers. It includes ensuring adequate resourcing for the Civil Aviation Authority, comprehensive policy requirements, prioritizing AAM infrastructure, fostering public engagement, and safely integrating AAM into airspace.
The ADS AAM Special Interest Group emphasizes the need for swift, decisive action to secure the UK's position in the AAM industry and avoid falling behind other nations. Read more
ES-30 Battery-Electric Aircraft Attracts Airlines
The ES-30, a battery-electric aircraft developed by Swedish startup Heart Aerospace, is gaining attention from major airlines and regional air operators.
The ES-30 is designed for regional operations and aims to usher in a new era of green flights. Although its range is currently limited to 124 miles, a future hybrid-electric version could achieve nearly 500 miles.
Aland, an autonomous part of Finland, is a prime candidate for all-electric flights due to its proximity to nearby cities and smaller population.
While the ES-30 is not expected to be ready for service until 2028, its smaller counterpart, the ES-19, will be available three years earlier. Read more
Growing Business Jet Market Leads Bombardier to Raise Revenue Goals
Bombardier Inc. has raised its financial targets for 2025 due to a thriving business jet market. The company now aims for over $9 billion in revenue, up from $7.5 billion, and has increased its free cash flow target to over $900 million, from over $500 million.
Bombardier plans to produce 138 jets in 2023 and 150 in 2025. CEO Éric Martel is confident in the company's strategy despite market uncertainties.
The global business jet market is projected to grow to $23.7 billion by 2028. Demand for private aircraft has risen due to increased flight delays, COVID-19 concerns, and the growing wealth of the ultra-rich. Read more
Qantas-Emirates Alliance Receives Temporary Green Light from Australian Regulator
The Australian Competition & Consumer Commission (ACCC) has granted interim authorization to Qantas Airways and Emirates, allowing them to continue coordinating passenger and cargo operations while their substantive application for authorization is under review.
The Qantas-Emirates alliance, formed in 2013, includes code-sharing, joint sales and marketing initiatives, reciprocal lounge access, and coordinated schedules between various regions.
The partnership has bolstered both airlines' positions in the competitive aviation industry and expanded cargo services globally.
The ACCC's interim authorization is not indicative of the final decision, which depends on the evaluation of the alliance's public benefits and detriments. Read more
FAA Examines Loss of Separation Between FedEx, UPS, and United Flights Near DFW Airport
The FAA is investigating an incident involving three commercial jetliners near DFW Airport on March 16. The aircraft were in holding patterns due to bad weather when FedEx flight 3952 received an automated alert of potential conflict with UPS Flight 5510, prompting corrective action.
This led the FedEx pilots to descend into the safety buffer between their aircraft and United Airlines Flight 2319, which then also descended in response to its own alert.
The FAA's preliminary analysis showed the closest proximities between the planes were within acceptable limits. UPS and United Airlines have directed all inquiries to the FAA. Read more
EasyJet Sets Sights on Hydrogen-Powered Aircraft for Short-Haul Flights
Budget airline easyJet aims to achieve net-zero emissions by 2050 by investing in hydrogen aircraft technology.
While most European airlines concentrate on green jet fuels, easyJet is also considering hydrogen as the future of short-haul aviation. EasyJet's European director, Thomas Haagensen views hydrogen as a more promising solution than electric aircraft.
Progress is being made despite hydrogen's technical challenges, such as storage, cryogenic temperatures, and the need for airport infrastructure changes.
Rolls-Royce successfully tested a hydrogen-powered engine in November 2022, and Airbus plans to test a similar engine by mid-decade. Read more
Turkey's Ground Handlers Limit Services to Russian Aircraft Amid US Sanctions
Turkey's leading airport ground handler firms, Havas and Turkish Ground Services (TGS), have ceased providing services to western-made aircraft operated by Russian airlines, following US sanctions.
Some major Turkish companies are also expected to stop refueling Russian airliners. The restrictions have affected 170 aircraft from airlines such as Aeroflot, Rossii, S7, and Utair Airlines.
Although there is no blanket ban on Russian planes, smaller companies continue to provide services.
Despite these limitations, Russian airline Aeroflot plans to open direct flights to Antalya from Samara, Nizhny Novgorod, and Ufa in late April. Read more
CPaT Global Partners with V-ONE ATO for Pilot Training Solutions
CPaT Global, a leading distance learning provider for the airline and aviation industry, has secured a new contract with Icelandic firm V-ONE ATO.
CPaT will deliver Boeing B737 MAX, B757, and B767 Aircraft System Courses, General Subjects, and Interactive Diagrams for V-ONE ATO's pilot training program.
The partnership offers V-ONE ATO access to premium content and pricing flexibility through CPaT's comprehensive Boeing Aircraft System Courses and on-demand pricing structure. Read more
Illinois Ranks Fifth in US States for Flight Delays, Over 1.4 Million Flights Disrupted in US
According to a Family Destinations Guide study analyzing Bureau of Transportation Statistics data, Illinois ranks fifth among states with the most flight delays.
The top five causes of flight delays in Illinois include air carrier delay, late aircraft arrival, national aviation system delay, cancellations, and weather delay.
Between January and November 2022, nearly 1.4 million flights were disrupted in the US. Air carrier delays, caused by circumstances within the airline's control, were the most common, affecting 465,759 flights. Read more
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