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What are the primary leasing issues in this region? This panel will also review the challenge of the return of leases: How are standards being set up?

Airlines and lessors are retiring aircraft much faster than before: What will this trend mean for the industry? Exhibit Hall Opens a. We will examine the reach of Etihad with its new Etihad Airways Partners and pushes into Europe and more. Are these growth plans sustainable?

We will reconcile how technology can also support engineering and maintenance departments and new generation engines in the region. Who has successfully implemented new technology? While the competition between OEMs and service providers has clearly increased, what is the impact of this change in the MRO ecosystem on the airlines? Fixing faults overnight, rapidly deferring new faults at the gate, reducing gate delays with improved communication between pilots, line maintenance and the Operations Control Center.

Making sure Maintenance, contracted or not, sees itself as part of that operations environment. Khwaja M. Aircraft Prize Draw p. Activity and Lunch in the Exhibit Hall p. Levin Company, Inc. Romania AeroTurbine, Inc. EMC Aerospace, Inc.

The usual single submarine, the 11th unit of the Soryu-class, is quantitative easing and a stimulus program. The a large warship. Border control with the Dornier NG. If approved, The investment share for new equipment in the total de1. Korea priority Percent of GDP 2. ILS provides a marketplace for buying and selling aviation parts and services, but we also offer more to help you do business.

It features modern avionics and glass cockpit, while providing low procurement and operating costs. Plus the AWKx offers a fve-hour fuel range with the ability to carry additional students, maximizing valuable fight time. Learn more at AdvancedHelicopterTrainer. Airbus and Tata Advanced Systems Ltd. Pilatus is already scouting for local companies capable of building PC-7s. The Hai Shih was commissioned into the U. Navy in The Malaysian deal is an indicator that the fast but expensive U.

Littoral Combat Ship is likely to be blown out of the water in the export market by Europeandesigned ships.

Submarines are a high priority in the region for intelligence, special operations and sea-lane control. HDW, Saab and DCNS are pitching for the contract DCNS has unveiled a concept 5,ton class, named Ocean, which is basically a non-nuclear version of its Barracuda and Australia has talked to Japan about using technology from the newest Soryu-class boats, including their use of lithium-ion batteries.

Amy Butler Washington The U. One of the most anticipated benchmarks is the U. In parallel, the U. These milestones will show that despite years of delays and billions of dollars in cost overruns, the project is establishing a global foothold.

The buy could include as many as 50 jets per year, for a total of units. The idea is to entice partners to commit early to stabilize the industrial base and push the per-unit price down as early as possible in the program. The fate of this proposal will be a good indicator of whether the F program can achieve its ambitious cost targets; roughly half of the annual sales are to be for foreign customers in the coming years, if customers sign on as planned.

If not, the per-unit price is likely to hover too high and, possibly, deal a major blow to the long-term future of the project. International customers will also be interested in whether the F is once again a no-show at the Royal International Air Tattoo in July. The Pentagon is still hoping to debut the aircraft this coming summer at the air tattoo at RAF Fairford, outside London.

Italy, which has built the first F final assembly and checkout facility outside the U. Japan is a foreign military sales customer for the F, as are Israel and South Korea. Work will also gather steam for the F customers who were chosen to handle heavy maintenance activities for airframes and engines. The Netherlands and Norway will stand up engine facilities in , about three years after the work in Italy and Turkey starts.

Fiscal Dollars as soon as Saab nation opens up the The U. Marines Saab 1. The Boeing Martin Martin All numbers and percentages rounded. It is widely thought that ticated avionics to operate in various scenarios. Air Force opted phibious Navy ship; also, the second round of developmento cancel its avionics upgrade project for its Fs in Navy bein the second half of The Navy is expected to purchase than of the aircraft.

With the DT trials aircraft, which would be a competitor to the F, is likely to under its belt, political pressure is mounting for the Navy to enter service in , but could debut as early as this year. But given the uncertainty of the orders, the a cooperative program with India to modify the design for its company is studying what rate is optimal to keep the line in purposes.

Produced by the Chengdu Aircraft Corp. Around the globe, military and aerospace systems designers have turned to Meggitt to help them meet thermal and power management challenges with compact, effcient vapor cycle systems and liquid cooling sub-systems.

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E-mail: [email protected] www. China unveiled new prototypes of the J in , however, indicating some design changes, including a more slender fuselage section aft of the main landing gear. Although much mystery still surrounds the project, details could trickle out in if Beijing is seeking foreign sales. The decision will, however, have a major impact on U.

Meanwhile, nations opting for stealthy aircraft that feature fused avionics are also eager to pivot to new training systems to ready their pilots for this enhanced workload. Air Force is expected to start its long-awaited T-X program to replace aging TCs in service in Some armed forces in North Africa and Asia are waiting for a decision on T-X before moving forward with their own procurements.

Progress is also expected in for unmanned combat aircraft. Navy is eyeing the system as a long-endurance intelligencecollection system for service on aircraft carriers; it is also expected to feature a limited-strike capability. The stealthy unmanned aircraft is slated to drop the Mk 82, a lb. FA Lightning II 35 M2 15, lb. Implement better processes. Meet the experts. Test-drive new products.

Uncover new revenue, partnership and growth opportunities. And non-U. Embraer, meanwhile, has a launch order from the Brazilian air force for 28 KCs, for delivery beginning in , and the company holds letters of intent for another 32 from Argentina, Chile, Colombia, the Czech Republic and Portugal.

France, Turkey and the U. Air Force begins in Demand for the CJ has slowed but remains steady, with Israel and South Korea becoming the latest operators in The delayed award of another U. But the CJ is becoming increasingly squeezed between aircraft C replacement market, but competition could come from more rivals than just Lockheed.

The new aircraft would operate alongside the Xian Y strategic airlifter now in development. China has talked of an aircraft between the Y and Y in size—the Y—but it is not yet launched. Production deliveries of the Il with PSA turbofans began in mid China and Russia are also exporters of AEW aircraft and are developing next-generation aircraft. Russia, meanwhile, is developing the next-generation A, based on the reengined IlMDA, to be ready by A next-generation KJ reportedly is in test.

Only two top-end anti-submarine warfare ASW aircraft programs are active. A rotodome-equipped AEW variant of the P-1 is in early study. A decision is expected early in Navy in October Existing E-2C operator Japan plans to buy four aircraft.

Aircraft manufactured in China, India and Russia are not forecast. Among even stream business smaller aircraft, the jets, for a market Beechcraft King Air ER remains popular for special misBoeing forecasts at aircraft over the next 10 years. In addition to borne Multi-Intelligence System. Air Force is beginning a program to replace its Defense Channel The premier source for up-to-date information on leading trends in the defense industry.

Visit Aviationweek. Driving Demand More capable platforms are creating requirements for more advanced weapons Graham Warwick Washington and Larry Dickerson Forecast International Missile and platform development tends to be countercyclical. Once a new aircraft is operational, attention turns to developing weapons that exploit its capabilities. This is particularly true in Europe, where weapons from portable anti-armor to air-launched cruise missiles are under study, in development or entering production, collaboratively and nationally.

Many inventory munitions are too big for the weapons bays. With the Lockheed Martin F Joint Strike Fighter expected to become operational from , attention is turning to developing weapons for internal carriage. These range from smaller precision-guided munitions carried in greater numbers to stealthy anti-ship and strike missiles that will enable the F to engage a wider set of targets.

In the U. Fielding of upgraded combat helicopters also has added impetus to weapons development. New and upgraded warships also are driving missile developments. A long gap in U. At the same time, production will drop 4. The largest producers are Russian and Chinese, but their export orders will be low, as Western systems are preferred. OASuW will be an opportunity for U. But the number of countries making anti-ship missiles keeps growing.

Demand for U. All percentages rounded. The Pentagon is exploring two options: a full competition or picking the best attributes of existing design options and having the government manage them to produce a best-of-breed option, MDA Director Vice Adm. James Syring said in December. Details have not been disclosed, but it is potentially worth billions over the course of several years.

The contract, awarded in late , originally focused on reducing cost; some feel that introduced too much risk into the exacting work needed for the system. They are expected to be combined in a large contract with additional U. Meanwhile, U. Germany—along with Italy—was partnered with the U. This has left Germany and Italy struggling to continue the project.

Poland is also expected to make a decision on its air defense needs. China is striving to emulate—and possibly surpass—the range of unmanned capabilities developed by the U. It is no surprise that China should emerge as the biggest buyer now that the U. Europe continues to struggle to cooperate on development, production and even operation of UAS.

France and the U. Neuron is due to be relocated to Sweden in for weaponrelease trials after completing radar cross-section tests in France and Italy. South Korea also aims to be a major player in the Asian market, and is developing an array of UAS including armed systems. Northrop Grumman is the top market earner, with cuts in U. Fire Scout unmanned helicopter. But as U. RQB Raven 3 4. Dollars Middle East 6. Asia Boeing, General Atomics, Lockheed and Northrop were all funded to take Uclass concepts to preliminary design in anticipation of a competition that did not begin as anticipated in DJI says it ships 10, units a week over the U.

Parrot, which has sold half a million AR Drones since its launch in , says its sales are up threefold over and are expected to triple in Sales are usually of lower-priced systems, and can soar one year and fall draAviationWeek.

This is taking longer than expected due to concerns ranging from safety to privacy. More than 2, UAS already apply pesticides and fertilizer to rice paddies in Asia.

Other potential applications include pipeline and powerline inspections. With more than , mi. Forecast International expects the civilian and commercial UAS market will grow relatively slowly.

Outside of hobbyist UAS, quantities will remain low for the time being. Y Improved visibility and performance over lifetime. Y LED light rated to last x longer than incandescent — resulting in signifcant power, labor and cost-savings. The company may also unveil a new version of its EC light twin, which has been undergoing testing at its Donauworth, Germany, facility. Marine Corps as it takes over from the CHE later this decade.

Technical Although should have been the milestone year for this new class of helicopter, upgrades to AgustaWestland AWs and Airbus Helicopters ECs failed to materialize as planned.

Billions of U. Compare that to Sikorsky Robinson Operators have been cau The contract, ping even more. Poland is seeking to replace its Mi Hind attack With new customers having to wait until for the most helo as well. Helibras to accelerate production. The company launched The U. The aircraft has garnered interest ever since it was launched at the Heli-Expo; nearly 50 orders and agreements are in hand, many from the U.

The backlog is large enough to push production into a third year. A joint program between Russian Helicopters and AgustaWestland to produce a 2. The HeliVert joint venture appears to have ended last spring, taking with it licensed production of the AW after just three aircraft were built.

Although U. Chinese operators placed orders for 50 new AWs, AWs and AWs with AgustaWestland, and Airbus Helicopter received orders for nearly single- and twin-engine aircraft to be used for aerial work, tourism, search-and-rescue and medical transportation.

The year may also see the emergence of designs from new players. Turkey is working on a ton twin-engine helicopter in the AWclass, and South Korea is developing new Light Armed and Light Civil Helicopters; negotiations with Western helicopter manufacturers to support the programs are ongoing.

Bell holds more than letters of intent for the model and hopes to achieve the same level of success it had with the original Model Jet Ranger in the s. About 40 of the letters of intent are from Europe; more than 50 are from China. The company now hopes to begin production of the SKYe Galleries See a review in photographs of key events in the rotorcraft sector in at: AviationWeek.

For the military engine market, too many players continue to chase too few opportunities as the focus for most remains on international orders, sustainment and life extensions. GE and Snecma produced 1, CFM56s between them in and this year will begin gradually working up to more than 1, per year by The G is due to enter service in , while its larger G sibling will debut the following year.

The revised schedule now calls for cer- ance and Honda in the GE-Hondajet business jet engine partnership, the combined tally of GE-only and GEpartnered engine deliveries is expected to grow to around 2, in Deliveries of the GEnx family continue to build, driven largely by accelerating delivery rates for the Sustained production of the CF34 for the Bombardier and Embraer regional jet families also continues to grow, with engine deliveries across the family set to rise from in to in Production of the GE90 for the current family is set to remain consistent at over per year, with deliveries set to reach in and in the build-up to initial production of the GE9X for the follow-on X family.

The latter is due to enter service on the larger A derivative in mid, while production of the initial XWB will ramp up to two per week during and rise to one per day by As part of its ongoing battle with GE to bolster its share of the market, Rolls will also certify the improved Trent TEN by the end of Service entry on the stretched is scheduled to follow in The TEN also forms the basis for the Trent , another new engine in development for the reengined Aneo.

To be rated at 68,,lb. Rolls believes the Trent will extend the legacy of the ATrent relationship which has become its most successful engine-airframe combination since the and RB The 1,th Trent was delivered in November and more than 1, are in service or on order. The UltraFan will incorporate a fan drive gear system that drives a variable-pitch fan, and is outlined with a bypass ratio and overall pressure ratio of Both GE and Pratt will meanwhile conduct preliminary design reviews of their competing AETD engines in early , leading to a quick series of tests later this year and into GE plans to run an adaptive subscale fan in the fourth quarter of in test facilities at Wright Patterson Air Force Base, Ohio, followed by compressor tests in Pratt plans to conduct demonstration testing of an advanced high-pressure-ratio core in early , to be followed later in by full engine testing of a three-stream adaptive fan and compatible augmentor and exhaust system.

First international show debut in the U. EJ production engine in mid Efan adaptive, 45,lb. Expected to start in September continue to be delayed. Air Force Regin deliveries. Equipping countless customers with total solutions to accomplish diverse missions.

Customizing systems that achieve far-reaching goals. Performance-proven time and time again in space, air, on land and at sea. No matter what, when or where. When results matter, you can count on IAI. Is it in autonomous aircraft, fast rotorcraft, responsive launchers, brain-inspired computers or somewhere else? Energy consumption is an escalating problem for computers, particularly increasingly powerful devices required for image processing and machine learning applications important to defense.

In the Air Force Research Laboratory and others will get to test a high-performance, low-power processor inspired by the human brain. Yet it consumes less than 70 milliwatts of power and is a step toward a human-brain-scale processor packaged into a 5-in. Army maintains that a new 3,shp turboshaft to reengine its Boeing AH and Sikorsky UH helicopters is a priority.

Both programs aim to advance unmanned technology and reduce the workload on operators by enabling autonomous decision-making. Improving survivability. It all starts with seizing control of the electromagnetic spectrum and using it to ensure mission success.

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The designs are believed to feature vertical lift, but Darpa is also funding Aurora Flight Sciences to demonstrate its crane-like SideArm system pictured , which can enable a warship to launch and recover a 1,lb. Navy into Air Force. A carrier-capable Sea Avenger is proposed for Uclass. Navy Uclass Start of the Unmanned Carrier-Launched Surveillance and Strike program has slipped into amid debate over requirements for a hr. For all, the goal is to reduce the cost of space access. Falcon Heavy will use three Falcon 9v1.

ULA has been hit by uncertainty over the supply of Russian RD engines for its Atlas V, because of the threat of retaliation against sanctions on Moscow for its intervention in Ukraine. Congress wants the RD replaced with a U. The Air Force would prefer a public-private partnership to develop it commercially. The new vehicle will come in two versions: Ariane 62 with two solid-rocket boosters for single-satellite launches up to 5, kg to GTO; and Ariane 64 with four boosters for dual launches up to 10, kg.

China has been the low-cost launch provider, but faces competition from SpaceX. Angara development is planned to be completed by Two versions are planned, one lifting 2, kg to GTO and another with two strap-on boosters lifting 6, kg. Previously only a few satellites below kg were orbited each year, mostly for scientific experiments or on technology demonstration missions for universities and governments with small space programs.

The newest opportunities are for commercial operators such as Planet Labs. The average payloads per launch increased to 1. The trend is continuing. Through October , an average 2. Commercial launches, as categorized by the FAA, increased to 23 in from 19 in In the same period, government-operated launches declined to 58 from So launches by commercial entities increased to It is unclear how long the ISS will remain operational, but partner nations have expressed interest in maintaining the outpost to the mids.

Only Russia and China are able to transport humans into space. Losing bidder Sierra Nevada Corp. Between , Russia But other countries, notably India and Japan, are building their own launch vehicle programs. The disadvantage of electric orbital transfer is that it will take up to eight months to reach geostationary orbit GEO.

Lockheed Martin will use higher-power Hall-effect thrusters as the all-electric option on its A This bus has been repackaged for side-by-side dual launch, can now be reprogrammed in orbit and is being redesigned using additive manufacturing for faster, cheaper production.

New small GEO platforms are also emerging. The kg Kuband satellite is scheduled for launch in There is a growing number of small communications satellites in lower orbits.

In the commercial communications market, as demand for bandwidth has increased, spacecraft have become heavier. Large communications payloads and the power they require have driven up size—the average launch mass of geosynchronous satellites launched in was 5, kg 11, lb. Bigger satellites can carry more high-powered transponders. New technologies have been introduced as satellites become increasingly powerful. Gallium-arsenide solar cells and lithium-ion batteries increase the power available for large communications payloads.

Unfurlable antennas, deployed on reaching operating orbit, can be up to 22 meters 72 ft. Even as satellites get larger, orders for smaller spacecraft enabled by new technologies are growing. Orbcomm is launching a second generation of lowEarth-orbit satellites for machine-tomachine communications. Startup WorldVu Satellites is planning a network of Ku-band, kg spacecraft in non-stationary orbits.

As demand for data increases, so does the need for frequency spectrum. Satellite operators not only compete for available spectrum with each other, but with terrestrial mobile broadband networks that are growing rapidly. At the World Radiocommunications Conference, the mobile broadband industry will push for access to C-band frequencies traditionally reserved for satellite use. The new law allows many spacecraft and components to be placed on the less-restrictive Commerce Control List, managed by the pro-business Commerce Department rather than security-focused Defense Department.

Export financing has become increasingly important. Providing connectivity to users in remote areas and those on the move is adding to the traditional roles satellite communications have played in connecting networks and delivering video, and helping drive demand for new satellites.

China, Russia and the U. Other countries that took delivery of military spacecraft during that timeframe—India, Mexico, North Korea, Turkey and the U. Of military satellites with an openly declared mission launched between and , They are bestowed upon individuals and organizations that have distinguished themselves through outstanding performance, innovation, and superior service.

A disaggregated satellite network would be better able to handle the loss of a single spacecraft and allow more rapid reconstitution. Buying commercial capacity has helped meet military demand for communications and remote sensing. Typically, deals have been signed on an as-needed basis and a recent Pentagon report to Congress indicated costs for bought capacity can be up to four times that of bandwidth owned by the Defense Department.

Now militaries are working to create long-term agreements they hope will lower costs and improve access to bandwidth. In June , the U. In value terms, the U. Other large buyers will include Russia Military production will increase through , reaching a high of 26 satellites, then sharply decline in by Value of production will take a more drastic tumble in , declining Production will begin increasing again in as the U.

Militaries are investigating increased use of commercial satellites, hosted payloads and disaggregation concepts. The CSeries—and the anticipated Boeing and Airbus A—herald the era of the reengined derivative. Airlines show by their orders that they are willing to accept the concept not only for narrowbodies but for widebodies as well. Work is underway on all. Qatar Airways will be the launch customer for the Aneo, as it was for the A in Airbus plans to ramp up production of the Aneo to 46 aircraft within the next three years.

The type has been a major commercial success. After the launch of the Aneo, completing design work for the derivative takes precedence. The Aneo design freeze is slated in late for an entry into service two years later. In terms of product development, Airbus is being pressed by Emirates to launch a reengined version of the A in Boeing will move into the 1-millionsq.

Low rate initial production of the X will occupy the site for around three years until the derivative transitions to the main production line. Boeing is modernizing the baseline production system in by introducing a robotic assembly process called AviationWeek. The production rate was raised to 10 per month from seven in December ; longer term, the rate is on track to grow to 12 per month in and 14 per month by In early , the production rate was raised to 42 Boeing is building a large facility for X wing assembly at its plant in Everett, Washington.

The dwindling backlog for the remains a concern, particularly since the recovery of the air cargo market is taking longer than expected. In response to weakening demand, Boeing reduced the production rate to 1. However, driven primarily by the build-up of the MAX, production of all s will rise to 52 per month in , with an interim step of 47 per month the year before.

Bombardier still claims it will deliver the first CS in the second half of , but many industry observers and customers doubt this will be achievable. The aircraft is to enter revenue service six months after the CS, likely sometime in Mitsubishi Aircraft has lifted the lid on a key program detail: its ramp-up plan. This gives a good indication of how many production slots the company has available between Assuming MHI will build at the rate of one aircraft a month at the time of certification and that the rate rises smoothly in the following five years, aircraft could be delivered by the second quarter of That would leave slots available by then, fewer than aircraft on which customers hold options.

Moreover, this calculation does not include 32 MRJs that Japan Airlines intends to order for delivery from The manufacturer has contracted for 10 sets of airframe assemblies to support volume production and is also looking at how to improve the type, which has dated during its 13 years of development. As to the more well-established aircraft builders, Embraer is on track to conduct the critical design review for the EE2, the first of its secondgeneration E-Jet family, later in as it looks to protect its share of the future seat regional and small airliner market.

The Brazilian manufacturer aims to introduce three versions of the E2 family by , and is completing detailed design work on the EE2 version, which is slated to enter service in the first half of The first E2 variant is the same size as the current baseline E, but revised with an all- gional jet, with entry into service now due in , two years behind the originally generous schedule.

Apart from technical challenges, Comac also has a continuing task of securing funding for its program, which the state is paying for. The stretched EE2, which is set to enter service in , is followed by the EE2 debuting in Aneo Brian Sumers Los Angeles U.

But if fuel prices continue to fall, will airlines stick with the strategies that have made them so much money? Or will stronger carriers reach for more market share and disrupt the status quo? Analysts will be watching three clusters of airlines closely next year to see how they respond to these elements and a better overall economy.

Will some airlines start or resume otherwise marginal routes? The situation is likely most interesting among the four largest U. Alternatively, the largest four carriers could continue to compete on important routes but essentially divide the domestic market in relatively even fashion. There are two other groups of airlines to watch in The four most important domestic U.

All four previously held an edge in on-board product and comfort, though the larger carriers have closed that gap in the past two years. Among the major U. In recent years, American, Delta and United have invested in their largest hubs, added fees, purchased new aircraft and slowly improved cabins by adding entertainment and power ports. Presumably, in a strong macroeconomic climate, these airlines could succeed next year by sticking to what works well.

That is when the mischief will occur. Under new management, it has shown a proclivity to compete against United, especially in Chicago, where both airlines operate hubs, and against Delta. Southwest may, however, take an aggressive stance against Virgin America, which seeks to build a focus location at Dallas Love Field, where Southwest is the market leader. None of the largest U. As a result, airports like those in Carlsbad and Crescent City, California, will be removed from major airline networks.

But if the issue worsens, airlines could have a problem feeding their hubs. Hawaiian, another niche U. Virgin America, however, may not be as well positioned for Virgin America also does not dominate any markets, including its hub airports of Los Angeles and San Francisco.

But if macroeconomic conditions remain strong, Virgin still could have a good year. At the bottom of the market, the three ultra-low-cost carriers could engage in more competition in Allegiant, which has long dominated tiny markets like Grand Forks, North Dakota, is increasingly moving into midsize cities such as Indianapolis, Pittsburgh and Cincinnati.

Allegiant has signaled it could be searching for more midsize airports underserved by legacy carriers. Frontier, which made the shift to ultra-low-cost in , has been seeking midsize airports and adding routes in Cincinnati and Cleveland, both to major cities and vacation destinations.

Frontier will spend much of trying to solidify its ultra-low-cost status. Spirit will take delivery of 15 new aircraft in , and spend much of the year in growth mode. All this increased competition assumes airlines will continue to have plenty of cash in Most analysts expect will be another strong year, but a terrorism event could change things quickly.

Brueckner, professor of economics at the University of California, Irvine. This environment will persist in And progress for revisions to key European Union EU regulations—including passenger-rights and slot rules and ground-handling directive—will depend on Spain and the U.

While might see the demise of some smaller airlines, the new year will probably start with cheers and champagne at Alitalia and Etihad Airways. It just signed up SAS as its 22nd code-share partner in Europe.

The debates will not cease in Optimized for the way you live and work. Now every week, with daily, tailored access to articles that affect you. For more details go to: stepinside. Norwegian Air Shuttle faced a setback in establishing its long-haul, low-cost model using Boeing s and crews partially sourced at non-EU bases, because of the U.

The upward capacity trend for LCCs will continue in , predicts Huttner. He sees strong growth within other segments of are delivered over the next decade. Currently, there are only routes in with network carriers and LCCs.

To improve if fuel prices remain low. Jetstar [wholly owned by Qantas] and Vueling [which Tony Tyler says. European carriers are projected to post a combined by IAG] are exceptions. NET Mega Market to see the remaining regulatory hurdles cleared, as this project is vital for airline expansion in Hong Kong.

This is one of the challenges facing most Asian airlines in —growing sufficiently to ensure they can grab their share of the action without creating capacity oversupply. Market data show that the balance tipped too far toward supply in , and now a readjustment is needed.

This is also the case in more mature markets such as Japan and Australasia, where saturated domestic services are driving carriers to look overseas for new opportunities, using a range of business models. Many of them are currently reviewing their expansion strategies to ensure they are not outpacing demand, and in it will become clear to what degree their plans have changed. In an effort to turn around spiraling losses, the government has bought out the other shareAviationWeek.

This will allow it to implement the major restructuring the government believes can make MAS an effective competitor again. This will obviously have competitive implications for other airlines, and MAS may look to new partnerships to serve long-haul markets such as Europe. Philippine Airlines and Thai Airways also are undertaking reviews that could see them recalibrate growth.

These airlines—and others in Southeast Asia—will still expand, but probably at a slower rate than they have previously. But challenges still loom for both of them. These subsidiaries could be a valuable strategic weapon, but only if they are breaking even. The key issue facing Cathay is the construction of a third runway at its Hong Kong hub. For example, AirAsia and its AirAsia X affiliate have both slowed their growth plans and aircraft deliveries.

While Asian LCCs in particular have been racking up massive narrowbody orders, the two Japanese majors have boosted the widebody backlogs of both Airbus and Boeing during the past 15 months. The challenge will be where to land these new aircraft, as despite recent expansions, capacity remains a headache at Tokyo-area airports. Haneda Airport is essentially full, leaving Narita International Airport as the best option for new services in But growth there will also be limited, making it essential that the government acts on proposals to expand airspace capacity over Tokyo.

Instead, they are looking to international markets for growth opportunities. Japanese government initiatives—and a weak yen—have helped increase demand for inbound travel in particular.

On the domestic front, any strategic or structural shifts by troubled Skymark Airlines will be closely watched. Also, the new wave of Japanese LCCs—launched by the major carriers—will continue to increase their footprint in domestic and international markets. A pickup in the global air cargo industry should boost the fortunes of the two large Korean carriers, which are home town of rival China Eastern Airlines.

The airline spent most of implementing a cost-cutting program that was probably the largest in the global industry this year. While some aspects are yet to be completed, the bulk of these changes will bear fruit in Qantas and its local rival Virgin Australia have pulled back from the capacity war in the domestic market that was hurting both airlines, and one of the key things to watch in will be whether these more rational growth levels are sustained.

Korean Airlines will be looking to improve its operating results, although currency fluctuations have made its net results extremely volatile recently. Chinese airlines have tended to avoid multiple daily frequencies on intercontinental services—putting them at a great disadvantage in luring business travelers.

But the low-cost sector is growing from a small base, so it represents more of a future problem for the big carriers. The airline has built up an impressive international network through strategic alliances with other airlines. It has also become a more viable competitor for Qantas domestically, particularly after taking over LCC Tigerair Australia this year. While the carrier has a sizable war chest, it is unlikely to make any rash moves as careful and sustainable planning is becoming a hallmark of this management team.

In , these three will not only add capacity, but also upgraded products. The role of Gulf carriers in international air transport is no longer only demonstrated by Emirates as the rescuer of the Airbus A program and principal enemy of others trying to expand long-haul market share in the region. Qatar and Etihad are no less ambitious in their expansion plans, and those two carriers drive product innovation at least to the same extent as their bigger rival. Residence consists of a living room, a separate bedroom and a bath.

The problem for other airlines lies in the perception that the Gulf carriers are now ahead in every aspect of service, damaging their well-established brands. The Arab Air Carrier Association AACO complained loudly at its most recent annual general meeting that protectionism is one of the key hurdles for its members. With European and Asian carriers openly admitting they cannot compete against the Gulf carriers, the latter are facing another wave of political opposition likely to become stronger in The carrier has been pressing Airbus to launch the Aneo and that decision is expected to come in Emirates President Tim Clark has been asking Airbus to make the additional investment in the program for some time now.

Given recent comments by Airbus Group Chief Financial Officer Harald Wilhelm that the program could be discontinued, Clark made clear what Emirates plans to do if Airbus adopts the reengining plan: Over time, the airline would replace all As currently on order with the new type. While Emirates and Qatar placed launch orders for the Boeing X at the Dubai Air Show, another major sales campaign likely will be decided in , in time for the next air show in Dubai.

Emirates is looking at another large order for the Airbus A or the Boeing for medium- to long-haul routes, including to destinations in Asia, Europe and Africa. But even with these improvements, airport infrastructure remains a problem.

He also emphasized that ATC improvements in Latin America are relative and inconsistent throughout the region. We have a huge lack of investment in aviation infrastructure in Latin America.

A booming middle class, poor road connections and large populations in big metropolitan areas create a seemingly ideal climate for air-travel growth. Latin American airlines reported a 6. Only Middle Eastern airlines grew faster. The bulk of those aircraft 1, will be single-aisle passenger aircraft, Airbus predicted. With political and economic pressures rising, many carriers are struggling to survive.

The consequences are already being felt. A year earlier, demand was up by At the same time, the total number of passengers carried grew by Transaero showed the highest increase on domestic routes for the 10 months— In an attempt to preserve access to air travel for the public, the government tries to keep airlines from raising fares.

Recent initiatives include a requirement to lower fares as the travel date comes nearer. But weakening demand is not the only issue Russian carriers are facing. Costs are going up at the same time. Rising aircraft lease rates are a main factor. Meanwhile, Ukraine-related sanctions have made the Russian market less attractive to foreign lessors. According to industry sources, most of them are now tightening the requirements for Russian clients and are expected to minimize their exposure in favor of more promising markets.

Russian lessors also face the risk of poor client discipline. In December VEB-Leasing announced it will call back two Sukhoi Superjet jets and three Bombardier Q turboprops from Yakutia Airlines due to payment delays, and warned that similar measures are being prepared against other clients.

The growing debt burden is also a serious threat for the top Russian carriers. In previous years, they were battling to increase market share through rapid expansion of seat capacity and price wars. The total debt grew by Two other large carriers—Transaero and UTair—also are trying to restructure their debt portfolios, minimizing short-term liabilities. The former signed an agreement with Sberbank in October to attract a consortium loan for 45 billion rubles.

The airline reported that since the beginning of the year the ratio between long-term and short-term loans changed from to Nevertheless, UTair announced a debt-service default for 2. The fourth-largest airline in terms of passengers carried in January-October —S7 Airlines— has the lowest debt burden, as it has stopped focusing on market share as a top priority for its development strategy.

While no cause for exuberant celebration, at least there is hope for a better Last September, cargo volumes saw a 4. North Amerretired all-cargo aircraft. The belly hold in new passenger aircraft such as the Boeing ER and can carry almost a third of the capacity of a Boeing freighter.

Conversely, another interesting trend is the growing demand for regional services in fast-developing economies where high economic growth mitigates high operational cost, driving demand for narrowbody passenger-to-freighter conversions. Nonetheless, with fuel prices tripling in , many freight forwarders and shippers have started sending cargo by sea rather than air. Ocean cargo can be up to 10 times cheaper than air cargo, but is far slower and less reliable.

In , the cost of oil began to drop again and with that came a noticeable return of shipments via air. Advantages of shipping by sea are not limited to cost. To compete, the air cargo industry has implemented similar tools and innovations. One such improvement is the goal of cutting average transit times by up to 48 hr. Many airlines have decided to abandon an operational focus on cargo but still plan to make use of surplus belly capacity.

Therefore, saw more of these carriers using general sales and service agents GSSA as de facto outsourced cargo departments. GSSAs, which had a poor reputation 20 years ago, have become more professional and have consolidated into global networks. As their networks increase, so do their Fraport value propositions.

Cargo operations remain constrained at mature airports though. Meanwhile, in places such as the United Arab Emirates, Dubai World Central is on track for having 16 cargo terminals with a million-ton capacity when it is completed in Multiple runway operations includes phase 1 wake recategorization Recat , a science-based reduction of the legacy weight-based in-trail distances according to weight approach speeds, wing characteristics and roll capabilities. UPS at Louisville says it saves 52, gal.

The FAA schedule shows that Houston Intercontinental and Hobby were to begin using Recat phase 1 by yearend , followed by seven more airports in Data communications will be highlighted by the rollout of controller-pilot data link for departure clearances DCL at 57 airport towers by the end of Hobby airports in the second half of , while extending the trial systems in Memphis and Newark. Gains in performance-based naviga- FAA priority NextGen projects over the next few years, including wake recategorization, should help reduce waiting queues at runways.

NET AviationWeek. The FAA says the upgrade will save airlines 4. Airlines for America A4A is analyzing and comparing the U. North Texas is second, and Northern California set to be third when it goes live in June No new metroplex rollouts are scheduled for , but the FAA shows Atlanta and Charlotte areas on track for mid Recent successes aside, some are skeptical that the FAA, based on its track record, has the wherewithal to see the entire NextGen project through.

However, as costs were escalating, controller workload was decreasing. Bolton began reviewing those recommendations soon after coming to the FAA after a career in the U. GER sits alongside the 7,nm G, while the 4,nm G and 6,nm G will continue in production after the G and G enter service.

The Canadian manufaclowing the market collapse in has turer is focusing investment on developing the ultra-large-cabin changed that. Dassault also has boosted its large-cabin offerings by The reason is clear. Together, ered in But the Brazilian manufacturer level-loads its Until it introduced the GV in , Gulfstream had produced engineering department, and once development of its KC only one model at a time. Narrowly segmenting the market made Cessna a powerWhen the ultra-long-range G was introduced in , house in the light jet category, but became a liability when it was an addition to the large-cabin lineup.

The subdividesales of smaller business jets were hit hardest by the downand-conquer strategy has clearly worked. While overall turn and production rates shrank.

Fiscal Dollars development focus company well ahead All Others All Others is on the large end Source: Aviation Week Intelligence Network.

The company began delivering the upgraded super-mid-size Challenger in August, and the updated large-cabin Challenger is to follow in the second quarter of Developed rapidly, both feature improved engines, avionics and cabins. The manufacturer almost matched Cessna on light-jet deliveries in with its Phenoms, but by the third quarter of the U.

As a result, Bombardier, Dassault and Gulfstream will increase their market share at the expense of Cessna and Embraer. But turboprop deliveries have held up through the downturn, and Textron plans to build on the strengths of both brands.

Army program to develop a long-endurance surveillance platform, but this was canceled in and the vehicle returned to the U. The ft. Powered by a Williams FJA, the kt. These promise to increase lift, reduce power required and cut fuel burn and emissions. Next year Clean Sky also plans to bench-test an electric tailrotor drive that will reduce weight, noise and vibration.

NASA the double-deck center section of a blended wing-body airliner, to combined bending and pressurization loads. Prseus uses dry fabric, reinforcing rods, resin infusion and out-of-autoclave curing with reduced tooling to produce large unitized panels that have uninterrupted load paths and are reinforced with stitching to arrest cracks.

Early work on the web interface has begun in Alaska. Here are some of the forecast highlights for each region. Widebody Wonders Heavy maintenance for widebody aircraft picks up in the U. Financial Finesse Four-engine aircraft such as the Rolls-Royce Trent powered Airbus A continue to feel heat due to operating costs and residual value concerns. Surplus Spend Supply Chain Risks Aircraft and engine teardowns will continue to increase the use of serviceable material.

But as long as fuel prices remain low, airlines will leverage used airframes to satisfy near-term demand, which increases especially for narrowbodies. Airlines continue to be vulnerable and risk disruptions to their MRO operations beyond the Tier One level. Savvy Savings Friendly Competition Innovative carriers such as EasyJet invest in new technologies to lower maintenance costs.

Logistics plays a role in this, too. Spanovich San Francisco Talk with anyone who is knowledgeable about the narrowbody airliner MRO market and the conversation quickly turns to cabin upgrades, where, it appears, the major MRO market opportunities in this segment continue to grow.

Much of this work, he points out, is due to the large number of narrowbody aircraft delivered between and now coming due for major airframe checks. This, he adds, represents a paradigm shift. So do our solutions. Today, Chromalloy can help you do more for less— from meeting tighter timelines and customer demands, to boosting production while reducing operational complexity and expense. Long live your engine. For more information visit chromalloy. To prepare for other opportunities in narrowbody work, Aeroman has just broken ground on a new meter ft.

A decision as to which widebodies is expected in early They are also compatible with the low-cost carrier business model. At the same time, Airbus A maintenance is expected to pick up, mainly due to increasing demand for this aircraft type in the aircraft lease market. But he also reports a trend toward dismantling relatively young aircraft by some operators, with the coming introduction of the Aneo and the MAX. Julapa Jagtiani , Bill Lang. Consumer credit regulation is an immensely varied subject that ranges from direct consumer protections such as fair lending laws and certain rules governing real estate settlement procedures to indirect protections such as requirements around disclosure of loan terms.

The web of consumer financial regulation also includes laws and regulations impacting the resolution of defaulted mortgages and consumer debt, including bankruptcy and foreclosure laws; and laws and regulations governing consumer credit reporting. It further encompasses regulation primarily aimed at ensuring the safety and soundness of financial institutions, such as stress testing requirements.

Shahid Mahmood. Anthony Pennington-cross. Log in with Facebook Log in with Google. Remember me on this computer. Enter the email address you signed up with and we’ll email you a reset link. Need an account?

 
 

 

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