China to Sanction U.S. Aerospace Manufacturers

The Chinese Government has said that China will sanction several US defense companies for selling arms to Taiwan. All three companies are active in the aerospace realm.

On Monday, Chinese Ministry of Foreign Affairs spokesperson Zhao Lijian called on the U.S. to break ties with the government on Taipei, and he announced plans to sanction Lockheed Martin, Raytheon Technologies and Boeing Defense. He did not provide further details of the sanctions, and we’ve waited this week to learn of the details, but none have yet been released.

Zhao’s specificity in naming Boeing Defense could mean that Boeing Commercial Aircraft Group is not affected by the sanctions. This is mere supposition, though; the actual reach of the sanctions is not yet known.

Adam Ni, director of the China Policy Center in Canberra, Australia, suggested that he “suspect[s] the strategy will not be formal sanctions, but rather through administrative regulatory means.” This could include punitive tariffs or similar means that effectively prevent certain business with these sanctioned entities.

We will continue to watch, to learn how this might affect other U.S. aerospace companies.

Battery Shipments Could Get Tougher

Last week, Boeing issued a warning about transporting lithium batteries on aircraft.  The news media is reporting that:

The guidance sent to airlines around the globe urged that they not carry the batteries as cargo “until safer methods of packaging and transport are established and implemented,” Boeing spokesman Doug Alder told The Associated Press in an email.

IATA has published its own guidance on the subject.  In addition to republishing ICAO’s dangerous goods shipping requirements, IATA has also published its own lithium battery risk mitigation guide for air carriers.

The Portable Rechargeable Battery Association (PRBA) issued a press release on July 20th in response to the Boeing missive that stated:

PRBA–The Rechargeable Battery Association shares Boeing’s goal of improving the safe transport of bulk shipments of lithium ion batteries by air. We look forward to continuing our engagement with Boeing and other aircraft manufacturers, the airline industry and regulators at the ICAO battery meeting in late July to discuss battery transportation issues, specifically a new and unprecedented lithium ion battery standard and packaging criteria.

Ongoing international regulatory initiatives, along with the development of innovative fire suppression technologies and more robust international enforcement efforts are reducing risk and advancing battery safety. Together, these ambitious efforts to improve transportation safety mitigate the need to prohibit air shipments of lithium ion batteries used daily in thousands of consumer, aerospace, medical, military, transportation and environmental applications.

Safety remains PRBA’s No. 1 priority and our members are proud of their outstanding safety record. We also have supported ICAO’s recent regulatory initiatives on lithium batteries, including new stringent packaging and labelling requirements. Billions of lithium ion batteries have been shipped safely by all modes of transportation over the last 25 years. PRBA is not aware of a single incident involving the transport by air of a fully compliant shipment of lithium ion batteries.

PRBA also remains concerned that certification of aircraft fail to consider the unique hazards associated with the carriage of any dangerous goods, not just those associated with lithium batteries.

The FAA continues to press for compliance in this arena, and has announced multiple civil penalty actions related to improper shipment of lithium batteries in the past year.

Distributors shipping lithium batteries should make sure that the batteries are treated as dangerous goods and properly prepared for shipment, but distributors should also be aware that some carriers could refuse to carry lithium batteries in the wake of the Boeing all-operators letter.  It appears that some carriers have already banned the bulk shipment of batteries:

Several airlines have already banned bulk battery shipments from the bellyhold, including Cathay Pacific, United, IAG Cargo and Qantas.

Arrival of the 787 Dreamliner

The much-anticipated arrival of the Boeing 787 Dreamliner is upon us! On September 26th, ANA will be receiving the first delivery of the aircraft, and it’s inaugural flight to Japan will be broadcast live online, September 28th at 8:30 a.m. JDT (September 27th at 7:30 p.m. EDT).

Several upgrades have been made to the 787 to make it more environmentally-friendly, including design changes that increase fuel efficiency by 20%. The Dreamliner is also composed of fewer hazardous materials, making it easier to recycle the aircraft upon its end-of-life and further minimizing the dangers to human health associated with both production and operation of the aircraft. Inside the cabin, fluorescent lamps have been replaced with light emitting diodes (LED) which are lighter, consume less power, and last longer than their predecessors. LED lighting is less harsh, and Boeing says this creates a more relaxing space, enhancing the comfort of passengers.

Several characteristics of the 787 are designed to increase passenger comfort including:

–         bigger windows allowing non-window seat passengers to look out;

–         spacious storage to allow for more luggage to be carried onboard; and

–         new filters helping remove irritants and gaseous contaminants leading to a decrease in throat, eye and nose irritation.

These features, among others, are being touted as features that will help create a more luxurious way to travel both for passengers and the environment.

The 787 will provide an exciting new platform for parts sales!

Atlas Air Cancels Part of their 747-8 Order

Atlas Air has chosen to cancel part of their 747-8 order, by exercising their termination rights.  This cuts their order from 12 to 9.  Atlas expressed their intent to receive three of these aircraft in October and November, and said that they remain committed to the 747-8.

The Atlas 8-K that was filed yesterday (September 21) with the Securities and Exchange Commission explains:

On September 16, 2011, Atlas Air, Inc. (“Atlas”), a wholly-owned subsidiary of Atlas Air Worldwide Holdings, Inc. (“AAWW”), notified The Boeing Company (“Boeing”) of its decision to exercise its right under Purchase Agreement No. 3134, dated as of September 8, 2006, between Atlas and Boeing (the “Agreement”) to terminate such Agreement with respect to the first three 747-8F aircraft scheduled to be delivered to Atlas under the Agreement. Atlas terminated the Agreement with respect to these three aircraft due to lengthy delays in delivery of the aircraft and performance considerations. Nine 747-8F aircraft remain on order under the Agreement, as well as one option and 13 purchase rights.

Just a week ago, on September 16th, Cargolux Airlines decided to to delay taking its first two 747-8s.  They are supposed to be Boeing’s launch customer for the aircraft.  Reports suggest that Cargolux still intends to accept the aircraft.

Boeing’s Environmental Initiatives

On July 19, Boeing’s Vice President of Environmental, Health and Safety, Mary Armstrong, was a keynote speaker at the 2011 ASA/AFRA Conference.

Armstrong spoke at a joint session of the memberships of both the Aviation Suppliers Association (ASA) and the Aircraft Fleet Recycling Association (AFRA).  Her speech made it clear that Boeing is acting as a leader in aviation’s efforts to  achieve better environmental performance.

Boeing has been taking steps to reduce energy use, and to reduce the production of hazardous materials.  This has lead to significant measurable reductions in both areas at Boeing.  Boeing is now working on reducing the waste-to-landfill to zero.  They have already achieved this at four locations (Huntsville, Philadelphia, Salt Lake City and South Carolina.  In South Carolina, the Boeing facility has gone to 100% renewable energy, including a ten acre solar roof and using biomass for remaining energy needs.

She discussed Boeing and AFRA’s efforts at lifecycle environmental footprint reduction.  The aerospace industry has taken a cradle-to-grave approach, trying to minimize environmental footprint throughout the aircraft’s lifecycle.

Armstrong explained that for Boeing, environmental performance starts with design.  Boeing is focused on increasing the use of recycled materials in products and in tooling.  They are designing their Aerospace products to reduce or eliminate the use of hazardous materials and the generation of hazardous wastes.

They are switching to non-chromated paints and primers for their aircraft.  This is a significant change from traditional coatings that used chrome, which is a hazardous material.

Boeing is participating in a new group known as the International Aerospace Environmental Group.  This group is made of aerospace manufacturers working together to share best practices that will permit them to achieve better environmental performance.  One of their goals is to create a consistent process for suppliers to list their chemical bill of materials.  This will provide the framework against which the manufacturers can reduce their adverse environmental impact.

Armstrong explained that aviation produces about 2% of the global carbon emissions, if you take into account all of the aviation-related sources.  Therefore the industry feels compelled to focus on control and limitation of carbon growth.  The 787 and 747-8 aircraft will both be cleaner and quieter.  The 787 is designed to reduce carbon emissions by 20% and the 747-8 should reduce carbon emissions by 16%.

Boeing is testing biofuels in an effort to identify sustainable biofuels.  By sustainable, they mean crops that will not compete for water or land with food crops.  They have been engaged in test flights since 2008, and are identifying fuels that will work as well as or even better than pure Jet-A.  They are working to develop 50/50 blends and the standards for this have been recently approved by ASTM.

Boeing is also working with the FAA on the development of modern air traffic management systems.  Implementation of improvements in this area could cut 12% or more off of aviation’s carbon emission total.

Boeing wants to be an environmental leader, so the next step, which Boeing and AFRA are both taking together, is to undertake a cradle-to-cradle approach.  This means thinking about where the recycled materials from an aircraft will go, and undertaking strategies that will permit the aviation industry to recover recycled aerospace materials for use within the industry.

Boeing is working with AFRA and ASA to develop better strategies for reclaiming materials.

Armstrong praised AFRAs BMP efforts.  She explained that she expects the draft Recycling BMP to lead to an effective mechanism for improving effectiveness and efficiency in recycling of aircraft materials.

Between 2010 and 2030, the aviation industry is expected to add 33,500 new airplanes and half of these will replace existing aircraft.  In the next ten years, the industry expects a significant number of aircraft retirements, all over the world.  These older aircraft will yield to more economical and environmental aircraft, but their retirements create a recycling challenge.

Boeing is engaged in a number of pilot projects for environmental improvement.  These projects include:

  • Recycling carbon fiber, for interior components, for non-structural applications and for tooling
  • Recycling interior materials, like aircraft carpet to reduce landfill materials

Boeing is working on technologies that will permit creation of carpet tiles from recycled carpet.  There is a pilot project for testing these carpet tiles with Southwest Airlines right now.

Boeing is asking its supply base partners to adopt environmental management systems similar to ISO 14001 (although they need not be registered to ISO 14001).  Boeing expects to address environmental responsibility, in the future, as an element to consider for awarding contracts to partners.

One thing that Armstrong did not mention in her speech is that Boeing is one of the founding members of AFRA, and AFRA’s goals include a variety of environmental and recycling efforts.  Through AFRA Boeing has achieved some significant advances by publishing Best Management Practices related to aircraft materials recycling.

Boeing is expanding its understanding and expanding its collaborations in order to create new value for customers and for the environment.

Additive Manufacturing: A New Paradigm for Aircraft Parts?

Could the aircraft parts you sell be manufactured on a printer?  The latest aircraft parts manufacturing technologies that are being developed are using equipment very much like laser printer to build complete aircraft parts.  The research arm of EADS (the parent company to Airbus) has begun using futuristic additive manufacturing technology to make more cost-effective and fuel-efficient aircraft parts.

The most common form of additive manufacturing, also known as 3D printing, works by using software that splits three-dimensional designs into extremely thin layers. The printer then emits a thin layer of powder and, working from that software, uses a laser to harden the layers into the designed shape, stacking each layer on top of the previous one.

Additive manufacturing can reduce materials costs by emitting almost no wasted materials (as opposed to the unused trimmings left over from machining a part from a solid block) and it can also permit design adjustments based on software changes (permitting easy transfer from design-to-manufacturing).

The basic technology of additive manufacturing has been in use since the 1990s. Until recently, however, its utility was largely limited to building non-functional prototypes to test out designs that would ultimately be built using traditional manufacturing techniques. While the simplest form of 3D printing still relies on plastics to create non-functional models, printers are becoming capable of using more complex materials, including various metals, to produce useful products. Some researchers have even speculated that the printers will one day be able to use human tissue, enabling them to “print” organs and obviate the need for donors. Further advances are still necessary before the machines will be optimized to achieve the necessary consistency in output necessary for more widespread use.

A handful of companies, mostly in Europe and the United States, are currently producing and selling 3D printers, while others specialize in using these techniques to manufacture customized products for consumers. Though the technology is still prohibitively expensive for most purposes, costs have been decreasing, and there are currently “desktop” size printers on the market for $10,000. For large, industrial models, however, the price approaches $1 million. Because this technology is not yet considered “cost-effective” for any major manufacturing operation, many companies using printers to manufacture end-user products are subsidized by public funds.

The EADS facility in Filton, England, for example, represents a partnership with the Centre for Additive Layer Manufacturing (CALM) at the University of Exeter. That research group is funded by the European Regional Development Fund ERDF, the South West Regional Development Agency RDA, and the University of Exeter, in addition to EADS.

The joint venture has already yielded important scientific advances. The company has used software associated with additive manufacturing to streamline landing gear components into a design that might not have been possible with traditional methods. The resulting functional pieces, which can be made out of any metal powder, have reduced the weight of the original design by about half, by cutting out excess material that cannot reasonably be eliminated when using other manufacturing processes.

Airbus is currently experimenting with a few other types of small parts made through this process. The research team in Filton has already identified about 1,000 aircraft parts that could be made using additive manufacturing. Ultimately, Dan Johns, an EADS executive who runs the CALM project, hopes to bring the technology to a larger scale that will eventually enable companies to “print” full aircraft wings.

These lighter-weight components, once they are broadly incorporated, will save money not only on materials but also will save fuel costs for operators. By some estimates, reducing the weight of an aircraft by only one pound can save the airline over $50,000 in fuel over the course of the aircraft’s estimated 30-year life span. As a result. several companies, including Bentley, Boeing, Delphi, MTT, and Virgin Atlantic, are funding an additional research operation focused on implementing additive manufacturing at Loughborough University in England.

This technology also has the potential to permit manufacturers to better serve customer needs by making it possible to produce parts “on-demand” from a manufacturing software library.

Although the profitability for individual parts manufacturers to start buying 3D printers for production purposes is still in question, companies should pay close attention to developments as it becomes increasingly clear that additive manufacturing could play a role in the future of the aviation industry.

Bruce Sechler Honored as the 2008 Winner of the Edward J Glueckler Award

In front of 260 of his friends and colleagues, Bruce Sechler was honored with the 2008 Edward J. Glueckler Award by the Aviation Suppliers Association (ASA) Board of Directors at ASA’s Annual Conference.

Bruce Sechler, a Senior Investigator at Boeing Commercial Airplanes, has been a staunch supporter of the ideals of the Association, and has offered assistance over his career to many in the industry who needed help with parts approval issues.

ASA President Michele Dickstein presented the award and explained that, “Bruce’s leadership within ASA and through out industry made him a perfect choice for the Glueckler Award. Sechler has had a positive impact on the association, through his ability to share his extensive technical knowledge and build personal relationships with our global members. And we are pleased to present this award to a longtime member of ASA and the aviation industry.”

Each year, the Edward J. Glueckler Award is presented at ASA’s Annual Conference in recognition of outstanding commitment, dedication, and contribution to the Association and the aviation industry. The award is named for the founder and first President of the Aviation Suppliers Association.

Mr. Glueckler helped present the award.  “Bruce is a true industry leader in his dedication to safety and education within the commercial aviation sector. His passion for educating the industry on the topic of unapproved parts has helped to raise the level of awareness among suppliers, manufacturers, and air carriers around the world.”

The Aviation Suppliers Association (ASA), based in Washington, D.C., is a not-for-profit trade association, representing more than 330 global member companies that purchase and distribute aircraft parts worldwide. ASA’s Board of Directors and Corporate Officers focus the organizations energies on regulatory and legal matters such as safety, federal compliance, and ethical business practices that impact the aviation parts supply industry. As a result of the groups auditing capabilities, over 240 companies have received global accreditation since 1996. Member companies include: distributors, suppliers, surplus sales organizations, repair stations, manufacturers, air carriers and other companies that provide services to the aviation parts supply industry. In addition, ASA has been recognized by the Federal Aviation Administration (FAA) for Database Management, Industry Voluntary Accreditations, and contributes to House and Senate proceedings with an aviation focus. ASA has also been featured in Aviation Maintenance, Aircraft Technology Engineering & Maintenance, Overhaul & Maintenance, SpeedNews, and USA Today, along with other business journals and leading industry publications. Most recently, the organization participated in and supported the Aircraft Fleet Recycling Association (AFRA) aircraft disassembly exhibit showcased this July at the 2008 Farnborough Air Show held in the United Kingdom. To learn more about ASA, accreditation, and the annual conference scheduled for July of 2009 which is sponsored by many key aviation companies visit the associations web site at: http://www.aviationsuppliers.org