Category: BizJet

Two Brokers Sentenced for Scheme To Sell Scrapped Aircraft Parts

On May 30, 2019, Carmine Coviello, former owner of Shelby Enterprises, an aircraft parts broker, was sentenced in U.S. District Court, District of New Jersey, to five years’ probation, restitution of $4,186,689, and a $100 special court assessment.

A day earlier, on May 29, Gideon Vaisman, owner and president of Tara Technology Corp., was sentenced in the same court to five years’ probation, a $35,000 fine, a $185,541.58 tax penalty/repayment, 80 hours of community service, and a $125 special court assessment. The New Jersey-based Tara Technology Corp is also an aircraft parts broker.
Coviello previously pleaded guilty to a one-count information that charged him with conspiring to commit wire fraud. He admitted that, from April 2005 through August 2009, he used his company to purchase used blades and vanes for jet engines from scrap metal dealers. In violation of Federal Aviation Administration (FAA) regulations, he had the jet engine parts “grit blasted” and “blended” at a metal shop to conceal that they had been scrapped and deemed non-airworthy by FAA-certificated repair stations. Coviello then used Shelby Enterprises to conduct sham sales of the illegally repaired blades and vanes to a company called Tara Aviation located in Guernsey, England. In fact, Tara Aviation was an “alter ego” of Tara Technology Corp., Vaisman’s company, where Coviello was the general sales manager. The sole purpose of these sales was to generate the fraudulent “trace” paperwork they needed to sell the parts. The sales occurred only on paper, and the parts never changed hands.
Vaisman previously pleaded guilty to a superseding information charging him with false material certifications and false personal income tax filings. He acknowledged that in 2009 he had created a falsified FAA Part 145 (Aircraft Repair Station) Material Certification and submitted it to the Agency. He also underreported approximately $67,000 in earned income to the Internal Revenue Service (IRS) for calendar year 2006.
DOT-OIG conducted this investigation with the IRS–Criminal Investigation Division, assisted by the FAA Flight Standards District Office in Saddle Brook, New Jersey.

Sanad Aerotech Expanding into Eastern Europe

Sanad Aerotech, a wholly owned subsidiary of Mubadala Investment Company, is expanding its network of international customers. The Abu Dhabi-based business has announced maintenance agreements Russian Nordwind and Bulgarian BH Air, two leading Eastern European operators.

The agreements come after Sanad Aerotech and Rolls-Royce announced a $6.5bn engine maintenance agreement including component repair to operators globally over a nine-year period and signify Sanad Aerotech’s collaboration with leading operators in Eastern Europe for the first time.

Nordwind is Russia’s 8th largest operator, flying scheduled and chartered flight to 85 destinations across Europe, Middle East, Africa and Latin America. This agreement sees Sanad Aerotech overhauling up to 14 IAE V2500 engines from now until 2022 – and is the Abu Dhabi-MRO’s first and only such agreement for V2500 engines with a Russian operator.

The Bulgarian charter airline BH Air primarily operates flights between northern and western Europe and Bulgaria. Sanad Aerotech will overhaul 5 IAE V2500 engines for the operator throughout 2019.

“We’re thrilled to increase our global footprint into the Eastern European region, expanding our work with leading operators with solid growth projections,” says, Sanad Aerotech CEO, Mansoor Janahi. “These deals represent confidence in our quality, reliability and globally competitive services that we offer from Abu Dhabi.”

Sanad Aerotech is an independent service provider of maintenance, repair and overhaul services for IAE customers around the world, providing its services to more than 300 V2500 engines since 2014 with year on year growth of more than 20 percent. T

Sanad Aerotech has doubled its operations three times in the past five years, and provided services directly to more than 10 international customers as well as supporting IAE in its delivery of long-term engine maintenance contracts.

 

Expect $8.7 Trillion Aerospace and Defense Market through 2028 According to Annual Boeing Forecast

Boeing predicts a strong commercial aviation industry, stable defense spending and the need to service all platforms throughout their lifecycle as driving forces to bolster a growing aerospace and defense market through 2028. The Boeing Market Outlook was released today at the Paris Air Show. The outlook values the aerospace and defense market at $8.7 trillion over the next decade, up from $8.1 trillion a year ago.

The Boeing Market Outlook (BMO) says there will be $3.1 trillion spent for commercial airplanes through 2028 as operators replace older jets with more capable and fuel-efficient models, and expand their fleets to accommodate the steady rise in air travel across emerging and established markets.

The BMO also projects $2.5 trillion of defense and space opportunities during the next decade as governments modernize military platforms and systems, pursue new technologies and capabilities and accelerate exploration from sea to space. The projected spending – spanning military aircraft, autonomous systems, satellites, spacecraft and other products – continues to be global in nature with 40 percent of expenditures expected to originate outside of the United States.

Supporting the defense, space and commercial platforms with lifecycle solutions will help grow the services market which they are valuing at $3.1 trillion through 2028.

“Aerospace and defense continues to be a healthy and growing industry over the long term, boosted by strong fundamentals across the commercial, defense and services sectors and demand that is geographically-diverse and more balanced between replacement and growth than ever before,” says Greg Smith, Boeing chief financial officer and executive vice president of Enterprise Performance & Strategy .

Boeing also unveiled its 2019 Commercial Market Outlook (CMO), a longer-term forecast that delves deeper into the market for commercial airplanes and services. The newest CMO shows growing passenger volumes and increasing airplane retirements will drive the need for 44,040 new jets, valued at $6.8 trillion over the next two decades and up 3 percent from a year ago. The global commercial airplane fleet will also sustain the need for aviation services valued at $9.1 trillion, leading to a total commercial market opportunity of $16 trillion through 2038.

“Time and again, commercial aviation has shown itself to be extremely resilient. Notwithstanding some recent moderation in passenger and cargo traffic growth, all indications are pointing to our industry sustaining its unprecedented streak of profitable expansion. In fact, we see a market that is broader, deeper and more balanced than we have seen in the past,” adds Randy Tinseth, Boeing Commercial Marketing vice president. “The healthy market fundamentals will fuel a doubling of the commercial fleet over the next two decades and a massive ecosystem of lifecycle solutions to maintain and support it.”

Of the new airplane deliveries, forecasters say 44 percent will go toward replacing aging aircraft while the rest will accommodate traffic growth. Together, the new jets support an industry where passenger traffic will grow an average 4.6 percent and cargo traffic will grow an average 4.2 percent. Factoring in the new airplanes and the jets that would remain in service, the global commercial fleet is expected to reach 50,660 airplanes by 2038. This is the first time the projected fleet has crested the 50,000 mark.

The biggest airplane segment remains single-aisles such as the currently-grounded 737 MAX, as operators are projected to demand 32,420 new airplanes. This $3.8 trillion market is driven in large part by the continued strength of low-cost carriers, healthy replacement demand and continuing growth in Asia Pacific.

In the widebody segment, Boeing forecasts demand for 8,340 new passenger airplanes valued at more than $2.6 trillion over the next twenty years. Widebody demand is spearheaded in part by a significant wave of older airplanes that will need to be replaced beginning in a few years. Bolstering the demand for larger aircraft, operators are expected to need 1,040 new large production freighters over the forecast period.

New Airplane Deliveries through 2038 by size

Airplane type

Seats

Total deliveries

Market value

Regional jets

90 and below

2,240

$105 billion

Single-aisle

90 and above

32,420

$3,775 billion

Widebody

8,340

$2,650 billion

Freighter widebody

———

1,040

$300 billion

Total

———

44,040

$6,800 billion

The global airplane fleet will continue to generate significant demand for aviation services, including supply chain support (parts and parts logistics), maintenance and engineering services, aircraft modifications and airline operations. Over the next 20 years, Boeing forecasts a $9.1 trillion market for commercial aviation services with annual growth of 4.2 percent.

“This is a very dynamic and exciting marketplace, one that is driven by new technology and a relentless drive for greater efficiency, reliability and safety,” says Tinseth. “On the technology front, we see operators using drones to inspect airplanes, and manufacturers delving into data analytics for insights to improve airplane maintenance and performance. Above all, operators are looking to providers to offer solutions that help them serve their customers more efficiently and reliably.

Major categories in the services forecast include the $2.4 trillion market for maintenance and engineering, which covers tasks required to maintain or restore the airworthiness of an aircraft and its systems, components and structures. Another major category is the $1.1 trillion market for flight operations, which covers services associated with the flight deck, cabin services, crew training and management and airplane operations.

Commercial Aviation Services through 2038 by service category

Service category

Market value

Corporate & External

$155 billion

Marketing & Planning

$545 billion

Flight Operations

$1,175 billion

Maintenance & Engineering

$2,400 billion

Ground & Cargo Operations

$4,825 billion

The Asia Pacific region, which includes China, will continue to lead the way in future growth, accounting for 40 percent of total airplane deliveries and 38 percent of total services value. North America and Europe round out the top three regions for future growth.

Commercial market through 2038 by region

Region

Airplane deliveries

 Services market

Asia Pacific

17,390

$3,480 billion

North America

9,130

$1,980 billion

Europe

8,990

$1,865 billion

Middle East

3,130

$790 billion

Latin America

2,960

$500 billion

Russia/C.I.S.

1,280

$270 billion

Africa

1,160

$215 billion

Total

44,040

$9,100 billion

Around the world, the growing commercial fleet will require a larger supply of pilots, technicians and crews. Boeing’s 2019 Pilot and Technician Outlook forecasts that the civil aviation industry will need nearly 2.5 million new aviation personnel between now and 2038.

The Commercial Market Outlook (CMO) is the longest-running jet forecast and is regarded as the most comprehensive analysis of the commercial aviation industry. The CMO and other Boeing market forecasts can be found at https://www.boeing.com/commercial/market/.

Sanad Aerotech and Rolls-Royce Announce $6.5bn Engine Maintenance Agreement

Aerospace Turbine Services & Solutions (TS&S), now rebranded as Sanad Aerotech has announced the conclusion of a landmark agreement with Rolls-Royce to become a Rolls-Royce Trent 700 Authorized Maintenance Center (AMC).

The agreement, which is valued at $6.5billion (AED 23 billion), will see Sanad Aerotech provide complete overhaul services for Trent 700 engines – including component repair – to operators globally, over a nine-year period (2019-2027). Sanad Aerotech will, under this agreement, more than triple the number of Trent 700 engines it services annually – from the current 22 to 75. This represents 25 percent of the global Trent 700 engine maintenance conducted annually, which will cement the company’s global position as the leading Trent 700 MRO service provider.

“For Sanad Aerotech, as a fully independent MRO with complete Trent 700 capabilities, becoming a Rolls-Royce Authorized Maintenance Centre is a major milestone in our three-decades-long legacy in Abu Dhabi. The magnitude of this agreement will benefit the UAE economy greatly over the coming nine years and reinforce Abu Dhabi’s position as a leading global aerospace hub,” says Sanad Aerotech’s CEO, Mansoor Janahi.

The Abu Dhabi-based MRO has overhauled more than 90 Trent 700 engines to date. With the new agreement, this number will increase to more than 600 over the contract period. To meet the increased load, the MRO is growing its workforce by more than 40 percent to 500 aircraft engineers and technicians.

“This agreement involves an upscaling of our capacities for Trent 700, benefiting both Rolls-Royce and other existing customers through access to world-class capabilities and a highly-skilled multinational workforce that overhaul engines to the highest quality,” says Janahi. “This landmark agreement also introduces healthy competition into the overhaul marketplace and is testament to our track record of quality, safety and timely delivery which Sanad Aerotech has consistently demonstrated since 2013 when we first started the overhaul of Trent 700 engines.”

The addition of Sanad Aerotech supports the growth of Rolls-Royce’s maintenance capacity and also supports its wider services strategy to develop an increasingly capable, competitive and flexible CareNetwork. The Trent 700 currently powers more than 800 Airbus A330s, flying with 83 operators worldwide.

“It’s great to welcome Sanad Aerotech to our Global CareNetwork. As our family of Trent engines continues to grow, we are expanding our services network and continually reducing engine maintenance turnaround times, so airlines can keep passengers flying,” Dominic Horwood, Rolls-Royce, chief customer officer – Civil Aerospace, says. “Sanad Aerotech has a proven track record in working with the Trent 700, and will be a valuable addition to our network.”

Sanad Aerotech’s 330+ strong workforce, of over 30 different nationalities, will carry out the Trent 700 maintenance in the United Arab Emirates at the MRO’s facilities at Abu Dhabi International Airport.

West Star Names Lowe Satellite Manager at PWK

West Star Aviation has named John Lowe as the new satellite manager at their Chicago, Ill. (PWK) location.  Lowe will be responsible for the managerial oversight of the 24/7 on call mobile facility and staff.

Lowe has 36 years of aviation experience and has previously held various leadership roles in the industry as crew chief, director of maintenance, chief inspector and accounts manager.

“I’m thankful for the opportunity to join such an amazing team and a company with a great reputation,” says Lowe. “I’m looking forward to continuing my career here and being part of the company’s advancement within the industry,” Lowe continued.

“We are excited to welcome John to the West Star Aviation team.  His valuable experience and expertise will be an added benefit to our customers at our Chicago facility,” said John Mansfield, manager of Satellite Operations & MRT.

 

Southeast Aerospace Secures Transport Canada and Colombia Aeronautica Civil Approval on Part 25 ADS-B STC

Southeast Aerospace, located at Orlando Melbourne International Airport, has received Transport Canada Civil (TCCA) and Colombia Aeronautica Civil (UAEAC) aviation approval of their ADS-B Part 25 Approved Model List (AML) Supplement Type Certificate (STC).

SEA says this solution is a flexible and affordable ADS-B solution to facilitate continued flight in US airspace upon the January 1st 2020 FAA mandate for the Canadian and Columbian market.

ADS-B STC #ST00835DE is available for non-TCAS II aircraft needing to meet the mandate for around $50,000 installed. This cost effective ADS-B solution consists of dual Garmin transponders GTX-3X5R and Gables G7614/G7534 control head, and can be purchased through an authorized Garmin dealer.

SEA also announced an expanded AML for their Part 29 ADS-B STC #SR00925DE which includes the Airbus EC225, EC155, AS332, and AS365 series; Agusta AW139; Bell 212, 205, 222, 230 and 430 Series; Columbia Helicopter Model 234 and 107-II; Erickson S-64A and Sikorsky S-76 and S-92A series.

JSSI Names Ash Reddy to New Role of VP Global Strategy

Jet Support Serv : Ash Reddy shoot. Chicago IL. April 29, 2019 Photo by Andrew Collings.

Jet Support Services, Inc. (JSSI) has appointed Ash Reddy to the new role of vice president, global strategy and corporate development.

Reddy will be responsible for identifying, developing and executing organic and inorganic strategic initiatives globally for all JSSI business units. The new role includes long-range strategic planning, driving synergies across the organization and linking business trends to enterprise strategies and opportunities.

“It gives me great pleasure to welcome Ash to our team. His strong background in corporate strategy, mergers and acquisitions, and new business development will support him well in this new role,” says Neil W. Book, president and CEO for JSSI. “As we continue to grow and expand the business, our ability to integrate and develop strategic opportunities becomes increasingly important. I am confident that Ash will be very successful in this new leadership role to help us further expand our products and services.”

Reddy was most recently with Mars, Inc., where he was responsible for leading the global strategy development process and a variety of growth initiatives for the company’s confectionery business, based in Chicago. An Illinois Wesleyan University graduate with a bachelor’s degree in economics, Reddy also holds a master’s in finance from the University of Notre Dame. Prior to his role at Mars, Reddy spent time at Accenture within their corporate development team and was tasked with driving the firm’s acquisition activity. He began his career in the valuation services group at Grant Thornton.

“My experience and professional interests align well with JSSI objectives as we enter into this next phase of growth. The unique position of JSSI in the business aviation industry, along with the caliber of our team, have really impressed me and I know we are just scratching the surface,” says

Reddy. “I am looking forward to playing a role in helping elevate our already strong brand by accelerating the company’s strategic agenda, while maintaining our customer-centric focus. I could not be more excited by the opportunity.”

Air Plains Services Now Offers Genesys Aerosystems Autopilots   

Air Plains Services has added Genesys Aerosystems autopilots to its  list of system and avionics upgrade suppliers, further expanding available choices in planning upgrade projects.

“The long list of Genesys autopilots gives Air Plains even more options for meeting the varied requirements and budgets of our customers looking to keep their cockpit systems updated with the latest technology,” said Eric Papon, Air Plains avionics service manager. “The S-TEC 3100 digital flight control system has a lot of capability and is certified for more than 100 mostly Cessna, Beechcraft and Piper aircraft models.”

The S-TEC 3100 is a 2-axis attitude based, digital autopilot (3-axis available on some models) and brings enhanced features such as automatic trim, envelope protection and alerting, one button straight and level recovery, indicated airspeed hold and altitude preselect. With a built-in AHRS, the 3100 can also support a variety of panel configurations, both glass, and analog six-pack.

StandardAero Adds BizAv Engine MRO Capacity at Fleetlands, U.K. Facility

 StandardAero’s Fleetlands, U.K., engine MRO facility has increased capacity by 50 percent to support its TFE731 engine line MRO services. As a result, StandardAero can fully process engine overhauls and has recently completed a pair of TFE731 Major Periodic Inspection (MPI) within established U.S. shop turnaround time for a European customer. In addition, and since the beginning of this year, the company has also added capabilities including technicians, tooling, workstations and hardware, while adopting best practices developed over 40 years of servicing TFE731 engines at its U.S. based facilities.

StandardAero is also continuing to invest into PW300-series capabilities at Fleetlands by adding additional capacity for PW305, PW307 and PW308 engine model MRO services, including rental engines that have been procured to support operators who may not have OEM rental coverage.

On top of investments to expand and grow its engine MRO services, StandardAero has added new customer offices to provide operators with convenient work spaces on site and near the engine shop. Additionally, a new Mobile Services Center has been created at the Fleetlands site, as a base for launching mobile support teams across the region.

The facility provides an additional benefit to EMEAI operators as it saves the time and costs associated with shipping engines to North America facilities.

“Operators are pleased with the quality service and in-region TFE capability provided at our Fleetlands UK facility,” said Marc Drobny, president of StandardAero Business Aviation.  “We are now working with our U.S. shops to adopt our FASTLANE processes and are on a path to offer the same world-class turn times for TFE731 engine events at Fleetlands.”

Since being awarded the only Honeywell TFE731 heavy maintenance authorization in the EMEAI region in December of 2017, StandardAero selected Fleetlands as its location in February of 2018 and completed its first overhaul there in May of 2018. In February of this year, StandardAero achieved EASA certification and also received test cell certification from Honeywell.

“We are fully ready to provide our EMEA operators with bigger, better, bolder capabilities and invite operators to bring it on for services at Fleetlands,” Drobny added.

StandardAero has completed more TFE731 scheduled maintenance events than any service provider in the world and surpassed its 20,000th event late last year.

K5-Aviation Adds a Third 2Ku System from Gogo Business Aviation

Gogo announced it will install a third 2Ku system on an Airbus A319 business jet operated by K5-Aviation, a leading operator of ACJ aircraft. The installation will be the first to be done on an Airbus ACJ319neo, and it is scheduled to be completed this summer.

The installation design and system integration will be managed by Fokker Techniek B.V. under its ACJ319 EASA STC, and will be completed at its facilities in Woensdrecht, The Netherlands as part of the green ACJ319neo aircraft VIP completion.

“[This] announcement shows how strongly K5-Aviation believes in our 2Ku system and underscores how well the first two of our 2Ku systems they installed are performing,” said Sergio Aguirre – president of Gogo Business Aviation. “2Ku is the best performing connectivity solution in commercial aviation and we are pleased that our customers who fly large business jets are now able to enjoy the same terrific experience.”

Gogo’s 2Ku technology is the leading in-flight connectivity technology available to business aviation customers flying larger private aircraft and on commercial airlines operating globally.

“Our passengers can stay connected virtually anywhere we fly around the globe and they are having an incredible connectivity experience thanks to Gogo’s 2Ku system,” said Luca Madone of K5-Aviation. “The capabilities of Gogo’s 2Ku system and network are unmatched anywhere else in business aviation which allows passengers to do virtually anything online while in flight that they do on the ground. Gogo’s 2Ku system seamlessly integrates with our ultra-modern Alster Aero CMS/IFE system which we have installed on our aircraft to give our passengers an online experience never before seen in aviation.”

“We’ve installed and certified the Gogo 2Ku technology successfully on two of our completed Airbus VIP aircraft and the EASA STC has greatly enhanced our business,” said Johan van Dorst, director of sales for Fokker Techniek B.V. “Having access to the internet, plus being connected and available, is critical for passengers, and the demand for bandwidth will only increase. We are proud to be able to provide our customers with an excellent connectivity experience.”