According to Electra, the aircraft is able to operate with ground rolls of 150 feet, capable of carrying up to nine passengers or 2,500 pounds of cargo, and sports a range of 500 nm.

The company did not announce the contract amount that was awarded under the Naval Air Systems Command (NAVAIR) but said it is expected to continue through the end of the year.

“The contract allows Electra to partner with the U.S. Navy and its stakeholders to explore the use cases for Electra’s eSTOL technology, as well as potential aircraft configuration extensions, to enhance the efficiency of delivering military logistics services in environments with minimal infrastructure or other operational challenges,” Electra spokesperson Barbara Zadina told FLYING.

• READ MORE: Electra.aero Nabs $1.9M Army Contract for Electric Aircraft Testing

The contract announcement comes days after the company reported the U.S. Army had issued a $1.9 million contract to experiment with the hybrid-electric aircraft to perform powered wind tunnel testing.

“With our differentiated combination of hybrid-electric propulsion and a blown fixed wing, we can offer Pacific theater-relevant payloads and ranges, and the ability to operate from rough, soccer-field-sized spaces as well as many naval vessels and adjacent assets, all from day one,”  Ben Marchionna, Electra’s director of technology and innovation, said in a statement. 

• READ MORE: Electra.aero Surpasses 2000 Orders for Hybrid-Electric Aircraft

In addition to logistic utility, the company said the eSTOL aircraft could also enable expeditionary power generation, mesh networking, and potentially serve as an essential node for Joint All-Domain Command and Control (JADC2) employment.

“These are all game changers for force modernization initiatives within the Navy and Marine Corps,” Marchionna said.

The post Navy to Explore Use of eSTOL Aircraft, Issues Contract to Electra appeared first on FLYING Magazine.

In a move that could have major implications for the company and the drone industry at large, DJI this week unveiled FlyCart 30, its first delivery drone. Aptly named for its 30-kilogram (66-pound) payload in standard configuration, the new product marks DJI’s entry into a largely untapped market for delivery via the small, buzzing aircraft.

For now, the new model will only be available in China. But DJI told FLYING it will consider launches in other markets down the line.

Until now, DJI made drones almost exclusively for hobbyists and industrial enterprise customers. Most of its designs are camera drones equipped with high-definition lenses, video recorders, and other aerial imaging equipment. Some models include thermal or infrared sensors, mapping software, advanced communications, and other features designed for surveillance and inspection.

The firm’s camera drones are considered to be very high quality. They’ve been used to film several high-profile TV shows, including Game of Thrones, The Amazing Race, Better Call Saul, and American Ninja Warrior. Other DJI camera drones include the high-performance Mavic, the low-cost Spark, and the hexarotor Flame Wheel.

None of them, however, can deliver a package or an order of chicken wings. DJI was founded in 2006, years before the likes of Amazon Prime Air or Alphabet’s Wing began exploring drone delivery. Those firms have had decadelong runways to develop their services. But DJI has decided it’s finally ready to compete.

So, let’s break down the new drone and its implications for the industry.

The Specs

Off the shelf, FlyCart 30 will be one of the largest short-range delivery drones on the market. But other features, such as a configurable delivery mechanism, dual-control pilot capabilities, and a rare level of durability (more on these in a bit), are what really make this model stand out.

FlyCart 30 uses a four-axis, eight-propeller multirotor design powered by a pair of proprietary Intelligent Flight Batteries. With both batteries installed, it can carry up to 66 pounds of cargo at close to 45 mph over a range of about 10 sm (8.7 nm), staying airborne for as long as 18 minutes. That range extends to about 12 sm (10.8 nm) with an empty load.

Customers moving heavier cargo can remove one of the two batteries to give the drone a maximum payload of 40 kilograms (88 pounds). However, DJI recommends using both—if one fails during flight, the other can power the rest of the mission on its own.

Redundancy is just one of many safety features aboard FlyCart 30. The model also comes equipped with an intelligent obstacle detect-and-avoid software, dual radar capabilities, an ADS-B signal receiver, and a built-in parachute for controlled descent in emergencies. Operators can even preprogram the drone with emergency landing points before sending it on its route.

It comes equipped with DJI’s O3 image transmission system, which broadcasts live video, and can transmit a strong signal up to 12 sm (10.8 nm) away, opening up beyond visual line of sight (BVLOS) operations. The model is also compatible with the company’s 4G cellular dongle.

Unlike most delivery drones, which in the U.S. typically fly below 400 feet, FlyCart 30 can operate nearly 10,000 feet in the air, allowing it to serve China’s mountainous landscape. And like other DJI models, it’s foldable, making it incredibly portable.

Now let’s get into the really cool stuff.

Most drones get performance anxiety when flying in rain or high winds, but FlyCart 30 isn’t most drones. It’s billed as an “all-weather machine” and rated IP55, meaning it protects against dust and moderate rain. It can also fly in winds up to 26 mph (22.5 knots) and in temperatures between minus-4 and 113 degrees Fahrenheit. So, unlike many other drone delivery firms, DJI’s operations won’t be limited to clear skies.

A second neat feature is the drone’s dual-control piloting mechanism. Companies typically seek to assign as many drones as possible to a pilot, but DJI came up with a way to enable the reverse. So long as each has a controller, operators can hand over control of the drone to one another with the push of a button, without interrupting flight. This enables deliveries over longer distances (or BVLOS of one of the pilots), circumvents signal disturbances, and adds another layer of safety.

Flying, though, is only half the battle in drone delivery. So DJI also gave FlyCart 30 a swappable delivery mechanism, with the option to use either a cargo box or a winch-and-crane system.

The first option uses standard-sized expanded polypropylene (EPP) containers, which can hold up to 2.5 cubic feet of cargo and are commonly used in the returnable packaging industry. It can be installed or removed in less than three minutes for a speedy turnaround time.

Alternatively, customers can opt for the winch and crane, which uses a 65-foot cable line to lower items to the ground from altitude. The system can be controlled manually or automatically, but the drone releases cargo on its own when it touches the ground. This configuration could be used in locations where it’s unsafe to land, such as a wooded area.

Yet another fascinating feature is FlyCart 30’s intelligent “anti-sway” system. The advanced technology detects the drone’s weight and center of gravity while airborne, returning it to level flight whenever it sways or tilts.

For now, FlyCart 30 is available only in China for $17,000. The purchase price includes the aircraft, two batteries, a charging hub with cables, and an RC Plus remote controller. The controller displays DJI’s Pilot 2 program, which shows real-time flight status, delivery conditions, and the drone’s power level. It can even issue warnings and navigate the drone to a safe landing spot in the event of extreme weather or another emergency.

Simultaneously, the company launched DJI Transport, a cloud-based operations platform. With it, customers can plan equipment tasks, manage team resources, analyze flight and delivery data, and control the dynamics of the operation from top to bottom.

The Implications

Drone delivery remains a young industry that lacks a true juggernaut. Does DJI have what it takes to steal the crown?

As of February, the Chinese firm is responsible for about seven in 10 consumer drone sales globally. That makes it far and away the largest consumer drone provider in the world, a position it’s held since 2015. The company currently has more than 14,000 employees, dwarfing just about every competitor.

DJI’s first consumer drone, the Phantom 1, came out in 2013 after seven years of development. It didn’t sell well. But just two years later, the Phantom 3 added live stream capabilities and skyrocketed the company’s position. Around this time, CEO Frank Wang, who owns about 40 percent of the company, became the world’s first drone billionaire.

Now, DJI rakes in an estimated $2 billion in annual revenue. In other words, it has deep coffers to support its drone delivery efforts. Adding another business may also position the firm well for the future as it contends with a seemingly never-ending slew of bans and restrictions by U.S. lawmakers, who have derisively referred to the company as “TikTok with wings.”

DJI will likely sell drone delivery services primarily to enterprise customers. These figure to have stickier demand than the individual consumers who buy its camera drones, since enterprises are less prone to inflation and shifts in demand and will need the aircraft to do business. That should drive more revenue and shield it from macroeconomic downturns somewhat.

A company spokesperson told FLYING it’s “too early to tell” if DJI will deploy FlyCart 30 outside China. However, the company did hint that this is a possibility if regulatory and infrastructure frameworks allow it, and there are a few things working in its favor to soak up global demand.

For one, it has an expansive, international network of dealers and customers. Many prospective customers will have already been trained on other DJI systems and products, giving them a level of familiarity that could give DJI a leg up. Some companies and nongovernmental organizations are already using DJI gear to map and survey areas of interest or create images for marketing purposes.

A potential concern, though, is the drone’s size and weight. With both batteries and an empty payload, FlyCart 30 weighs 143 pounds, far exceeding the limit of the FAA’s small unmanned aircraft systems (sUAS) rule. To fly in the U.S., DJI would need to obtain a type certification or an exemption to Section 44807 of Title 49 of the U.S. Code. The European Union and New Zealand, two other emerging drone delivery markets, have similar rules.

FlyCart 30 measures about nine by 10 by three feet, a size typically reserved for long-distance models. However, its 10 sm range and 18-minute flight time will likely limit the model to last-mile delivery. For comparison, flagship last-mile drones from Wing and Matternet fly about 12 miles, Amazon Prime Air’s flies 9 miles, and A2Z Drone Delivery’s new RDST Longtail travels close to 7 miles.

All of these designs have significantly lighter payloads than DJI’s. That begs the question: What kind of cargo will FlyCart 30 carry? It’s likely too bulky for food or grocery deliveries, which is how the above companies make their money. According to DJI, emergency transport will be a core use case. But outside China it would have to compete with Zipline, whose drone can fly 190 miles on a single charge. FlyCart 30’s range will likely cap its usefulness for medical deliveries.

Besides Wing, Matternet, Amazon, and A2Z, DJI would jostle against Walmart and DroneUp and UPS Flight Forward in the U.S. It would likely compete with Volocopter in Europe and Africa, or with SkyDrop in New Zealand.

In China, DJI’s main competitor will be on-demand shopping platform Meituan, which last year made 100,000 drone deliveries in Shenzhen. EHang, a passenger electric vertical takeoff and landing (eVTOL) aircraft developer, also operates a drone delivery service in the country with DHL.

The company will likely spend the next few months or years feeling out the competition among these firms before attempting to launch in the U.S. or elsewhere. But if (or when) it does, it would have a massive potential market to work with.

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The post DJI Already Dominates Consumer Drones; Now It’s Getting into Delivery appeared first on FLYING Magazine.

A bankruptcy restructuring has been expected for weeks because of collapsing revenues, a heavy debt load and the decision by credit rating agencies to pull their coverage over the company’s lack of financial transparency. Bloomberg previously reported that Estero, Florida-based Western Global Airlines was arranging debtor-in-possession financing to support ongoing operations under a court-approved bankruptcy plan. 

Western Global founder and CEO Jim Neff reinvested in the company along with new investors and existing stakeholders, according to the announcement. The reorganization will reduce the company’s debt by more than $450 million and give the cash-strapped airline capital to operate its aging fleet of 21 freighters, two-thirds of which are currently out of service.

“WGA will continue to operate as usual and provide reliable and safe service to its customers throughout the reorganization process and going forward. The company, the founder, the plan investors, and the ad hoc group (bondholders) are focused on moving through this process expeditiously and thoughtfully to the benefit of employees, customers, and other stakeholders,” Western Global said.

Neff on June 29 also purchased the company’s $115 million of outstanding senior secured debt for $45 million in a competitive process, a move that reduced repayment pressure from lenders but also angered creditors that were moved to the back of the line for any claims on the company’s assets. Under the restructuring, Neff has agreed to forgo some of the statutory rights he would otherwise maintain as a holder of the distressed debt and pass on the $70 million benefit to other stakeholders, including employees participating in the Employee Stock Option Plan. Western Global employees own 37.5% of the company under the 3-year-old retirement plan. 

Unsecured debtors include U.S. Bank ($419.1 million in outstanding loans); aircraft maintenance company Lufthansa Technik (owed $10.4 million); GE Engine Services (owed $7.4 million); Eurocontrol ($388,000 for navigation fees); the Shreveport Airport Authority ($292,573 for facility rentals and other fees); and the city of Chicago ($191,000 for landing and other fees at O’Hare), according to court documents.

Radiant Global Logistics in March sued Western Global for nonpayment of $556,000 in freight transportation services.

Eighteen other companies affiliated with Neff filed for bankruptcy protection along with Western Global. Neff owns companies that lease the aircraft operated by Western Global. The filing seeks to have the bankruptcy cases consolidated and jointly administered by the court. A holding company comprised of Neff family members, including his wife, Carmit, owns Western Global Airlines.

Western Global’s business has significantly declined in the past year from the peak shipping demand triggered by the coronavirus pandemic, making it more difficult to make debt payments and leading to a liquidity crunch. The overall market is down 7% to 10% over the past 16 months and airlines are reporting sharply lower revenues for cargo. Amazon, Western Globa’s largest customer, ended its contract in January. Western Global has a fleet of aging MD-11 and Boeing 747-400 freighters that are expensive to operate and maintain. Fifteen of its 21 aircraft are older than 25 years and the average fleet age is 28.4 years. 

“As the founder and CEO of Western Global Airlines, I have always understood the unique value proposition that WGA brings to the world as a reliable, responsive, and low-cost international air cargo provider,” said Neff. “I am — and always will be — loyal to WGA and its employee team. As such, my number one priority is preserving the long-term viability and value of WGA and protecting our employees. All my objectives regarding the company align with this overriding goal. The plan we have outlined in the restructuring agreement reflects my continued dedication to and belief in WGA, along with the overwhelming support of our key financial stakeholders. I am confident that this plan will tremendously strengthen our financial position and ensure a better future for WGA, our people, and our customers. As always, we have the utmost gratitude to our employees, loyal customer base, and industry partners for their enduring support and appreciate the continued collaboration with our largest financial stakeholders.”

Western Global has filed motions with the U.S. Bankruptcy Court in Delaware seeking to maintain regular operations, including paying employees and vendors. 

Three employees, who are seeking class-action status, last year sued Neff and his wife for allegedly profiting from a bond sale made to finance a loan to employees buying into the company.  The lawsuit alleges the sale price for the employee stock ownership plan (ESOP) was based on 20 times the company’s fair market value and that when Western Global issued a bond offering that shot up to 10.375% because there were no takers, Neff bought the bonds himself and stuck the employees with heavily devalued shares.

Western Global noted that ESOP participants didn’t purchase their shares but rather were granted them at no out-of-pocket cost and that participation is voluntary.

Western Global said its restructuring adviser is FTI Consulting and that Seabury, an Accenture company, is acting as commercial adviser.

Editor’s Note: This report was previously published on freightwaves.com.

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As the U.S. home base for Amazon Air and DHL Express, Cincinnati/Northern Kentucky International Airport (KCVG) moves large volumes of express shipments. Now the airport is positioning itself to attract general cargo carried by passenger and freighter operators interested in bypassing crowded international gateways for faster turnarounds.

Officials have arranged to process significant amounts of cargo to be carried by a new British Airways (LSE: IAG) passenger service and recently struck a deal with a private company to develop an air cargo warehouse facility with airside access on 4.5 acres of airport property.

British Airways is scheduled to launch nonstop service between London Heathrow and KCVG on Monday. Flights will operate five times a week utilizing Boeing 787-800 Dreamliners, switching to four times weekly on Boeing 777-200 aircraft during the winter season. Airline officials were drawn by the fact that Dayton’s population bleeds into the Cincinnati area and there are millions of people within a two-hour drive of KCVG.

British Airways selected Miami-based Alliance Ground International, a fast-growing airport services company backed by private equity, to provide warehousing and pallet buildup/breakdown and sorting. AGI is occupying a 15,000-square-foot building where staff will bring cargo offloaded from British Airways flights and send out exports. 

The only other carrier that provides trans-Atlantic service from KCVG is Delta Air Lines (NYSE: DAL), which flies to Paris.

Although the route is ostensibly for passenger business, cargo opportunities likely factored into British Airways’ decision too. The 787-800 has room in the lower hold for more than 16 tons of cargo. Larger 777-200s can carry 22 tons of cargo and baggage. Stakeholders anticipate the new service will draw substantial interest for goods movement.

GE Aviation, aircraft engine maker Safran, Procter & Gamble, and drug and medical device research company Medpace Holdings all have headquarters and manufacturing sites in the Cincinnati area. Crane Worldwide Logistics has a 1 million-square-foot distribution center about 2 miles from the airport and is building another 600,000-square-foot facility nearby. Amazon Air and DHL Express have superhubs at KCVG, where they process millions of packages each week.

“While DHL Express maintains its own dedicated air network … the expanded commercial space that British Airways brings with its new service to [KCVG] will offer additional capacity to our express shipping network. This enhancement will benefit our customer shipments moving in both directions between the Americas and European regions,” said Joe Reusch, vice president of Americas network management at DHL Express, in a statement to FreightWaves. “It also facilitates more direct connectivity for the benefit of management teams that need to travel between our largest hub in the Americas region at [KCVG]and the extensive British Airways network.”

KCVG is a new location for Alliance Ground International, which has expanded its U.S. airport footprint over the past two years through a series of acquisitions. 

“The way Cincinnati is growing and with the freight forwarders in that area there are a lot of opportunities. So we’re very excited to be getting into that market,” said Warren Jones, AGI’s vice president of business development. 

Having a cargo agent with a large customer list and national footprint is a drawing card as the airport authority pursues other cargo airlines, said Simon Wood, director of air service development at KCVG. 

Cincinnati/Northern Kentucky is the seventh-largest cargo airport in North America by tonnage, according to Airports Council International. More than 70 percent of the throughput is domestic freight, thanks to the Amazon facility.

In mid-May, KCVG officials struck a deal with Burrell Aviation on a master lease under which the Aspen, Colorado-based firm will invest a minimum of $20 million to develop an 80,000-square-foot air cargo transfer facility. Last year, the airport demolished old cargo facilities to make way for a new air logistics center on the northern end of the property. Construction planning is underway. 

“We’re expecting a lot of general air freight to take place in that new area. It’s got a huge apron on that side for large freighters. We’ve got great courier business but the missing piece here has been general airfreight and maximizing the belly freight that comes through here,” said Wood. 

Nearly two-thirds of the U.S. population is within a day’s truck drive of KCVG. A new $3 billion bridge span between Covington, Kentucky, and Cincinnati, made possible by the 2022 federal infrastructure law, is designed to alleviate congestion on Interstates 71 and 75 crossing the Ohio River. The current bridge handles a large volume of daily truck traffic.

Many logistics companies are looking for alternatives to Chicago O’Hare and other major airports where it often take two or more days to retrieve cargo because of labor shortages, poor truck access, limited storage capacity and other factors.

Wood said there was room for KCVG to gain air cargo without detracting from cargo-focused Rickenbacker airport, less than two hours northeast in Columbus, Ohio.

IAG Cargo, the consolidated cargo business for British Airways and IAG Group airlines, declined to comment for this story.

For more coverage on air cargo, go to FreightWaves.

The post British Airways Brings Belly Cargo to Cincinnati/N. Kentucky Airport appeared first on FLYING Magazine.

Under the agreement, ZeroAvia’s ZA600 engine will be the only hydrogen-electric propulsion source offered for the Kona, designed to be a short-haul feeder UAV, the companies said.

• READ MORE: UPS Feeder Airline Intends To Buy 20 Pilotless Cargo Planes

The Kona’s BWB design boosts its hydrogen storage capacity compared with more conventional aircraft, potentially increasing range and cutting costs, according to the companies.

The partnership is meant to combine ZeroAvia’s expertise in hydrogen-electric powertrains with Natilus’ BWB design “to create a scalable, long-range, and zero-emission air cargo delivery solution for the entire industry,” the companies said.

After three years of wind-tunnel testing, Natilus recently completed a round of flight tests with a quarter-scale prototype aircraft. ZeroAvia has completed eight test flights of its prototype ZA600, 600kW engine in a 19-seat testbed aircraft, the companies said.

“Natilus has a long-term commitment to being a responsible steward of our environment, instituting practices that can protect the environment through continual improvements to save fuel and water, reduce waste, air emissions, noise, and material consumption,” said Aleksey Matyushev, co-founder and CEO of Natilus. “The Natilus-ZeroAvia partnership goes further, bringing the talents and innovations of the two companies together to deliver much needed innovation in the air cargo delivery industry and multiple solutions for our customers.”

“We all depend on air cargo operators, and some communities depend on them absolutely, so improving the economics and environmental impacts of these operations while increasing service levels is a massive opportunity,” said Val Miftakhov, founder and CEO of ZeroAvia.

Natilus said it has more than $6.8 billion in order commitments and more than 460 aircraft preorders from companies including Ameriflight, Volatus Aerospace, Flexport, Astral, Aurora International, and Dymond. The company is working on construction of a full-scale Kona technology demonstrator with a wingspan of 85 feet.

The post ZeroAvia, Natilus Partner To Develop Hydrogen-Electric Cargo Aircraft appeared first on FLYING Magazine.

UPS continues to reduce flight activity in its air network to maximize asset utilization and improve efficiency amid deteriorating shipping volumes.

Executives said during Tuesday’s earnings briefing that they are optimizing the domestic air operation and further reducing scheduled flights on the international front in an effort to curb costs.  

The parcel delivery giant reported operating profit fell 22 percent to $2.5 billion in the first quarter, with average daily package volume down several points from a year ago. International revenue decreased 7 percent. Management said weakness worsened toward the end of the March period. 

• READ MORE: FedEx to Close Pilot Bases In Alaska, California, Germany

Asia exports were a notable soft spot as retail sales in the U.S. and other markets decelerated. While international total average daily volume came in 6.2 percent lower year over year, Asia volume was down 8.9 percent and included a 20 percent drop on the China-to-U.S. corridor. 

UPS (NYSE: UPS) is adjusting by pivoting its network to match the lower demand. 

Internationally, the company has reduced scheduled flights “while ensuring we maintain agility in the network to quickly add flights where needed if volume returns more strongly than we expect,” said CFO Brian Newman.

In Asia, the express delivery giant reduced aircraft utilization by 14 percent — more than the actual decline in export volume. And more block hours will be shaved off during the current quarter, said CEO Carol Tomé. 

Within the United States, UPS is adjusting package flows to maximize utilization of Next Day Air flights, which enables it to reduce block hours—time in flight and taxiing at the airport—in the two-day operation. The idea is to fill the overnight flights that have to move to meet delivery commitments so there’s less need to operate as many daytime flights, according to management. 

UPS began retiring its fleet of older MD-11 aircraft in January. A total of 42 tri-jet freighters will be discharged over the next few years and replaced by 28 new Boeing 767 medium widebody aircraft, the first seven of which are scheduled for delivery this year. The 767s offer lower operating costs, with better reliability and fewer emissions.

FedEx is taking more drastic steps, including consolidating maintenance and pilot bases, because it has a lot more redundant capacity and overlapping networks. And DHL Express has also scaled back flight hours.

Volumes across the non-express air cargo industry are down about 12 percent year over year, according to market intelligence firms.

The decrease in UPS flight hours dovetails with cutbacks by other express and cargo operators. Freighter aircraft utilization worldwide, a leading indicator of freight demand, declined 3 percent year over year in March, BMO Capital Markets said in a recent research note. That was a slight improvement from the negative 4.4 percent and negative 7.7 percent contractions in February and January, respectively, but likely due to an easy comparison to the prior year as the Chinese economy reopens.

Within North America flight hours dropped 6.1 percent year over year in March, compared to -5.3 percent in February and -4.3 percent in January, with the 12-month moving average showing the pace of contraction accelerating, BMO said. In the North America-Asia lane flight activity was down 6.4 percent versus -11.8 percent in February and -15.5 percent in January as exports increased from China. Flight activity was down 12.9 percent between North America and Europe. 

For more coverage on air cargo, go to FreightWaves.

The post UPS Downshifts Flight Activity as Volumes Deteriorate appeared first on FLYING Magazine.

FedEx will shut down pilot bases in Alaska, California and Germany as part of the company’s aggressive campaign to eliminate billions in structural costs by fiscal year 2027 by streamlining operations and networks, FreightWaves has learned.

Pilots domiciled in Anchorage, Los Angeles and Cologne Bonn Airport in Germany who fly two older aircraft types will gradually transition to other bases in the FedEx (NYSE: FDX) network, the company said in an email statement. The Cologne hub hosts crews for medium-size Boeing 757 freighters, while Ted Stevens Anchorage International Airport and Los Angeles International Airport are home ports for McDonnell Douglas MD-11 pilots.

“As the global business environment continues to evolve, FedEx has made the decision to relocate its pilots and close its 757 crew base in Cologne, Germany (GHN) and its MD-11 crew bases in Anchorage, Alaska (ANG) and Los Angeles, California (LAX). The decision only affects the base of the crews operating these flights and will not impact our current service,” FedEx said. “Our operations in these markets continue to play an important role in the global FedEx network and the flexibility of this network enables us to make adjustments that best meet the needs of our customers throughout the world. As with any base closure, the process is a gradual one and this relocation will occur without any disruption to our operations.

FedEx Express positions pilots across the U.S., Europe and Asia to increase efficiency. Living in the same city where flights originate allows pilots to have the longest layovers and makes scheduling easier in contrast to living in remote locations and having to commute to the base for the next duty cycle. 

FedEx also has pilot bases at its global hub in Memphis, Tennessee, as well as regional hubs in Indianapolis; Oakland, California; and Guangzhou, China.

The airline closed its Hong Kong pilot base in late 2021 because draconian COVID quarantine requirements for pilots returning from overseas trips significantly hampered its ability to operate efficiently. Most pilots were relocated to Oakland.

The base closures are part of a multilayered cost initiative since last fall to right-size operations with the downturn in international and e-commerce shipping volumes as well as make long-term transformational changes. A restructuring, announced earlier this month, will see FedEx combine separate air, ground and parcel businesses under one roof to improve network efficiency. The efforts, launched after FedEx’s operating income significantly underperformed, are expected to generate $6 billion in permanent cost reductions.

A major focus is efficiently deploying crews, aircraft and commercial linehaul. 

FedEx plans to save $700 million per year in its air network by rerouting nonpriority shipments to ground transport and third-party carriers, deemphasizing its hub system in favor of more direct routes and consolidating other functions. The company is also accelerating the retirement of its MD-11 fleet by two years. FedEx operated 58 of the older, tri-engine jets and 119 Boeing 757-200s as of March 1.

FedEx officials have said they will reduce flight hours by more than 10 percent this quarter compared to last year and over the long term invest less in future aircraft as more flying is outsourced.

FreightWaves first reported in late March that FedEx planned to close its heavy maintenance facility at LAX next year and move those functions to its large regional hub in Indianapolis.

The closure of the pilot bases raises uncertainty for FedEx pilots as they try to close out a contract deal after two years of talks. Earlier this month pilots began voting on whether to give union leaders a mandate to call a strike if federal mediation and other steps fail to break the impasse.

“In the final stages of contract negotiations, senior FedEx executives have introduced career-altering changes for the dedicated pilot — a corporate-wide restructure with a new emphasis on outsourcing, pilot base closures, forced pilot downgrades (which equates to a pay reduction) and a push toward moving Express freight on slower modes of transport, essentially cannibalizing the FedEx Express flight network,” the Air Line Pilots Association said in statement last week marking FedEx’s 50th anniversary.

The strike authorization vote closes on May 17.

For more coverage on air cargo, go to FreightWaves.

The post FedEx to Close Pilot Bases In Alaska, California, Germany appeared first on FLYING Magazine.

A boutique investment group is offering underutilized airports outside congested metropolitan areas a cargo-hub-in-a-box aimed at quick-starting infrastructure development to take advantage of demand for expedited logistics and overflow volumes. 

Major airports for decades have concentrated resources on passenger operations, such as fancy passenger terminals and ride-sharing lanes, that generate the bulk of revenues. Cargo infrastructure and services have largely been an afterthought, and many airports are running out of capacity to efficiently handle shipment growth driven by e-commerce.

That is creating opportunities for secondary airports, especially as online retailers pursue more distribution points that are closer to customers and don’t face the shipping delays of crowded urban settings. But many airports don’t have the capital or expertise to implement a cargo strategy.

Enter Burrell Aviation.

The Aspen, Colorado-based firm essentially delivers an all-in-one package of financing, construction, marketing, leasing and operation of cargo and other airside activities in exchange for exclusive long-term ground leases. Burrell Aviation now has 22 airports in its portfolio. It is helping them modernize runways and taxiways, replace aging facilities with modern airfreight warehouses and make other investments to attract dedicated freighter airlines and logistics companies that cluster around airports.

The difference between Burrell and other airport development companies is its first-mover strategy that involves identifying promising airports and approaching them with a public-private partnership plan before officials realize a need or solicit bids for a project. Developers typically lease small parcels that cover specific projects, but Burrell’s speculative strategy is to lock up large chunks of airport property before it goes on the market.

“We’re readying sites for near-term development. This is a speed-to-market component of the airport world that cannot wait five to 10 years before it comes online. So we’re focused on working with our airport partners to prepare land parcels that can be shovel-ready for development in the next 18 to 24 months,” CEO John Carver said during a recent episode of FreightWaves NOW, a daily streaming TV program. “With an accelerated development timeline we can provide solutions, create jobs, create new revenue streams for the airport and maintain this supply chain evolution in the air cargo world.”

In an email message, Carver said the near-term business plan is to engage 35 to 40 airports in development deals for cargo, maintenance and corporate hangar projects. Characteristics the company looks for are proximity to large cities, a good highway network, a progressive airport administration, state economic development incentives and logistics activity in the area.

Nebraska officials on Thursday announced that Burrell Aviation would invest an estimated $65 million to develop Lincoln Airport’s first cargo facilities under a lease of up to 50 years. The firm will oversee the completion and operation of 210,000 square feet of cargo facilities customized to the needs of future tenants. 

Lincoln Airport is a former Air Force base with a 13,000-foot runway, one of the longest at any commercial airport in the country, that can easily accommodate the largest cargo aircraft. Federal funding is helping to pay for the runway’s reconstruction. 

Last month, Burrell Aviation agreed to lease 53 acres at Baton Rouge Metro Airport in Louisiana for 30 years, with two 10-year renewal options, to establish an air logistics center and other aviation activities. The estimated amount of investment for the project is $113.8 million.

Both airports have easy access to interstate highways.

Private Dollars, Public Infrastructure

A concession model that transfers financial risk for infrastructure projects from public agencies to the private sector in exchange for revenue generated is common in other sectors, such as port, and speeds up project development.

Burrell clears land, establishes utility connections and makes other preparations so sites are shovel-ready when tenants are signed. It has recruited a team of top industry players that can be plugged in to deliver a turnkey cargo solution, including an architectural design firm; Lemartec, a large infrastructure contractor with extensive experience building airport facilities; real estate service firm Cushman & Wakefield to market properties; and Alliance Ground International, a rapidly growing airport services company that will service cargo aircraft and process shipments.

The surge of freighter aircraft carrying medical supplies and goods diverted because of broken ocean and rail supply chains during the COVID crisis reminded airports about the importance of cargo to local economies and the need for diversified revenue sources, aviation professionals say.

Regional airports have the opportunity to catch spillover traffic, especially for e-commerce. Amazon, for example, is rapidly expanding its air logistics network to smaller airports such as Omaha, Nebraska; Wichita, Kansas; El Paso, Texas; and Manchester, New Hampshire. Amazon Air now serves at least 50 airports, according to DePaul University researchers.

“With this need for improvement of the air cargo supply chain the opportunity for private sector investment is huge because the airports don’t have money in their capital improvement plans for the most part, and the airlines, cargo handlers and freight forwarders that deal in this space are not equipped to provide infrastructure funding for new facilities either,” Carver said. 

Burrell is looking for forward-thinking airports eager to compress the development timeline.

“The traditional developers are reactive to the interest that has been generated. We’re much further upstream,” Carver told FreightWaves during a trade show in November. “We’re picking the airports and then working with the airports to identify the highest and best use. And then we have the opportunity to make the investment. What we’ve done is secured the only developable land available at the airports that we have positions at … so if somebody has business [there], all roads are going to lead through our property.”

Burrell Aviation is part of the Burrell Group, a holding company for businesses in medical education and health care technology, financial services, construction, commercial and residential real estate, food services, hospitality, and natural resources.

For more coverage on air cargo, go to FreightWaves.com.

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Sporting its familiar brown, gold, and white livery, UPS Airlines’ new 747-8F (registration N633UP) flew Friday from Paine Field (KPAE) near Boeing’s plant in Everett, Washington, to Louisville (KDSF). There, the new “brown tail” joins the UPS fleet at the package delivery company’s main hub, UPS Worldport. 

Today, we took delivery of our final @BoeingAirplanes 747-8. Tail N633UP is our 28th @UPS 747-8. This #queenoftheskies will provide a critical link to #deliverwhatmatters for our customers around the world. #aviation #avgeeks

@Baqir_KPAE Thanks for tagging us. https://t.co/F6KCuNYbIQ

— UPS Airlines (@UPSAirlines) April 9, 2022

The addition of N633UP increases UPS’s total number of 747s to 41, including 13 747-400Fs and 28 of the -8F variant. 

That leaves just four open orders for Boeing’s last 747s to come off the production line. Those final -8Fs are expected to be delivered to Atlas Air Worldwide later this year, closing the OEM’s order books on an iconic model, largely due to the development of more fuel-efficient, twin-engine freighters and passenger airliners.  

“The 747-8 provides UPS with an outstanding combination of payload, range and efficiency,” UPS media relations director Jim Mayer told FLYING in an email Monday. “Its capabilities have enabled us to operate a nonstop flight from UPS Worldport, our main air hub in Louisville, Kentucky, nonstop to Dubai, UAE, shaving an entire day from time-in-transit between North America and the Middle East.” 

Queen of the Skies

One of the largest airplanes in the world, the 747-8 boasts a maximum payload of about 307,000 pounds and offers 19 percent more payload than its predecessor, the 747-400—which was the biggest seller of the 747 variants. The 747-8F is currently the only commercial freighter in production with nose-loading capability, according to Boeing.

• READ MORE: Comparing the World’s Largest Airplanes

In the 53 years since the first iteration of the 747 took flight, the beloved four-engined widebody became known as “the Queen of the Skies.” It changed aviation for the world by opening up international travel to the middle class on a wider scale. It was so popular with airlines that more than 1,500 were built across multiple variants. 

Production of the passenger variant of the 747-8 ended in 2017 after Korean Air became the final commercial passenger airline customer to receive delivery of four -8s. An unidentified customer took delivery of the final passenger -8 in November of last year. 

The military variant of the 747-8—known as VC-25Bs—will be the next generation of presidential executive widebodies for use as Air Force One. Two existing -8s that are being transformed into VC25Bs reportedly are behind schedule, according to Reuters and the Wall Street Journal. Negotiations are still ongoing between Boeing and the Pentagon about when these final airplanes will be delivered. 

Not only are we witnessing the end of the 747 itself, but the final four freighter deliveries also represent the end of the entire jumbo production era, coming a year after the final Airbus superjumbo A380 airliner rolled off the line in Toulouse, France, in February 2021. 

The post UPS Receives Delivery of Its Last New Boeing 747 appeared first on FLYING Magazine.

“I thought things would be better here,” says the pilot, Dmytro Antonov (no relation), in a YouTube video purportedly shot last Friday. “There is so much damage and a lot of bullet holes.”

The video may be the best documentation to date revealing extensive damage to the historic airplane since it was involved in intense battles in February between Ukrainians and invading Russian troops at Ukraine’s Gostomel (Antonov) Airport (UKKM). 

In the video, Antonov is heard sighing heavily as he walks around the An-225’s massive wreckage inside an airport hangar, commenting on what may or may not be salvageable. “The cabin is here somewhere, burnt out,” he says.

Discussing the plane’s six engines, the veteran pilot comments: “Three pieces are in order but the rest are not,” according to a YouTube translation. He says some of the flaps appear to be intact and some landing gear appears to be “acceptable for use,” offering the caveat, “the experts will figure it out.”

The walk-around includes what little remains of the flight deck and a shot of Mriya’s titanium tile identifying the aircraft’s certificate of production and plant number. 

• READ MORE: Mourning the World’s Largest Cargo Airplane

The nearly 28-minute video also shows other damaged aircraft at UKKM, including a smaller Antonov transport, an An-124 Ruslan. “What can I say? It sucks, but it will survive.”

Antonov also suggests the unique airplane may be replaced someday. 

“We need to redo production,” he says. “This is such a serious job… the commission would decide everything.”

In a recent Facebook post, Mriya’s operator, the Antonov Company, announced a fundraising campaign aimed at “reviving” the jet. 

• READ MORE: Antonov Launches Fundraiser

Antonov’s Facebook post noted a “lack of funds” for reviving the airplane. The post said Mriya was “destroyed” in “the process of aggression against Ukraine.”

The post Watch Pilot Assess Damage to World’s Largest Cargo Plane appeared first on FLYING Magazine.