[Peetwo]

The Last Minute Hitch: 27 March 2020

27 March 2020
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– Steve Hitchen

Flying schools are charter operators Australia-wide are starting to grapple with the inevitability that most of our industry may be shut down in the days or weeks ahead. Whilst at first it seems that GA doesn't fall under any of the current government-mandated restrictions, some flying schools have abandoned dual flights to protect staff from potentially being exposed to coronavirus. It's the right thing to do, but the impact on cash flows and instructor incomes has been devastating. It could get far worse. The Victorian and NSW governments seem determined to go into lockdown if need be. That means staying at home and not making trips out to the airport even if it is safe to fly. The industry responses to this potential have been varied, from "reduce to turbulence penetration speed and see out the storm", to "it's Airmageddon!" Both positions are right. Some companies have the resources behind them to tame this tempest, whilst others will have to hand back their AOC, their aeroplanes and their house. With unemployment charts looking like the trajectory of a space shuttle launch, our lawmakers are completely overwhelmed and will be picking and choosing where to place money. Most interesting, at this stage, the Regional Airports grant program announced last year is still going ahead. Could those funds be better placed within the industry at the moment? With the wall looming for many GA companies, perhaps re-directing the cash to a fighting fund might be greeted with applause. Expanding airports can wait.

that will be welcomed like a dose of COVID-19 at a hairdresser

One of the great mysteries right now is the impact on the federally-leased airports such as the metropolitan Class Ds. The indications I am getting show that stressed operators are, at the very least, going to ask the airports for relief from leases that are already significant burdens. With movements likely to nose-dive in the event of a total lockdown, the airports will already be facing revenue losses. Where the airports are leased to development or investment companies, that will be welcomed like a dose of COVID-19 at a hairdresser. The point of owning the leases is that the property puts money into the parent company's coffers, not the other way around, which may encourage the owners to seek their own relief from the government. The US government, perhaps the most under-siege administration in the world at the moment, has created a $US100 million war chest for GA airports and you can bet the Morrison government will be under pressure from all quarters to do the same thing here.

CASA's initiatives are being widely applauded, even moreso than the Coalition's $715 million package. The measures CASA has taken will have positive benefits in real terms, whereas the aviation industry's package is based on variable costs; savings in fuel excise and airways charges that weren't going to be incurred anyway. Parked aeroplanes use no fuel and flights not made don't have to pay airways charges. And whether or not GA was included in the scheme has still not been answered at the time of typing. In effect, not a lot has been done for any sector of aviation so far. The immediate future of GA depends largely on what the government does next with both relief packages and lockdown measures.

But we need to remember this: there is going to be a general aviation industry and community once the COVID-19 crisis is over because the passion that underpins GA will still be there. It's that passion that has constantly sent us all back to the regulatory wall to bang our heads against it, and it will drive us to revive our industry in the second half of this year. The sad thing is that we are likely to lose some soldiers along the way as inevitably not every company, aero club or organisation will be able to make it to GA's brave new world. When the shackles are off, we'll all be busting for a good long fly to a distant cafe somewhere and activity within the community will leap. Demand for avgas, headsets, books, whiz-wheels, EFBs, flying instructors and everything else that makes up our industry will return with a vengeance and as an industry we need to be ready for that to happen. It might be in two months; it might be in four months. The important thing is that we need to hang on to as much as we can to carry it forward not only for the rest of 2020, but for the years immediately ahead.

Australian Flying is preparing to do just that. We're setting in place measures to make sure we're there for all readers throughout whatever the immediate future brings. The magazine will continue to come out on time every two months as it has for decades. One concession that we've needed to make is the E-newsletter. Rather than coming out every Friday, the news feed will now arrive in your inbox once a fortnight staring mid April. News will, however, still reach the website as soon as it happens and we'll keep you connected through our Facebook page. The industry will go on and Australian Flying has long been a part of that industry.

May your gauges always be in the green,

Hitch

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And:

RAAus to seek Regulatory Relief
26 March 2020
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Recreational Aviation Australia (RAAus) has announced it will seek exemptions from CASA similar to those extended to the aviation industry this week.

"RAAus has been working on ways to support our Instructors, CFIs and members in these challenging times," the announcement states. "We are aware and supportive of the recent CASA initiative to extend flight reviews and medical validity for licence holders.

"These initiatives provide some certainty during the current crisis and where the regulations permit, RAAus is working with CASA as a matter of urgency to extend similar initiatives to its members for biennial flight reviews, rating and approval holder renewals and medical validity."

The relief packages announced on Tuesday included a six-month extension on Part 141/142 certificates, licences to remain valid for six months after a medical expires, licences to remain valid for three months after a flight review or proficiency check expires and relief from Part 61 proficiency checks.

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Plus:




The COVID Effect
27 March 2020
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General aviation companies around the globe have been significantly impacted by the coronavirus pandemic, with some manufacturers slashing workforces and others ceasing production completely.

With the GA industry plagued by uncertainty ahead of potential catastrophic lock downs, companies are reconfiguring to survive what is looming to be a greater challenge the industry's viability than the Global Financial Crisis.

Flying schools are assessing their ability to continue operating and still comply with government-mandated measures, whilst some airports around Australia are gearing-up for significantly reduced movement levels.

One of the largest GA company's in the world, Textron Aviation, will stand down around 7000 workers for four weeks in the 23 March – 31 May period. Textron makes the Cessna and Beechcraft range of aeroplanes as well as Bell helicopters.

Bell Helicopter is also offering flexible working arrangements including working remote and staggered work schedules to employees.
Canada's Viking Aircraft, manufacturer of the 400 series Twin Otter, has stopped production at its plant in Victoria, BC, and Calgary, Alberta. Around 40% of the company's workforce will be impacted.

"This is a period of considerable challenge for our industry and for our customers, and we must adapt to this new–hopefully temporary – reality,” said David Curtis, Executive Chairman, Longview Aviation Capital Corp, which owns Viking and De Havilland Canada.

“In this context, we will focus our efforts on supporting our customers’ existing in-service fleets and delivering the other services our companies provide to the global aviation industry. We will remain in close contact with our customers and continue to monitor the evolving situation. We will make further adjustments to our operations as required.”

De Havilland Canada has also stopped production of the Dash-8 400, impacting 800 employees.

Engine manufacturer General Electric, which builds engines for the Honda HA-420 and is behind the new turbo-prop engine to be fitted to the Cessna Denali, will stand down 10% of its workforce for three months, equating to 2500 employees.

"The aviation industry is feeling the impact of this global pandemic most acutely," said CEO Larry Culp. "The rapid contraction of air travel has resulted in a significant reduction in demand as commercial airlines suspend routes and ground large percentages of their fleets.

"As a result, GE Aviation is announcing several steps that, while painful, preserve our ability to adapt as the environment continues to evolve."

At Vero Beach, Florida, Piper Aircraft has taken the step of dedicating part of its workforce to making medical face masks to ease the shortage of critical medical supplies needed to fight COVID-19.

"This is a critical time for our community, our country and the world," said James Funk, Piper’s Chief Operations Officer. "It is a time for action, cooperation and collaboration. As a team, we can make a difference for people in need and directly support those fighting the battle on the front lines of this unprecedented crisis.

"This is just one small way that we are trying to help. We want healthcare providers, especially, and patients to be safe, therefore it’s vital that we all pull together to help our community, weather this crisis and come out the other side stronger than ever.”

Brazilian jet manufacturer Embraer has announced a program to produce parts for ventilators and respirators, replace imported components for ventilators, develop high-efficiency filtration systems for transforming regular hospital beds into intensive care beds and study methods of developing portable respirators aimed at rapid availability.

In Italy, one of the nations hardest hit by coronavirus, Leonardo Helicopters still has 70% of its employees showing up for work amidst on-going negotiations with unions.

"Leonardo is aware of the difficult moment that the country is experiencing," a statement released this week says. "We reaffirm our utmost commitment to guarantee all our workers the highest safety standard by fully respecting the prescriptions established by the government and also the further measures agreed with the trade unions through the protocol recently signed.

"Our sector is highly strategic and our aim is to ensure the production continuity but without any compromise on safety and health."