AviationOutlook Newsletter Dec 31, 2024

Dear readers,

Welcome to AviationOutlook Newsletter, your one-stop source for the most relevant Aviation & Aerospace news briefs and industry insights.

Here are the important updates for today. Let’s get started.

Will This Experimental Non-Profit Airline ‘TechAir’ Be Successful?

TechAir, a new non-profit airline launched by Israel's High-Tech Forum, is set to begin operations on January 21, 2025, offering direct flights between Tel Aviv and New York.

The initiative aims to address the critical shortage of flights caused by international airlines suspending services due to ongoing security concerns in Israel.

Key Points

• TechAir was created as a response to the severe reduction in flights between Israel and the U.S., which has disrupted business operations for Israel's tech sector.
• It operates under a wet lease agreement, meaning the aircraft and crew are provided by a third party.
• The launch comes amid heightened demand for flights due to international airlines like United and Delta suspending services indefinitely.
• It operates under a wet lease agreement, meaning the aircraft and crew are provided by a third party.

What It Means

By offering affordable and direct flights, it challenges El Al’s dominance and provides much-needed relief in a strained market.

If successful, it could pave the way for similar cooperative models in the airline industry.

However, its sustainability beyond March depends on achieving sufficient demand and overcoming regulatory hurdles.

Did You Read?

• Why Planes Crash? It's Often a Symphony of Failures
• China's Sixth-Generation Fighter Jet: A New Era in Air Combat
• Jeju Air Flight 7C2216 Crash: Korea's Worst Aviation Disaster in Decades
• U.S. Airlines 2024 Year-End Review: Winners, Losers
• Boeing Stock Drops as South Korea Orders Inspections of All Boeing 737-800

Other key Aviation and Aerospace Industry updates for today 👇

Volocopter Files for Insolvency Amid Financial Struggles

German air taxi startup Volocopter filed for insolvency on December 26, 2024, citing a cash shortfall despite past successful fundraising and a low burn rate.

Volocopter plans to continue operations during the proceedings while seeking new investors and aims to restructure by February 2025.

This development follows competitor Lilium’s recent rescue by new investors, highlighting challenges in the advanced air mobility sector.

Regional Airline Silver Airways Files for Chapter 11 Bankruptcy

Silver Airways, a regional airline based in Florida, filed for Chapter 11 bankruptcy protection on December 30, 2024, in the U.S. Bankruptcy Court for the Southern District of Florida.

The carrier aims to secure additional funding and restructure its finances to strengthen its competitive position.

Despite financial challenges, including debts to the IRS and airport authorities, operations will continue uninterrupted. All tickets remain valid, and partnerships with United and JetBlue are unaffected.

Silver Airways expects to emerge from restructuring by Q1 2025, maintaining its regional routes across Florida, the Bahamas, and the Caribbean with its fleet of ATR turboprop aircraft.

Deadliest Year for Commercial Flights Since 2018 Reported in 2024

Commercial aviation fatalities in 2024 reached 318, marking the deadliest year since 2018, when 557 lives were lost.

The year’s most tragic incidents included a Jeju Air crash in South Korea that killed 179 people and an Azerbaijan Airlines crash in Kazakhstan, resulting in 38 fatalities.

Other major accidents occurred in Brazil (62 deaths) and Nepal (18 deaths).

The rise in fatalities highlights ongoing challenges in safety management, particularly during critical flight phases like landings.

Navy Awards $3.5 Billion Contract for E-6B Mercury Replacement

The U.S. Navy has awarded Northrop Grumman a $3.5 billion contract to develop the E-130J, which will replace the E-6B Mercury aircraft for the critical TACAMO (Take Charge and Move Out) mission.

The E-130J, based on Lockheed Martin’s C-130J-30 airframe, will ensure secure communication between U.S. leadership and nuclear forces during emergencies.

The contract includes three engineering development models and options for up to six production aircraft.

This modernization effort is part of the broader nuclear deterrence strategy, with Northrop Grumman leveraging advanced digital engineering and manufacturing to expedite delivery.

The E-6B will retain its secondary "Looking Glass" mission.

EHang Reports Record Q4 2024 Revenue Growth Driven by EH216-S Demand

EHang Holdings Limited announced record preliminary results for Q4 2024, with revenues expected to reach RMB162 million, exceeding guidance by 20% and growing 187% year-over-year.

Fiscal year 2024 revenues are projected at RMB454 million, a 287% increase from 2023 and 6% above prior guidance.

The strong performance is driven by high demand for its EH216-S autonomous aerial vehicles, operational milestones, and growth in the urban air mobility sector.

These results highlight EHang’s expanding market presence and its progress toward commercializing pilotless passenger-carrying aircraft.

Embraer Expands African Presence with New A-29 Super Tucano Sale

Embraer has signed a contract to sell four A-29 Super Tucano aircraft to an undisclosed African customer, marking the sixth operator of the aircraft on the continent.

The A-29 is a versatile light attack and advanced training turboprop, capable of missions like border surveillance, counterinsurgency, and flight training.

This deal follows a strong year for Embraer, with 34 Super Tucanos sold globally in 2024, including orders from Portugal, Uruguay, and Paraguay.

The new African order highlights Embraer’s growing presence in the region, though delivery timelines remain undisclosed.

KULR Partners with U.S. Army to Test Vibration System on Apache, Black Hawk

KULR Technology Group has partnered with the U.S. Army to evaluate its KULR VIBE system for vibration reduction on AH-64E Apache and UH-60 Black Hawk helicopters.

The 12-month study, starting in 2025 at McEntire Joint National Guard Base, aims to enhance operational efficiency, reduce maintenance costs, and improve aircraft longevity.

Conducted with the South Carolina National Guard, the project builds on KULR’s prior success with the U.S. Marine Corps’ AH-1Z Viper, where the system saved significant troubleshooting hours and prevented premature asset retirement.

If successful, the technology could see broader adoption across Army aviation platforms.