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Frost & Sullivan: ASEAN's Aerospace, Defense and Maritime Industries Set for High Growth between 2013 to 2015
KUALA LUMPUR, Malaysia, Jan. 2, 2013 /PRNewswire/ -- The commercial aerospace, defense and maritime industries are set for high growth over the next few years in the ASEAN region. Increasing economic development, rising demand for travel and trade in the region have especially been driving the need for the region to strengthen its air and sea transport infrastructure to meet up with these demands.
HW LIMA together with knowledge partner Frost & Sullivan plans to address new market opportunities and shed insights on the future of Aerospace, Defense and Maritime Industries at the Langkawi International Maritime and Aerospace (LIMA) Exhibition, happening in March 2013.
"LIMA has been getting a lot of enquiries from new to market companies, which we attribute to the importance of the Asian market vis-a-vis what is currently happening in Europe and the United States. We have partnered with Frost & Sullivan with the aim to continue driving growth by delivering more to our participants. Our new tag-line 'Delivering Asian Markets' encompasses our overall strategy to provide an effective and relevant platform in a region widely considered to be the world's leading growth area for aerospace and maritime," said Mr. Ahmad Dzuhri Wahab, Managing Director of HW LIMA Exhibitions. On the commercial aviation front, the introduction of LCCs and airport developments in the region are expected to drive growth of this industry in the near future. According to Frost & Sullivan, passenger traffic across airports in the five major ASEAN countries of Malaysia, Singapore, Indonesia, Philippines and Thailand, is expected to reach close to 318 million passengers by 2017.
Growth of maritime is expected to be driven by increasing port development in countries such as Singapore and Malaysia in efforts to increase their traffic handling capacities. The total sea freight traffic handled in this region is expected to reach 2.52 billion tonnes by 2017.
On the defense front, the acquisition of UAVs, armoured vehicles, ships and aircraft will drive defense procurement spending in the near future. A lot of this increased spending is being driven by the rising geopolitical instability in the region and the need for replacement of obsolete military equipment. Defense spending in the ASEAN region is expected to grow at a CAGR of close to 10% during 2012 to 2020, reaching more than US$61 billion by 2020.
"Overall, 2012 to 2020 is expected to be a period of opening up of many growth opportunities for the aerospace, defense and maritime industries in ASEAN region in the near future. The implementation of several governmental reforms such as the ASEAN Economic Community (AEC) and open skies agreements among ASEAN countries is expected to drive growth of these industries in the region," said Mr. Neil Dave , Consulting Analyst of Aerospace & Defense at Frost & Sullivan Asia Pacific.
The Langkawi International Maritime and Aerospace (LIMA) Exhibition, from 26 to 30 March 2013, is fast becoming a must attend show for Asia. LIMA is a biennial event that gathers the world's leading maritime and aerospace companies in a week of high impact business and networking activities with special aerobatic and ship displays as highlights. The exhibition will introduce a number of key new programmes, foremost being the ASEAN Aviation Best Practices Awards, The LIMA '13 Shipbuilding and Ship repair conference and the ASEAN Aviation Conference designed at boosting LIMA's global profile and increase participation.
Registration and booking of space for LIMA'13 is now open and more information on the Langkawi International Maritime and Aerospace Exhibition 2013 can be found at www.lima.com.my.
Pilatus Aircraft to Set Production Base in Chongqing Liangjiang
CHONGQING, China, Dec. 24, 2012 /PRNewswire/ -- Pilatus Aircraft Co., Ltd., a world famous aircraft manufacturer from Switzerland, opened its Chinese headquarters on December 18 (production & service base and delivery center) in Chongqing Liangjiang New Area.
The first two PC-6 airplanes produced on that day were provided to the General Administration of Sports of China as training planes. Over 20 more were ordered by Xinjiang General Aviation Co., Ltd., Yunnan Ruifeng Group and Minsheng Financial Leasing Co., Ltd.
Chongqing mayor Huang Qifan said, "China only has around 1,154 airplanes in service at present, with less than 0.4 percent of that in America. In 2015, China will completely relax the control of aircrafts at low altitude so that the demand will greatly increase."
Chongqing has technology advantages in aluminum fabrication and production of general motor, transmission gear and gear case. Pilatus chose the right time to enter the Chinese market.
Boeing Adds Major High-Tech Manufacturing Jobs
Utah's Aerospace and Defense economic cluster gets big lift
Salt Lake City, Utah –The Governor’s Office of Economic Development (GOED) announced December 6th that it will work with The Boeing Company over the coming years to expand the number of high-tech manufacturing jobs located in its Utah operations.
“Utah’s manufacturing industry is growing, and the expansion of Boeing will bring us even higher,” Governor Gary Herbert said. “I look forward to the growth this expansion will bring to Utah’s infrastructure and economy."
GOED will enter into a 20-year incentive agreement with Boeing. The main goal of the agreement, which may have incremental adjustments during its life, is to increase composite manufacturing in the State. Currently, Boeing manufactures 787-8 and -9 vertical fin in Utah, and in March announced they would assemble the 787-9 horizontal stabilizer.
The first phase of employment will include the addition of 104 new highly incented positions that will pay at least 125 percent of Salt Lake County’s average yearly wage including benefits over the life of the agreement. Wages paid out over the life of the incentive will exceed $146 million. Over the lifetime of the agreement, Boeing will pay over $5.5 million in new state taxes.
Along with Boeing’s growing work in process, the addition of 104 new positions will help the company support airplane production rate increases. The Department of Workforce Services (DWS) and the Industrial Assistance Fund (IAF) will be matching Boeing training funds up to $225,000 for specialty training. In addition to this training DWS will be providing up to $100,000 in inaugural “WorkKeys” funding in Utah. “WorkKeys” is a national program that allows the company to have greater accuracy in determining the skill set of potential new employees. These programs working in tandem should allow the company to increase the proficiency of its incoming workforce.
As the world’s leading Aerospace company, Boeing is the largest manufacturer of commercial and military aircrafts and leads the world in aerospace technology. They are also one of NASA’s largest service providers and are in charge of operating the Space Shuttle and International Space Station. Boeing has operations in roughly 70 countries and customers in nearly 150 countries worldwide. They are headquartered in Chicago and employ more than 170,000 people. They are one of the largest exporters in terms of sales in the United States.
“Boeing’s reputation for innovation and leadership has in part helped Utah gain a reputation as one of the leading states for business,” GOED executive director Spencer Eccles said. “We look forward to seeing what this new project will bring.”
“EDCUtah is thrilled to see the continued expansion of Boeing in Utah.” says Jeff Edwards, president and CEO of Economic Development Corporation of Utah. “Boeing’s impact on the aerospace industry in Utah is significant to the success of this important economic cluster in the State.”
The GOED Board of Directors has approved a $1,376,254 Economic Development Tax Increment Financing (EDTIF) post-performance refundable tax credit, or 25 percent of Boeing’s new state revenues over the incentive’s 20 year lifetime.
Italian Light Aircraft Manufacturer Picks Olando, Fla.
December 6, 2012 (ORLANDO, Fla.) – The Metro Orlando Economic Development Commission (EDC) today announced that Italico Aviation, an Italy-based airplane manufacturer, is opening a manufacturing facility at the Kissimmee Gateway Airport. This Kissimmee, Fla. facility will manufacture light sports aircraft (LSA). There are only three large manufacturers of LSAs, Italico being one of them, who will be opening up a location in Florida under the company name of Italico Aviation USA. The other two manufacturers are both located in other countries (Cessna LSA's are manufactured in China; Piper LSA's are manufactured in Czechoslovakia). In fact, Italico Aviation USA will be the only original equipment manufacturer of Lights Sports Aircraft in the United States.
At this headquarters location, Italico Aviation USA plans to create 55 new positions over the next 4 years with more than a $3.2 million capital investment. In addition to manufacturing LSA's, Italico Aviation USA is expanding their research and development to this site as well as making this site the distribution center for all their sales in the western hemisphere.
"We are excited to begin manufacturing in the United States," said Eros Spinozzi, President of Italico Aviation and Italico Aviation USA. "The Kissimmee location is perfect as it offers us access to everything we need, from a great workforce, strategic location, a tremendous customer base and most importantly the Florida sunshine that enables us to showcase our planes year round."
"Italico's choice to locate in Florida reflects our ability to help international firms achieve their business goals through the partnerships, resources and talent the state offers," said Florida Secretary of Commerce Gray Swoope, who serves as president & CEO of Enterprise Florida Inc., the state's lead economic development organization. "We welcome Italico to Florida's business community and look forward to the new opportunities the company will bring to our citizens."
City of Kissimmee Mayor Jim Swan stated, "We share great pride in Italico's decision to expand their operation here. It is a testament that Kissimmee and Osceola County are great places for international companies to start, expand and continue to prosper."
Partners in this project include the State of Florida, Enterprise Florida, Osceola County, the City of Kissimmee and the Metro Orlando EDC.
"As the nation's busiest tourism destination it is no surprise that aviation companies are attracted to Metro Orlando," said Rick Weddle, President and CEO of the Metro Orlando EDC. "Our low-tax environment, expedited permitting processes and incentives are also attractors for the manufacturing industry."
Italico Aviation USA received approval from the state, county and city for a Qualified Target Industry (QTI) tax refund with a High Impact Sector Bonus whose total amounts to $550,000, which is awarded based on meeting contractual performance requirements including job goals.
Facility named after Airbus pioneer and founding father, Roger Béteille
French Prime Minister inaugurates A350 XWB Final Assembly Line
23 October 2012 Press Release
French Prime Minister, Jean-Marc Ayrault and Airbus President and Chief Executive Officer, Fabrice Brégier this morning officially inaugurated the 74,000 square-metre A350 XWB Final Assembly Line (FAL), in Toulouse, France. At full production, the FAL will employ some 1,500 people who will build up to ten aircraft a month as from 2018.
The ceremony, held inside the FAL, was attended by French political representatives, regional officials representatives from other Airbus home governments, as well as Airbus customers, suppliers, top executives and over 1,000 employees.
“Innovation is deeply rooted in our DNA and this is fully demonstrated on the A350 XWB, the world’s newest, most advanced airliner. Today we honour Roger Béteille, an exceptional aviation pioneer and we name the A350 XWB Final Assembly Line after him, one of our industry’s greatest innovators,” said Fabrice Brégier, Airbus President & CEO.
“It is a great honour for me to have my name associated with this magnificent, state of the art A350 Final Assembly Line, “said Roger Béteille. “Airbus’ success is a concrete example of how European partners working hand in hand can achieve incredible things together and this has been an essential ingredient to becoming the world’s largest and premier aircraft manufacturer.”
Guests at the ceremony were able to see the A350 XWB coming to life, with the first two aircraft (the static aircraft and the first flyable aircraft, MSN1) at different stages of final assembly.
The static aircraft, which will be used solely for ground tests, has nearly completed assembly, with a full fuselage, two wings and the vertical tail plane joined. The aircraft will be transferred to the static test hangar at the Toulouse Jean-Luc Lagardère site to be prepared for static tests to start in spring 2013. The first flyable A350 XWB (MSN1) is also progressing well, with the fuselage already joined. The wing, vertical and horizontal tail plane for MSN1 are inside the FAL and will be joined to the fuselage in early November.
Béteille was one of Airbus’ four founding fathers. He was instrumental in the development of fly by wire flight controls, one of Airbus’ key innovations which has since become the industry standard. Béteille’s was also responsible for the introduction of the world’s first two engine wide-body aircraft, the A300 which performed its first flight 40 years ago. With the inauguration of this new FAL, Airbus celebrates the world’s newest generation two engine wide-body aircraft, the A350 XWB.
South Korea's flag carrier seeks synergy with potential acquisition of Korea Aerospace
The Korea Herald
Publication Date : 20-11-2012
Korean Air is speeding up efforts to nurture the aerospace business as its future growth engine, unveiling yesterday a plan to create a 1-million-square-metre industrial cluster in Busan by 2020.
Adding to its existing 710,000-square-metre tech centre, established in 1976, the nation's largest flag carrier plans to set up a new 230,000-square-metre centre and related facilities at another 150,000-square-metre site in the coming years.
Korean Air is the only air carrier in the world that both produces and repairs aircraft. The new facilities will house factories for aircraft assembly, structure manufacturing and other research and development activities, officials said.
The company, with an injection of 1.5 trillion won (US$1.3 billion) in the expansion project, aims to increase its current 600 billion won sales in the aerospace sector to 1.6 trillion won in 2017 and 3 trillion won in 2020.
"We plan to elevate our aerospace business to the stage, in which we can produce mid-sized airplanes for ourselves by 2020," Korean Air president Ji Chang-hoon told reporters.
"About 50 per cent of the global airplane market is dominated by Airbus and Boeing, and Korean Air spends 2 trillion won every year buying their planes. Based on our buying power, we also could secure orders from both companies."
The company also expected to create synergy with its potential acquisition of the nation's sole aircraft maker Korea Aerospace Industries (KAI).
Korean Air joined the bidding war to buy KAI in August and the race gained fresh momentum with the unexpected participation of Hyundai Heavy Industries in September.
The final bid is scheduled to start on November 30.
"It is true that Hyundai Heavy outpaces Korean Air in terms of funding. But there is no change in our original stance that we would not join the bid if the sale price is set too high," said Cho Won-tae, Korean Air's managing vice president.
"KAI, which focuses on the defence industry, has different business areas from our Busan tech centre. If we acquire KAI, they would be operated like Hyundai and its affiliate Kia, which sometimes compete each other."
Rejecting market speculation that Korean Air is struggling to secure capital for the potential acquisition, worth about 1.4 trillion won, Cho added the company has already completed a funding plan.
US$1 = 1,082.8 South Korean won
Cape Verde Hub could create 75,000 aviation jobs as a gateway into Africa
Posted at aviationmatch.com on Nov. 13, 2012
Capital Consulting Group seeks capital via Dubai-based road show for aviation hub on Cape Verde Islands; aim is to follow in footsteps of Dubai so 50 million passengers have access to Afria via Cape Verde Islands.
Indexed as one of the top three African countries as the safest destination for foreign investment by the Mo Ibrahim Foundation, the country shows exemplary economic promise due to its political stability, strategic location and investment-friendly rules and institutions.
Cape Verde is also a member of the World Trade Organisation and of the Economic Community of West African States (ECOWAS), which has a total population of 300 million and a combined GDP of $703bn.
All these factors have led to increased investment, tourism and trade from Europe and the Americas in recent years. Cape Verde now wants to develop its economy further, and having studied a number of successful global aviation hubs, they believe Dubai's is the one they should use as their blueprint.
This is why Capital Consulting has engaged French company Naseba to organise a road show in Dubai later on November 27th and 28th at the Ritz Carlton in DIFC -- to raise capital for the creation of the 'Gateway to West Africa' -- a strategic aviation hub on the Cape Verde Islands which will cater for 50 million passengers per year.
The country's government has shown unwavering support for the initiative because aviation has always been strategically important to Cape Verde's evolution and it remains instrumental in driving the country's future growth. Sal International Airport has served as a commercial springboard for growing hospitality and tourism, and a conduit for its numerous infrastructural projects. It therefore forms a fundamental pillar to the continual GDP growth in Cape Verde and growth in ECOWAS and the West Africa region.
The project will be executed in three phases via a long term plan. Phases one and two will see an investment of EUR310m create 15,000 new construction jobs and develop the airline and airport so they are fully operational. The final phase, requiring investment of a further EUR3bn, will ensure the goal of a consumer-centric and commercially driven strategic aviation hub is achieved, similar to Dubai International Airport. It will also see a further 75,000 aviation jobs created in Cape Verde.
Mr Mário Paixão Lopes, President of the Board of Administration of The National Airport Authority (ASA), explained, "Our airports are a central part of our Government Strategic Plan to grow and become an important aviation hub in the region. Travel, tourism, trade and hospitality are some of the sectors identified as key drivers of our growth."
He continued by adding, "Growth in these sectors has to be matched by a corresponding expansion in the aviation infrastructure capacity."
Her Excellency Mrs Sara Maria Duarte Lopes, Minister of Infrastructure and Maritime Economy of the Republic of Cape Verde, reemphasised the project's importance, stating that it is a "priority for our country's economic development goals within the West African region."
By providing efficient transportation services, the proposed hub will enhance the competitiveness of Cape Verde's economy and "attract foreign direct investment and integrate our local companies with the global business community," noted Ambassador José Armando Duarte, President and CEO, Cape Verde Investment Promotion Agency.
Many African airlines are currently blacklisted from flying to the European Union due to safety reasons. The proposed project will provide more than two billion customers with a way into Africa through Cape Verde. As Ambassador Duarte explained, "Our strategic location in the Mid-Atlantic Ocean makes it a perfect air and sea hub for the economic crossroads from West Africa to Europe and South and North America."
Naseba Chairman Scott Ragsdale concluded, "We are proud to have been mandated by Capital Consulting to organise and host a capital raising initiative to help achieve a strategic aviation hub on the Cape Verde Islands. The country is the perfect gateway into Africa, and completion of this project will have a profound effect on Cape Verde's economy -- and Africa as a whole."
Governor Scott Breaks Ground On Embraer’s New Engineering And Technology Center
On November 28, 2012, in News Releases, by Staff
~ Engineering Technology Center to create 200 jobs in five years. ~
Governor Rick Scott today was joined by Frederico Curado, President & CEO of Embraer S.A., and Gary Spulak, President, Embraer Aircraft Holding, Inc. to break ground on Embraer’s new Engineering and Technology Center, which will bring 200 jobs to Melbourne, Florida over the next five years.
“As we continue to create a better business climate, we are also bringing more jobs to Florida,” Governor Scott said. “These 200 new jobs mean more families will be able to bring a paycheck home, and although our work isn’t done, we’ll continue to work to grow jobs so every Florida family can enjoy the American dream.”
Embraer’s 67,000 square-foot (6,224 sq. m.) Engineering and Technology Center will conduct research and development for both product and technology across Embraer’s business lines. Embraer is one of the world’s leading aircraft manufacturers for commercial, agricultural and executive aviation, in addition to defense and security support. It is only the second research and development facility established outside of their headquarters in São José dos Campos, Brazil.
When considering where to locate their new center, Embraer looked to the availability of greenfield start-up land and the proximity to established operations, along with a state and local pro-business climate.
Sikorsky Continues to Expand Its Capabilities in Colombia
STRATFORD, Conn., Nov. 1, 2012 /PRNewswire/ -- Sikorsky Aircraft today announced it has expanded its support of the Colombia Armed Forces BLACK HAWK helicopter fleet by opening an office in Bogota, Colombia. In addition, Sikorsky will open South America's first BLACK HAWK helicopter training center in Melgar, Colombia, in early 2013. Sikorsky is a subsidiary of United Technologies Corp.
The new office will employ 10 people and provide the Colombian Ministry of Defense with a central, in-country point of contact for managing all aspects of business with Sikorsky including aftermarket support, program management, and administrative requirements. Sikorsky Areospace Services, the aftermarket business of Sikorsky Aircraft, already operates a Service Depot in Tolemaida, Colombia.
"Colombia is a longtime strategic customer and valued partner," said Mick Maurer, President, Sikorsky Aircraft Corp. "Our continued investments in support services exemplify Sikorsky's solid commitment to enhance the Ministry of Defense and the Colombian Armed Forces' fleet availability and operational readiness. We remain dedicated to providing strong support directly where our customers operate."
Rectrix Aviation Launches Business Operations at Worcester Regional Airport
WORCESTER, Mass., Nov. 1, 2012 /PRNewswire/ -- Massachusetts Lieutenant Governor Timothy Murray, Congressman Jim McGovern, the Massachusetts Port Authority (Massport), local elected officials and community and business leaders today joined Rectrix Aviation for the official launch of the company's business operations at Worcester Regional Airport.
Rectrix, which provides premium private jet, aircraft management and fixed-based operations services in Florida and Massachusetts, is now an official service provider at Worcester Regional Airport, which is owned and operated by Massport.
"Worcester is an ideal location between Boston and New York, and we're excited to mark the official launch of business operations here," said Rich Cawley, president and CEO of Rectrix Aviation. "The general aviation industry contributes hundreds of millions of dollars to our local economy, and we're committed to bringing new jobs and economic growth to Massachusetts."
Rectrix recently won a multi-million dollar contract from Massport to develop world class fixed-base operations (FBO) services at Worcester Regional Airport and L.G. Hanscom Field. The development will create nearly 100 new jobs and each location will be large enough to accommodate large corporate aircrafts. Rectrix is also investing about $5 million to develop 27,000 square feet of hangar and office space in Worcester.
"Governor Patrick and I are thrilled to welcome Rectrix Aviation's business expansion to Worcester Regional Airport," said Lieutenant Governor Timothy Murray. "With this investment, Rectrix is not only expanding its footprint in Massachusetts but also supporting the state's aviation industry and regional economy."
The general aviation industry, which includes airports, maintenance facilities, manufacturers, suppliers and other support businesses, is a $150 billion industry in the United States – creating more than a million jobs nationwide. In Massachusetts alone, the state's 30 general aviation airports generated more than $443 million and supported more than 4,300 jobs in 2010, according to the Massachusetts Statewide Economic Impact Study, published recently by the Massachusetts Department of Transportation Aeronautics Division.
"This announcement is great news for Massachusetts aviation and for the greater Worcester community," said Congressman Jim McGovern. "I am excited to welcome Rectrix to Worcester, and thrilled that they are going to be part of the future of Worcester Regional Airport."
The Worcester and Bedford facilities are expected to be completed within two years and both will qualify for the Leadership in Energy and Environmental Design (LEED) Silver certification standards that were established by the U.S. Green Building Council.
"An investment in Worcester Regional Airport is an investment in the economy of Massachusetts,'' said Massport CEO Thomas P. Glynn. "Rectrix's investments in Worcester and Hanscom Field will create jobs and are tangible examples of Massport facilities being economic engines for the region."
"I am excited to see investment and job creation at this level in Worcester and at the Worcester Regional Airport," said Worcester Mayor Joseph Petty. "This demonstrates Worcester Regional Airport is an expanding economic driver in our community."
Thursday's event at Worcester Regional Airport included remarks and a tour of aircraft onsite.
"Massport's airline industry reach, market relationships and reputation are second to none and are why Rectrix will now be flying our friendly skies," said Worcester City Manager Michael O'Brien. "Rectrix's strong record of quality service is a welcome addition to the Airport. They will invest millions, create 100 new jobs and meet the aviation needs of our growing global business community. We welcome them with open arms for it is a true win-win-win for our local economy."
"It's an exciting time in Massachusetts and the Commonwealth has the opportunity to take advantage of the growing aviation industry to create jobs and generate new economic development," added Cawley.
Boeing Opens First System Integration Laboratory for KC-46 Tanker Program
Oct. 31, 2012 -- Boeing [NYSE: BA] has opened the first KC-46 Tanker System Integration Laboratory (SIL) to support testing and reduce risk in the development of the U.S. Air Force's next-generation aerial refueling tanker.
"Opening this lab says a lot about Boeing's commitment to executing on this contract," said Maj. Gen. John Thompson, Air Force Tanker Program Executive Officer and KC-46 Program Director. "My congratulations to the entire team."
The lab, known as "SIL 0," opened on Sept. 12 -- three weeks ahead of schedule -- at Boeing Field in Seattle. It will be used to test commercial avionics and software for integration into the KC-46A Tanker. Three more SILs will open at Boeing Field and a fifth will open in Everett, Wash., by the end of 2013.
"Our five System Integration Labs will help keep us on track to deliver the first 18 KC-46A Tankers by 2017," said Maureen Dougherty, KC-46 vice president and program manager. "Accelerating system integration will drive out issues prior to flight testing and reduce risks to our schedule."
"The integration and test phase of the KC-46 program will draw on industry-leading expertise from across Boeing," said Dennis O'Donoghue, vice president, Boeing Test & Evaluation. "We have a strong and experienced team with an outstanding history of testing derivative aircraft."
Boeing Field also is home to the program's Boom Assembly Center, which opened on Oct. 16, and the Finishing Center, scheduled to open in late 2013, where military hardware and software will be installed onto the commercial 767 airframe on which the tanker is based.
Boeing is currently executing the KC-46 Engineering, Manufacturing and Design contract, which calls for the delivery of 18 combat-ready aerial refueling aircraft by 2017. The company anticipates building 179 KC-46A Tankers to support the U.S. Air Force requirement to replace its aging fleet of KC-135 tankers. The program remains on track for its next milestone, a Critical Design Review that will take place in mid-2013.