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https://smallcaps.com.au/structural-monitor...cvm-technology/

 

Structural Monitoring Systems on runway to commercialising its CVM technology

By George Tchetvertakov - March 24, 2020

 

Technology company Structural Monitoring Systems (ASX: SMN) has achieved a highly significant milestone as it progresses towards delivering its commercially-critical supplemental type certificate (STC) sometime in the third quarter of 2020.

 

However, the current COVID-19 pandemic could still prove a significant stumbling block, despite the company shifting its entire board and senior staff to an equity-only compensation structure and deploying âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“material compensation cutsâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ÂÂ, possibly for the remainder of this year to reduce cash burn.

 

The company specialises in developing technology that can monitor and test the structural integrity of various materials and products such as aircraft, ships, power plants and rolling stocks.

 

In a statement to the market, Structural Monitoring said with all required signatures from the Federal Aviation Administration (FAA) technical standards branch managers obtained, the company has âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“clearly achievedâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ its previously communicated milestone within the time parameters indicated.

 

Moreover, Structural Monitoring said it intends to leverage its commercial partnerships with Delta Air Lines, Delta Engineering and Sandia Labs to acquire full commercial approval for CVM use as applicable to the inspections required for the radome installation related to Ku and 2Ku installed WiFi systems.

 

Certifying CVM

According to Structural Monitoring, CVM offers a novel method for in-situ, real-time monitoring of crack initiation and propagation.

 

CVM is a measure of the differential pressure between fine galleries containing a low vacuum alternating with galleries at atmosphere in a simple manifold.

 

The companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s management told the market that completion of its intellectual property would effectively pave the way for an âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“all-importantâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ STC approval for on-aircraft use, whereby CVM would significantly mitigate or replace the requirement for ground-based hangar inspections.

 

With the FAA now releasing stage two of its issue paper, Structural Monitoring said its technical team has been given far greater clarity regarding the final process requirements to achieve final STC certification.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“It is therefore expected that the culminating stage three and four milestones will present minimal challenges, and move much quicker to completion, relative to the receipt of the stage two document,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ the company said.

 

Future progress

Having achieved its critical stage two milestone, Structural Monitoring published its near-term expectations, which includes moving into stage three with Delta Engineering with its engineering team now tasked with reviewing and providing feedback to the FAA.

 

Once the companyâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s feedback is processed, the FAA is expected to update the issue paper and establish a conclusion.

 

Upon receiving a decision from the FAA, Delta Engineering and Structural Monitoring will address the final certification requirements and will then proceed to final STC certification/approval of CVM for use on WiFi antenna structure inspections.

 

According to Structural Monitoring, both stages three and four could be completed by the end of the year, although the impact of the COVID-19 remains largely unknown.

 

âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The company fully expects stages three and four to be completed by Q4 2020, but this forecast will be more optimistic if the global situation improves in the ensuing months,âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ it said.

 

Once the FAA has issued the issue paper, Structural Monitoring intends to deploy marketing efforts for commercial sales, remaining fully focused on striking deals with the likes of United Airlines, Republic Airways, Southwest Airlines, RyanAir, Air France and KLM.

 

Furthermore, the company said due to industry awareness and âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“excitementâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ related to the FAA issue paper, it has initiated âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“key discussionsâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’‚ with a major US airline to identify additional structural inspections for future CVM technology use beyond the scope related to WiFi inspections âââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ a deal that would supplement the existing relationship with Delta Air Lines.

 

The aircraft types set to benefit from Structural Monitoringâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s technology will initially be the B737, B757 and A320 aircraft families, as well as the Embraer E170 and E190 aircraft types.

 

This morningâââہ¡Ãƒâ€šÃ‚¬ÃƒÆ’¢Ã¢Ã¢â€š¬Ã…¾Ãƒâ€šÃ‚¢s news had an immediate impact on Structural Monitoring shares, which more than doubled to $0.50 per share, up 140% by afternoon trade.

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Interesting times!

Boeing terminates $4.2 billion deal with Embraer

 

New York (CNN Business)Boeing has terminated its $4.2 billion deal with Brazilian aircraft maker Embraer, the American company announced Saturday. The deal would have given Boeing a bigger stake in the market for smaller jets and help the company develop airplanes more cheaply.

 

Embraer responded Saturday in a press release that it will "pursue all remedies against Boeing for the damages incurred." It called Boeing's decision a wrongful termination.

In its press release, The Brazilian company made reference to the Boeing 737 Max's two fatal crashes that have cost the aircraft maker at least $18.7 billion. Embraer said the company was manufacturing "false claims" to avoid paying the $4.2 billion because of its "own financial condition and 737 Max and other business and reputational problems."

The two had planned to create a joint venture by April 24, but the deadline passed without Embraer satisfying the necessary conditions, according to Boeing, which declined to go into details about the specific unmet conditions. The Brazilian company said it believes it fully satisfied the deal's conditions.

"It is deeply disappointing," Marc Allen, Boeing's president of Embraer partnership and group operations, said in a press release. He said that over the past several months, Boeing had "productive but ultimately unsuccessful negotiations" with Embraer that couldn't be resolved by the April 24 deadline.

Under the terms of the deal, Boeing would own 80% of Embraer's commercial aircraft operations, while Embraer retained 20% ownership. It would have helped Embraer, a leading maker of small passenger jets, compete with Canadian rival Bombardier, which joined Airbus in a similar partnership announced in 2017.

In 2018, Boeing and Embraer said they expected to close the deal by late 2019, pending regulatory approval. The deal faced an antitrust probe from the European Union. Boeing said Saturday that all regulatory authorities had approved of the deal, except for the European Commission.

A separate joint venture between Boeing and Embraer for marketing and supporting the C-390 Millennium military aircraft remains intact.

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Hi All,

Outlook appears to be improving in the US towards airlines. :biggrin: \

 

Cheers

Dr_Dazmo

 

https://www.cnbc.com/2020/06/07/stock-market-futures-open-to-close-news.html

 

U.S. stock futures were higher early Monday, building on the previous week’s sharp gains on optimism over the economy reopening.

 

Dow Jones Industrial Average futures rose 216 points, or 0.8%. The move implied an opening gain of about 200 points. S&P 500 futures jumped 0.5%. Nasdaq-100 futures were up 0.1%.

 

Stocks tied to the reopening of the economy led the gains once again in premarket trading. Airlines, retailers and cruise lines were higher. United was up 10%. Kohl’s added 6%. Shares of Carnival Corp. were up more than 16%.

 

JPMorgan Chase and Citigroup are both up more than 23% quarter to date while Hilton Worldwide is up 27.8%. American Airlines shares are up 52.5% in that time while Delta and United have gained 19.7% and 34.4%, respectively.

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saw this on another site

SMN is currently priced at about $0.48 with a M/C of about $56 million.

With the assistance of some of the largest airplane industry players (Delta, Sandia and others) SMN and its partners have now forwarded to FAA their final submission for approval of their CVM technology. After over 7 years of submissions, they consider that full approval for their CVM technology for 2k WI Fi and structural frames will be approved in full by the end of 2020.

 

To support the share price in the meantime the SMN fully owned subsidary, AEM, as well as being the manufacturer of the CVM kits, with its own customer base, mainly rotorcraft, had sales of over $18 million last year and is expected to have the whole company at breakeven this year. This subsidiary business alone would be valued at the total market cap of $56 million. So future sales of the CVM kits will go straight to the bottom line.

Trial kits have already been installed in airplanes and helicopters and after establishing themselves in aircraft they can then concentrate on kits for buildings and bridges.

 

SMN intends to be paying dividends within the first 2 years of FAA approval. Any future competitor would have to go through the strenuous FAA process.

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Hi All,

Saw this & thought it was interesting given the recent sale to Intelsat of Gogo's commercial WiFi business & our CVM WiFi application.

 

 

Cheers

Dr_Dazmo

 

https://runwaygirlnetwork.com/2020/09/27/in...internet-model/

 

 

Intelsat to Delta: We can support free inflight Internet model

 

Intelsat firmly believes it can support Delta Air Lines’ plan to offer free inflight Internet to passengers once its $400 million acquisition of Gogo’s commercial aviation unit is completed. More broadly, the satellite operator sees an opportunity to reset Gogo’s arrangements with airlines to bring far better economics to the equation, and ergo put serious wind in the sails of the global Ku IFC value proposition.

 

“We look at what Delta wants to do†in terms of free inflight browsing, said Intelsat SVP, mobility Mark Rasmussen, and “we think that is where a lot of airlines are going to go. I think Delta had a concern that there was not enough capacity to do it before, but this [acquisition of Gogo CA] changes that. This changes everything.

 

“We can now bring to bear all the resources of our fleet that are possible fairly quickly to help support what they want to do, and with owner economics and pure vertical integration, we absolutely plan to offer to airlines services that are really fast, and at economics that make it possible for them to offer free Wi-Fi if they choose.â€

 

It won’t surprise readers to learn that Intelsat intends to work hard to hold onto as many Delta tails as possible, even as the US major considers its multi-source IFC options under a newly amended 2Ku agreement with Gogo. “Yes. In my own personal view and humble opinion, I think there is everything they need right here. That’s my view,†Rasmussen told Runway Girl Network.

 

 

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Hi All,

Thought this was an interesting read, especially in relation to older aircraft.

I haven't posted the entire article, but the first paragraph.

 

Cheers

Dr_Dazmo

 

https://www.fool.com/investing/2020/11/01/southwest-airlines-weighs-737-max-7-vs-a220-order/

 

For the vast majority of its history, Southwest Airlines (NYSE:LUV) has exclusively operated one aircraft type: the Boeing (NYSE:BA) 737. However, the company is finally thinking about changing that. During Southwest's third-quarter earnings call, management said that it plans to place a major order for jets in the 140 to 150 seat range as soon as late 2021. While the airline is considering Boeing's 737 MAX 7, it is also looking at the rival Airbus (OTC:EADSY) A220-300.

 

It won't be an easy decision. Both models have major strengths and weaknesses from Southwest's perspective. Yet the best decision might be to avoid the choice altogether by keeping the carrier's 737-700s in service longer. Here's why.

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Hi All,

Looks like Ryanair has a different view to many in the aviation industry.

 

Dr_Dazmo

 

 

https://www.9news.com.au/world/coronavirus-...ab-f6ac2330f496

 

Aviation boss rubbishes dire outlook, predicts airlines on brink of boom time

 

By Mark Saunokonoko • Senior Journalist

2:22pm Nov 11, 2020

 

Struggling airlines Qantas and Virgin Australia are on the cusp of boom time with news a coronavirus vaccine is close, an aviation boss has predicted.

Ryanair supremo Michael O'Leary has rubbished aviation industry forecasts that the sector will take years to recover from the pandemic downturn.

"There's going to be an enormous snapback on travel demand," Mr O'Leary, an Irish billionaire businessman never afraid to swim against the tide of popular opinion, said.

 

Speaking at the World Travel Market conference, he said Ryanair expected air passenger numbers to bounce back to almost normal levels by the middle of next year.

"I've heard a lot of rubbish coming from legacy airlines that it'll be 2035 till the volumes come back. Rubbish. Volumes will go back in 2021 or 2022 pretty quickly," he said.

 

Mr O'Leary said his predictions were based on coronavirus vaccines being "widely available to high-risk groups" by March next year.

Today, Federal Health Minister Greg Hunt said Australia was well-placed to have vaccines in the country by March.

Against a backdrop of Qantas posting record-revenue losses and Virgin going into voluntary administration, Mr O'Leary projected Ryanair was "at the dawn of an extraordinary era of growth".

If accurate, the news will breathe new life into Australian carriers, who are many months into the devastating and complete shutdown of their international routes.

With its fleet mothballed, Qantas lost $2.7 billion in the year to June.

 

Qantas boss Alan Joyce confirmed in August his airline was losing an eye-watering $40 million every week.

The national carrier has stood down about 20,000 employees, and axed thousands more jobs. The trickle down effect has been huge.

Cash-strapped Virgin Australia collapsed in April, after it had fallen into more than $5 billion in debt before the pandemic even hit.

US private equity group Bain Capital swooped in to buy the stricken airline.

In October Air New Zealand chief executive Greg Foran told the Sydney Morning Herald it would take at least until 2023 for demand to return to pre-coronavirus levels.

 

Speaking in August to CNBC, Qantas chief executive Joyce said he expected the airline would have only recovered 50 per cent of its international market by its 2022 fiscal year.

An effective, widely distributed coronavirus vaccine could radically alter those gloomy projections.

 

 

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Hi All,

Looks like Ryanair has a different view to many in the aviation industry.

 

Dr_Dazmo

 

 

https://www.9news.com.au/world/coronavirus-...ab-f6ac2330f496

 

Aviation boss rubbishes dire outlook, predicts airlines on brink of boom time

 

By Mark Saunokonoko • Senior Journalist

2:22pm Nov 11, 2020

 

Struggling airlines Qantas and Virgin Australia are on the cusp of boom time with news a coronavirus vaccine is close, an aviation boss has predicted.

Ryanair supremo Michael O'Leary has rubbished aviation industry forecasts that the sector will take years to recover from the pandemic downturn.

"There's going to be an enormous snapback on travel demand," Mr O'Leary, an Irish billionaire businessman never afraid to swim against the tide of popular opinion, said.

 

Speaking at the World Travel Market conference, he said Ryanair expected air passenger numbers to bounce back to almost normal levels by the middle of next year.

"I've heard a lot of rubbish coming from legacy airlines that it'll be 2035 till the volumes come back. Rubbish. Volumes will go back in 2021 or 2022 pretty quickly," he said.

 

Mr O'Leary said his predictions were based on coronavirus vaccines being "widely available to high-risk groups" by March next year.

Today, Federal Health Minister Greg Hunt said Australia was well-placed to have vaccines in the country by March.

Against a backdrop of Qantas posting record-revenue losses and Virgin going into voluntary administration, Mr O'Leary projected Ryanair was "at the dawn of an extraordinary era of growth".

If accurate, the news will breathe new life into Australian carriers, who are many months into the devastating and complete shutdown of their international routes.

With its fleet mothballed, Qantas lost $2.7 billion in the year to June.

 

Qantas boss Alan Joyce confirmed in August his airline was losing an eye-watering $40 million every week.

The national carrier has stood down about 20,000 employees, and axed thousands more jobs. The trickle down effect has been huge.

Cash-strapped Virgin Australia collapsed in April, after it had fallen into more than $5 billion in debt before the pandemic even hit.

US private equity group Bain Capital swooped in to buy the stricken airline.

In October Air New Zealand chief executive Greg Foran told the Sydney Morning Herald it would take at least until 2023 for demand to return to pre-coronavirus levels.

 

Speaking in August to CNBC, Qantas chief executive Joyce said he expected the airline would have only recovered 50 per cent of its international market by its 2022 fiscal year.

An effective, widely distributed coronavirus vaccine could radically alter those gloomy projections.

 

 

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Dr_Dazmo, what's your assessment of Michael O'Leary's comments? Personally, I can see no reason why the tourist market will not bounce back very quickly. Pent-up demand will provide a powerful stimulus to this section of the market. Business travel, on the other hand, may be more problematical. If, as has been widely suggested, many businesses have become accustomed to the use of Zoom and its ilk, those customers may well take significant time to return to a pre-Covid19 behaviour pattern. The consequences for individual airlines may therefore be heavily contingent on their respective product mix.

Cheers

 

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