Aviation Trek

Thales and Diehl join Airbus to develop flight control computers for CityAirbus NextGen

Cologne, 17 November 2021 – Airbus has signed a trilateral agreement with Thales and Diehl Aerospace for the joint development of the flight control computers of CityAirbus NextGen. The central flight control system of CityAirbus NextGen, the electric vertical take-off and landing vehicle (eVTOL) being developed by Airbus, will combine extraordinary computing power with lightweight design and highest safety standards.

Diehl and Thales are joining Airbus in investing into the emerging eVTOL market. Both partners are developing their own system that will be integrated into a dissimilar architecture to comply with the new EASA regulation for eVTOL. This architecture is essential to ensuring the redundancy of the computers and the vehicle’s safety. The developments will be supported with public funding from the German and French governments, respectively.

Thales is responsible for the primary computing system, while Diehl is developing the secondary flight control computer. The system ensures that the second, independent flight control computer monitors the data of the primary computer system permanently, and it can also take over the flight control itself.

Thales has more than 40 years of experience in electrical flight controls, having supplied the systems for the first ever fly-by-wire commercial airliner, the Airbus A310. Diehl Aerospace, a joint venture of the French partner Thales and Diehl Aviation, has many decades of experience in avionics for civil and military aircraft and helicopters.

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The fully electric CityAirbus NextGen was revealed in September 2021 at the Airbus Summit. It is equipped with fixed wings, a V-shaped tail, and eight electrically powered propellers as part of its distributed propulsion system. It is designed to carry up to four passengers in a zero emissions flight in multiple applications. CityAirbus is being developed to fly with a 80 km range and to reach a cruise speed of 120 km/h, making it perfectly suited for operations in major cities for a variety of missions. It is optimized for hover and cruise efficiency, while not requiring moving surfaces or tilting parts during transition. Designed with simplicity in mind, CityAirbus NextGen will offer best-in-class economic performance in operations and support. The first flight of a prototype is planned for 2023. Airbus is developing a UAM solution with eVTOLS not only to offer a new mobility service for urban areas but also as a first step in its quest to reduce emissions in aviation all over its product range.

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@AirbusHeli @ThalesAerospace @DiehlAviation @EuropeanRotors #CityAirbus #UAM

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Airlines

Alaska Airlines Acquisition of Hawaiian Airlines Reshapes the Air Travel Landscape

Alaska Air Group, Inc. (NYSE: ALK) and Hawaiian Holdings, Inc. (NASDAQ: HA) jointly announced today the execution of a definitive agreement, signifying Alaska Airlines’ acquisition of Hawaiian Airlines at a cash price of $18.00 per share. The total transaction value stands at approximately $1.9 billion, encompassing Hawaiian Airlines’ net debt of $0.9 billion.

The combination of complementary domestic, international, and cargo networks

This strategic union is poised to open up an array of additional destinations, providing consumers with increased choices in crucial air service options across the Pacific region, Continental United States, and globally.

The transaction is anticipated to establish a robust platform for growth and competition in the U.S., offering enduring employment opportunities, ongoing community investments, and a commitment to environmental stewardship.

Key Points:

Acquisition Overview:
- Alaska Air Group to acquire Hawaiian Holdings for $18.00 per share in an all-cash transaction, totaling approximately $1.9 billion.
- Combined company aims to maintain the strong, high-quality brands of Alaska Airlines and Hawaiian Airlines.
Fleet Expansion and Network Reach:
- Creates the fifth-largest U.S. airline with a fleet of 365 narrow and wide-body airplanes.
- Enables access to 138 destinations through combined networks and over 1,200 destinations via the oneworld Alliance.
Hub Development and Connectivity:
- Honolulu to become a key hub for the combined airline, offering expanded services to the Continental U.S., Asia, and the Pacific.
- Tripling the number of destinations from Hawai‘i to North America, while maintaining robust Neighbor Island service.
Commitment to Hawai‘i:
- Strong commitment to Hawai‘i, ensuring robust Neighbor Island air service.
- Aiming for a more competitive platform supporting growth, job opportunities, community investment, and environmental stewardship.
Employee and Union Commitment:
- Commitment to maintaining and growing the union-represented workforce in Hawai‘i.
- Immediate value creation with at least $235 million of expected run-rate synergies.
Investor Call and Timeline:
- Investor conference call scheduled for today at 5:00 p.m. ET / 2:00 p.m. PT / 12:00 p.m. HT.
- Anticipated closing of the transaction within 12-18 months.
Strategic and Financial Rationale:
- Complementary networks to enhance competition and provide greater choice for consumers.
- Preservation of both Alaska and Hawaiian Airlines’ brands on a single operating platform.
- Expected to deliver high single-digit earnings accretion for Alaska Airlines within the first two years.
Community and Sustainability Commitment:
- Focus on growth in union-represented jobs and strong operational presence in Hawai‘i.
- Commitment to environmental stewardship, aligning with Alaska Airlines’ five-part path to net zero by 2040.
Synergies and Accretion:
- Expected run-rate synergies of at least $235 million.
- Transaction multiple of 0.7 times revenue, approximately one third the average of recent airline transactions.
Conditions to Close:

Approval by regulatory authorities and Hawaiian Holdings, Inc. shareholders.
Expected to close in 12-18 months, with the combined organization based in Seattle under the leadership of Alaska Airlines CEO Ben Minicucci.