Mexico Aerospace 2022 - Impact Report

IMPACT REPORT

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Despite the uncertainty the COVID-19 pandemic brought to the global aerospace sector, the local industry continues recovering and Mexico remains an attractive destination for local and foreign aerospace investment.

As international air traffic gradually returns to pre-pandemic figures and domestic traffic thrives, Felipe Ángeles International Airport (AIFA) began operations to ease the oversaturation at Mexico City International Airport and reduce delays. While commercial aviation recovers, air cargo faces major disruptions due to the Russia-Ukraine conflict and the e-commerce boom, among other problems. Meanwhile, industrial companies continue advancing toward more sophisticated processes to meet the big players’ demands despite ongoing global supply chain strains, further straining air cargo.

Amid these turbulent times, local and international industry leaders joined the conversation at Mexico Aerospace Forum 2022 to discuss the main trends, challenges and opportunities that the aviation and aerospace industries are facing. The aerospace sector has increasingly played a larger role within Mexico’s economy, expanding to more states and creating jobs and business opportunities across the country.

On April 27-29, 2022, experts from both the public and private sectors discussed the current state of the aerospace industry in Mexico, from AIFA, Queretaro’s aerospace potential and airline-airport synergies to the supply chain of the future, commercial aviation trends and opportunities in air cargo.

4

C onf e r e nc e I mpact

121

Breakdown by job title

companies

419

conference participants

17% CEO/CFO/Country Manager 54% Manager/Director 08% President/VP/ Partners 21% Analist/Engineer/ Executives

56

speakers

03

sponsors

2710

visitors to the conference website

Conference social media impact

Pre-conference social media impact

7,494 direct impressions during MAF 2.86% click through rate during MAF 7.469% conference engagement rate

14,867 direct pre-conference LinkedIn impressions 2.99% pre-conference click through rate 10.448% pre-conference engagement rate

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155

Matchmaking intentions

participants

425

matchmaking communications

542 Trading Total

940

229 Networking 81 Investment 88 Recruitment

44

1:1 meetings conducted

5

C ompan y Att e ndanc e •

A.E. Petsche Company

•

AAFI

•

Able industrial products

•

ADDEV MATERIALS

•

Aernnova

•

Aeroasset

•

Aerocharter

•

Aerocluster de Querétaro

•

Aeromexico

•

•

Delegacion general de Quebec en México

•

Polymershapes

•

PPG Aerospace

•

Delta Air Lines

•

Pragmatic

•

DHS INTERNATIONAL

•

•

Embajada de Bélgica/ AWEX México

Procesos Control Numérico Computarizado S.A. de C.V.

•

PROEESA

•

Embajada de Hungría

•

•

Embassy of Belgium to Mexico

Quality Aeronautical Engineering Consultants

•

Questum

AERONODO, SAPI, S.A. DE C.V.

•

ESCUELA DE VUELO CAP. OMAR TAPIA MARQUEZ

•

RER Energy Group

•

RX Global

•

Aeropilot

•

Facultad de Medicina, UNAM

•

Safran

•

Aeroprocess TTT

•

FAMEX

•

•

Aeropuerto Intercontinental de Querétaro, SA de CV

•

FedEx Express México

•

FEMIA

Salem & Associates Aeronautical Consulting Group

•

Aeropuerto Internacional Felipe Ángeles, S.A. de C.V.

•

FUMEC

•

•

G100 Desarrollos

•

Aeropuertos y Servicios Auxiliares

•

GE Infrastructure Queretaro

•

•

AEXA

Gobierno de Ontario en México

Secretaría de Desarrollo Sustentable del Poder Ejecutivo del Estado de Querétaro

•

SEDECO EDOMEX

•

Air France KLM

•

Grupo Prodensa

•

SEDESU

•

Air France KLM Cargo

•

grupo xenon

•

SITA

•

Airbus Americas, Inc

•

GTO Automotive

•

•

Airbus SLC

•

Helmut Fischer

•

Airworthy, Inc.

•

Horizontec SAPI de cv

Soluciones Tecnológicas Térmicas Nitrex Querétaro S De RL De CV

•

Allied Tool & Die

•

HT-MX Heat Treat & HIP

•

SPACELAB

•

Altair

•

IATA

•

•

AMBE Engineering

•

Infor

SUMe, Sustentabilidad para México

•

ASESA MRO, S.A DE C.V.

•

Innocentro

•

Swiss Business Hub

•

Axon’ Cable

•

INNOVA 2 ELEVATE

•

TAR Aerolineas

•

Azul PR

•

Inxeniux Creative Technology

•

TE Connectivity

•

Brella Ltd

•

IRS Technology

•

Teague

•

Business Intelligence Group

•

ITA

•

Techman-Head

•

CBQ GLOBAL LLC

•

JeffreyGroup

•

Tecnológico de Monterrey/ Nanotechnology and Devices Design Research Group, P.I.

•

Tecnológico Nacional de México

•

CLEANLAB SOLUTIONS

•

KAMAN AEROSPACE

•

Cluster Aeroespacial de Baja California

•

Kayak

•

KPMG México

•

COMCE - Mexican Business Council for Foreign Trade, Investment and Technology

•

Laser & Manufacturing

•

Laserkasky

•

TEST

•

LAVARTEX

•

Thrusters Unlimited

•

CONACYT

•

Leach International Mexico

•

UAT FI-UNAM

•

CONICSO S.A.S

•

LH Cargo / LCSLM

•

•

Consejo Aeroespacial de Jalisco A.C.

•

M Aerospace RTC

Universidad Aeronáutica en Querétaro

•

Makinovo

•

Consultoría de Imagen Pública y Política

•

MB

Universidad Autónoma de Chihuahua

•

MBN

•

UPMH

CORPORATIVO ULTRA DE MEXICO

•

Metal Finishing

•

Viva Air

•

Mexico Business

•

WASHTECH S.A. de C.V.

•

Yuma Engineering

• • •

Cramex Aerospace

•

N1 Capital

•

DB Schenker

•

Nitto Denko

•

DECSEF

•

NYX

6

P rogram D ay 1

09:00

ONE WAY TICKET TO THE FUTURE OF COMMERCIAL AVIATION

Moderator: José Ricardo Botelho, ALTA Panelists: Félix Antelo, Viva Air Group

Giancarlo Mulinelli, Aeroméxico

Ricardo Bastón, TAR Aerolíneas 10:00

PASSENGER EXPERIENCE IN THE POST-COVID-19 ERA

Moderator: Alicia Arizpe, Mexico Business News Panelists: Livier Bustos, Delta Airlines

Filipe Pereira, ALTA

Anthony Harcup, Teague

Lise Vives, Kayak en México

Guilhem Mallet, Air France KLM Group in Mexico 11:00

NETWORKING OPPORTUNITY

12:00

COMMERCIAL AIRPLANES: TECHNOLOGY TRENDS SHAPING TOMORROW’S VALUE PROPOSITION

Moderator: Abraham Sarraf, Airworthy Panelists: Amanda Simpson, Airbus

José Enrique Román, Boeing Research and Technology

Maurilio Albanese Novaes Junior, Embraer 13:00

TOWARDS MORE RESILIENT, DYNAMIC AEROSPACE SUPPLY CHAINS

Moderator: René Espinosa, FEMIA Panelists: Alberto Robles, General Electric Aviation

Roberto Corral, Innocentro

Eugenio Marín, FUMEC

Jatziri Barrios, Turboparts Specialists ETU-Aerospace 14:00

NETWORKING OPPORTUNITY

15:00

MEXICO’S ROLE IN THE AEROSPACE SUPPLY CHAIN OF TOMORROW

Moderator: Tomás Sibaja, Baja Aerospace Cluster Panelists: Luis Carlos Ramírez, Chihuahua Aerospace Cluster

Claire Barnouin, Monterrey Aerospace Cluster

Antonio Velázquez, Queretaro Aerospace Cluster

Alejandro Arredondo, Bajio Aerospace Cluster 16:00

QUERETARO’S AEROSPACE COMPETITIVENESS

Speaker: Marco Antonio Del Prete, SEDESU Queretaro 16:15

QUERETARO POTENTIAL AS AN AEROSPACE POWERHOUSE

Moderator: Carlos Robles, AMBE Engineering LLC Panelists: Enrique Sosa, UNAQ

Jorge Gutiérrez de Velasco, AIQ

Juan Carlos Corral, Queretaro Aerospace Cluster

Marco Antonio Del Prete, SEDESU Queretaro 17:00

THE FUTURE OF FAMEX 2023

Speaker: Gen. Javier Sandoval Dueñas, FAMEX 2023

7

P R O G R A M D AY 2

09:00

WHAT CAN THE AVIATION INDUSTRY EXPECT FROM FELIPE ÁNGELES INTERNATIONAL AIRPORT?

Speaker: Colonel Alain Reynaldo Solana Arévalo, AIFA 09:30

AIRLINES & AIRPORTS: SYNERGIES FOR GROWTH

Moderator: Carlos Campillo, Alegre, Calderón y Márquez Abogados SC Panelists: Ricardo Dueñas, Grupo OMA

Jorge Gutiérrez de Velasco, AIQ

Gen. Isidro Pastor Román, AIFA

Mauricio Arellano Villavicencio, ASA 10:30

OPPORTUNITIES IN AN ERA OF CARGO DISRUPTIONS

Moderator: Frank Nozinsky, Lufthansa Cargo Panelists: Jorge L. Torres, FedEx Express México

Guillaume Marsoin, Air France KLM Martinair Cargo

Luis Ramos, Aerocharter

Luis Sierra, MAS Air 11:30

NETWORKING OPPORTUNITY

12:30

HOW TO CAPITALIZE ON MEXICO’S MRO OPPORTUNITIES

Speaker: Jorge Vega Cleto, ASESA MRO 13:00

HYDROGEN AIRCRAFT: THE NEXT STEP IN SUSTAINABILITY

Speaker: Damien Sternchuss, Airbus Latin America and the Caribbean 13:30

HALCÓN 2: AIRPLANE DESIGNED AND MANUFACTURED IN MEXICO

Speaker: Giovanni Angelucci, Horizontec 13:45

INSIDE STORY OF HALCÓN 2: FIRST MADE-IN-MEXICO AIRPLANE IN 70 YEARS

Moderator: Antonio Salem, Salem & Associates Aeronautical Consulting Group Panelists: Humberto Montaño Valdez, Horizontec

Edgar Martínez Ortega, Horizontec

Rigoberto Sánchez Vivar, Horizontec

Giovanni Angelucci, Horizontec 14:30

NETWORKING OPPORTUNITY

15:00

ADVANCED AIR MOBILITY: A NEW FRONTIER IN AVIATION

Speaker: Antonio Campello, INNOVA 2 ELEVATE 15:30

AEROSPACE WORKFORCE OF THE FUTURE

Moderator: Enrique Sosa, UNAQ Panelists: Salvador Landeros Ayala, Mexican Space Agency

Ana Molina, Airbus Helicopters México, Querétaro

Efraín Pérez, Safran 16:30

ADVANCED AIR MOBILITY: A NEW FRONTIER IN AVIATIONS

Speaker: Luis Gerardo Lizcano, FEMIA

8

C onf e r e nc e H ighlights ONE WAY TICKET TO THE FUTURE OF COMMERCIAL AVIATION The pandemic brought challenges but also

4Q20. The airline “will continue to expand

growth opportunities to the aerospace

operations safely in the coming months,

sector and, although Mexico’s aviation

in accordance with local regulations and

industry has seen a fast recovery from the

customer demand and in full compliance

COVID-19 pandemic, there are still numerous

with the highest standards and protocols,”

obstacles ahead, agreed industry experts.

said Aeroméxico in its 4Q20 report.

“Colombia-Mexico is the fastest growing region in the world. This is because both countries faced the pandemic the best possible way they could, considering that there was no government support”

Felix Antelo President and CEO | Viva Air Group

Aside from the COVID-19 crisis, the Ukraine conflict is delaying the industry’s recovery by increasing fuel prices and hur ting economies. These trends could further delay the sector’s recovery from the pandemic and change the future of commercial aviation.

“The world is reopening and traveling limitations are dropping; we will see a traveling boom,” said Antelo. In the future

While the slowdown in travel was widespread,

of aviation, Mexico will be an attractive

the effects of the pandemic hit regions and

destination despite the growing competition

airlines differently. For example, Viva Air

but high fuel prices and the shortage of

Group experienced an unexpected growth in

qualified professionals could hamper the

operations after the outbreak of the COVID-19.

growth of the industry in Latin America.

The airline now has 60 percent more

Consumers, on the other hand, are

passengers than it did before the sanitary

benefiting because it has never been less

crisis and was the only Colombian airline

expensive to fly.

that did not file for Chapter 11 bankruptcy protection. In Sep. 2020, Viva Air restarted

Giancarlo Mulinelli, Senior Vice President,

operations as an entirely different company,

Global Sales, Aeroméxico, forecasts a

explained Felix Antelo, President and CEO,

promising future for the region because

Viva Air Group. It now flies to 45 domestic

Asians and Europeans are increasing their

destinations and 15 international ones. The

visits to Latin America. “We are in a very

fast recovery of Colombia’s aviation industry

unique position as a region to capture that

mirrors the one Mexico is experiencing.

traffic,” he said. Corporate traveling is also expected to bounce back and vaccine

“Colombia-Mexico is the fastest growing

tourism will remain in the spotlight. In the

region in the world. This is because both

future of commercial aviation, Aeroméxico

countries faced the pandemic the best

“wants to develop economies, bring job

possible way they could, considering that

opportunities and make a positive impact

there was no government support,” said

for everybody,” added Mulinelli.

Antelo. According to Ricardo Bastón, Chief Executive Officer, TAR Aerolineas, in Mexico

For years, technology has been an important

the lack of government support prompted

ally of the aviation industry, which can now

the industry to work together during the

help it recover and transform. “It has never

crisis. For TAR, connectivity was essential

been easier to interact with an airline,” said

in enduring the pandemic, said Bastón.

Antelo. Viva Air Group has taken advantage of the acceleration in digitalization amid the

Aeromexico, for its par t, repor ted an

COVID-19 pandemic. The group launched

increase in revenue of 114.3 percent in 4Q21

a WhatsApp channel to offer its services,

versus 4Q20. Its passenger traffic, however,

b e co m e m o re re s p o n s i ve a n d l owe r

fell 4.8 percent in the period compared to

costs. After the pandemic, costumers are

9

C onf e r e nc e H ighlights increasingly demanding faster and simpler

each other, he added. For that reason, the

processes, which is why the airline heavily

airline was the first in Colombia to go back

invested in a new website that has improved

to the office and currently, it continues to

its services.

advocate for a hybrid model. Furthermore, he warns that the transition to full digital

“Now customers like to fully have control

models will lead to the loss of 15 to 20

and the pandemic has made people less

percent of corporate traffic.

tolerant,” said M ulinelli. To face this , Aeroméxico has invested in self-service

To increase traffic, airlines should also

tools and B2B platforms. It also improved

look to improving passenger experience

its Club Premier program, bringing more

and rely on technology to improve cost

benefits to users . The airline aims to

management. The use of biometrics will

continue innovating to simplify travel by

become widespread, with China and the

putting its clients at the center.

Middle East already implementing them in their traveling processes, said Bastón.

While interconnection has brought several

He also highlighted the importance of

benefits for passengers, it also posed

using sustainable aviation fuels (SAF)

challenges to the industry, said Antelo.

and emerging transportation alternatives.

Regardless of the advantages that the

“Innovation is positive and, as an industry,

connection that the online platforms offer,

we are all taking advantage of it,”

to build culture, people must interact with

said Bastón.

IMPROVING PASSENGER EXPERIENCE COULD DRIVE RECOVERY COVID-19 lockdowns were some of the

to travel again. During 2021 aviation and

greatest challenges the aviation industry

tourism started to pick up but full recovery

faced in modern history. Two years after the

has been unequal between regions. To

start of the pandemic, with vaccination rates

keep adapting to both uncertainty and

increasing globally and travel restrictions

higher user experience standards, airlines

slowly decreasing, the aviation industry is

and airports have made their policies more

beginning to recover while it keeps adapting

flexible and have relied on technology to

to the uncertainty that continues permeating

ease passengers’ fears and facilitate travel

the sector. Besides recovering the lost

while keeping them protected.

passenger traffic, airlines must also deal with more demanding customers, who are looking

Domestic travel within countries has shown

for expediency, comfort and safety.

the strongest recovery. During the past 18 months, the US Transportation Security

After lockdowns and travel restrictions put

Administration (TSA) reports that domestic

the aviation industry on hold during 2020,

travel has recovered and is approaching

the industry has recovered as restrictions

its pre-COVID levels. Delta Airlines, for

ease and passengers are increasingly willing

example, expects to see a 90 percent recovery during 2022 for its US domestic

“The airport or the airline is not the issue. The issue is the uncertainty during the entire process that begins when you start planning your trip.

This is what creates anxiety before and during travel”

Anthony Harcup Senior Director of Airline Experience | Teague

leisure flights, said Livier Bustos, General Manager Mexico, Delta Airlines. However, corporate travel is a different story, with Delta reporting that these flights remain at only 50 percent from 2019 levels. Business travel is expected to star t recovering at a faster pace af ter 2 H2 2, as more workers head back to the office, which will eventually lead to the reactivation of business travel, said Bustos.

10

C onf e r e nc e H ighlights International flights are still reeling from

business capacity to create incentives for

th e un ce r taint y c a use d by COVI D -1 9

certain market segments that are currently

tr ave l re s tr i c ti o n s a n d th e p ote nti a l

n ot d oin g co rp o rate trave l , a llowin g

emergence of new COVID-19 variants and

potential flyers to use business class tickets

lockdowns. With vaccination rates and

for leisure travel, said Guilhem Mallet,

travel restrictions varying from country

General Manager, Air France-KLM Group

to country, passengers remain exposed to

in Mexico.

last-minute changes in their travel plans.

“The airport or the airline is not the issue.

In the reac tivation of international

The issue is the uncertainty during the

travel, governments play a crucial role.

entire process that begins when you start

With diverse health policies and travel

planning your trip. This is what creates

restrictions, mobility remains complex

anxiety before and during travel,” said

for inte rnational passe nge rs , leading

Anthony Harcup, Senior Director of Airline

industr y associations to approach

Experience, Teague. To adapt, regain trust

governments to simplify and align these

in traveling and face volatility, Harcup

diverse requirements. For example, the

suggests alliances with travel agencies,

International Air Transport Association

which offer comfort and reassurance to

( I ATA ) w o r k s w i t h g o v e r n m e n t s t o

customers during unpredictable changes.

convince them that the implementation

Travel agencies are now being used by 33

of easier, simple and more aligned travel

percent of travelers.

requirements that are integrated to global best practices will incentivize passengers

Passengers’ changes in travel behavior

to travel internationally again. “Dealing

can also bring opportunities for airlines.

with health authorities was never at the

With business travel on hold, passengers

center of the aviation industry operation

who were used to traveling in business

until the pandemic. We had to learn their

class are now looking for more comfort

d yn a m i c s a n d d rive r s to co ll a b o rate

when traveling on their own. Airlines have

together,” said Filipe Pereira, Regional

seen a sharp rising demand for premium

Director, the Americas Airport, Passenger,

economy seats, making them consistently

Cargo and Security, IATA. Collaboration

overbooked, notes Harcup. Some airlines,

with governments remains key for the

such as Air France-KLM , are using its

sector’s reactivation.

11

C onf e r e nc e H ighlights Policies implemented by airlines are crucial

to reactivate,” said Lise Vives, Country

to their recovery as they can improve

Manager, Kayak Mexico.

passenger experience throughout the entire process. “Removing most change

As the world begins to overcome COVID-19,

fees in the face of unpredictable travel

the goal in the aviation industry is to get

restrictions helps gain trust back from

passengers to fly again, as it is essential

travelers,” said Bustos.

for economic recovery. Restrictions and uncertainty may remain in the short term

However, diverse policies and options

so both airlines and passengers will have

increase complexity for passengers when

to keep adapting to changing realities. As

planning their trips. “The pandemic pushed

countries and regions cease restrictions

airlines to adapt and change their policies,

for mobility and leisure, passengers will

making it hard for passengers to keep up.

increasingly resume their travel plans.

Now passengers have more responsibility

With the implementation of all the lessons

than before to be very well informed,

learned in the past two years, increased

here is where developing technology to

flexibility, exceptional customer service

facilitate the process and understanding

and technology will help the aviation

of options becomes relevant for air travel

industry to recover.

SUSTAINABILITY, TECH, TALENT SHAPING COMMERCIAL AVIATION Te c h , s u p p l y c h a i n c o n t i n u i t y a n d

the integration of novel technologies

sustainability are shaping aviation into a

such as artificial intelligence (AI) will be

resilient, value-based industry. As they

fundamental to optimize the operations

recover from the COVID -19 pandemic,

and processes and make the most of our

commercial airlines are jumping into

resources and time,” said Novaes. AI ,

digitalization, sustainable practices and a

coupled with other technologies, will enable

self-sufficient supply chain for a long-term

autonomous flights, air frames, hybrid

successful business.

processes and electric proportions, among other technologies, he added. “Autonomous

Net-zero emission flights are one of the

flight technology will be an industr y

main objectives for commercial airlines,

disruptor that will force us to reimagine the

said Maurílio Albanese Novaes Júnior, Chief

way we fly,” Novaes said.

Technology Officer, Embraer. The Brazilian OEM expects to achieve this goal by 2050

“In the short term, AI will play a central

in line with the Paris Agreement to limit

role in increasing safety. However, initial

global warming to 1.5°C. “In this process,

applications should be monitored carefully

12

C onf e r e nc e H ighlights until we are 100 percent sure about the results

by MBN. The company also committed

of increased automation,” said Amanda

to d e live r com m e rcial airpla n es th at

Simpson, Vice President of Research and

are capable of flying using 100-percent

Technology, Airbus. But the process goes

SAFs by 2030.

beyond operation. In manufacture, AI will determine sustainable processes but the

Changes in the aerospace industry take

human factor is responsible for correctly

between 10 and 15 years to be used in

nourishing AI algorithms, she explained.

commercial aviation, according to Simpson.

“For the industry to feel comfortable and

For that reason, companies are already late

safe, we have to be aware of the data that

to introduce their modifications to achieve

will enable predictivity,” said Simpson.

the 2050 net-zero goals . “And in this process, we need to, as an industry, have

Fleet renewal is another subject where AI

clear long-term future plans. What do we

can support companies in their journey

want the next aviation generation to look

to sustainability. Boeing, for example, is

like? Because these goals will change our

leading the fleet renewal trend as it aims

supply chains,” Simpson said.

to introduce more sustainable planes to reduce f uel usage and noise, said

For instance, Airbus made it a priority to

José Enrique Román, Vice President of

reach net-zero emission flights in part

Global Technology, Boeing Research and

through its initiative ZEROe, which involves

Technology. One of the company’s latest

the launch of the world’s first zero-emission,

achievements in this regard was the largest

hydrogen-powered commercial aircraft

purchase of sustainable aviation fuels

by 2035. But to be able to successfully

(SAF) for commercial airplanes, which is an

implement this measure globally, “we need

immediate solution that will help achieve

to have the necessary infrastructure. Thus,

the industry’s long-term commitment to

airports have to offer the right conditions for

net-zero carbon emissions by 2050.

these operations and for the clean energy flights we aim to implement in the future,”

“In the short term, AI will play a central role in increasing safety.

However, initial applications should be monitored carefully until we are 100 percent sure about the results of increased automation”

Amanda Simpson Vice President of Research and Technology | Airbus

said Simpson. The OEM is also studying solar-powered flights, which could be done using advanced photovoltaic solar panels.

These panels are lighter, more flexible and capable of capturing more energy per square meter while harnessing solar energy into a rechargeable energy storage system.

Talent shortages are another urgent subject to address for this industry. “Our careers are no longer attractive and as an industry,

“But beyond this change, as long as we

we need to join forces to continue bringing

integrate tech, more benefits will permeate

STEM to the educational system at an early

operations and traffic management systems

stage,” Román said. But to efficiently invest

for these fleets, which will optimize fuel

in the development of human capital, the

use by creating direct routings and help

industry “needs to be more human and

customers optimize planning,” said Román.

work ethically to promote teamwork and make this industry attractive. This is an

Boeing achieved net-zero manufacturing

investment in humans beyond math and

p ro ce s se s a n d wo rk site s in 2 02 0 by

physics,” said Novaes.

expanding conservation and renewable energy use, while tapping responsible

While the strategies are both numerous

off set s fo r g re e n h o u se g a s e missio n

and diverse, the best way to tackle industry

manage me nt, as previously re por te d

challenges is an “all the above” adoption

13

C onf e r e nc e H ighlights process, said Román. “Tech, sustainability,

the aerospace sector. Nonetheless, “we

collaboration and human talent all matter

need to face these disruptions with the

equally. We have to prioritize all these areas

min dset of p ossible opp or tunities to

to overcome the impact of the pandemic

design and change the way we fly, as

while avoiding a sustainability crisis,”

well as to collaborate to grow together

Román said.

and contribute to our passengers and the environment,” said Abraham Sarraf,

Sustainability, net-zero flights and other

Vice President Sales and Business

m e g a tre n d s wi l l co n ti n u e to d i s r u pt

Development, Airworthy.

TOWARDS MORE RESILIENT, DYNAMIC AEROSPACE SUPPLY CHAINS COVID-19 came to shake well-established

to Marín. In previous times, clusters were not

supply chains and the Ukraine-Russia conflict

as fast to cooperate with each other, which

further complicated the logistics sector,

reduced the value they brought to the supply

affecting numerous manufacturing industries

chain. Now, clusters are working together to

including aerospace. To face this situation,

get and train talent to remain prepared for the

adaptability is key to a dynamic and resilient

demands of foreign companies that want to

supply chain that can keep the sector moving

invest in Mexico.

forward. But, the only way to build these resilient, adaptive supply chains is through

Collaboration is the name of the game, said

collaboration, agree industry experts.

Alberto Robles, Strategic Supply Chain Manager, General Electric Aviation. In the

Aerospace clusters in Mexico and abroad

past, aerospace was not considered to be

are playing an essential role in boosting

essential so the sector focused on lobbying

the recovery of the aerospace industry.

to advocate for the industry. Through more

Clusters around the world have supported

strategic partnerships among industry

manufacturers, helping them to integrate

clusters and FEMIA, the industry is gradually

within supply chains. Academia, OEMs

removing the obstacles to help the industry

and Tier 1 companies have also been allies

keep moving forward. “We need to work

during this process, leading players to tackle

closer with our allies. We are competing

challenges through joint ventures. One of

with emerging regions in the world and we

the key factors that have boosted the role

ought to start looking for opportunities,”

of clusters is communication, which will also

said Robles.

be essential for future growth in Mexico.

“Communication and integration of domestic

Meanwhile, more aggressive strategies are

clusters will be a revolutionary practice for

being implemented while supply chains

Mexico’s aviation sector,” said Eugenio Marín,

are being diversified to avoid shortages.

CEO, FUMEC.

Moreover, some companies are starting to incorporate new materials and rely more

“Creating a resilient supply chain is like acquiring an insurance policy: it represents a cost but it is better to have it and not need it than to need it and not have it”

Carlos Robles

on technology. “We are busier now, have good financial planning and we have shifted to digitalization,” said Roberto Corral, President, Innocentro. For the acceleration of adaptability, technology was crucial. This has been a huge leap for companies, which are now pouring investment into tech, said Marín.

President and Head of Aerospace | AMBE Engineering LLC

The experience of all actors during the pa n d e mic va rie d wid e ly, as did th eir Clusters are taking an even more important

adaptation strategies . Innocentro, for

role in Mexico’s aerospace industry, according

example, became a hybrid company to

14

C onf e r e nc e H ighlights

have a broader reach while keeping in

and quickly recover. “Creating a resilient

touch with employees. During this period,

supply chain is like acquiring an insurance

the company also embraced new work

policy: it represents a cost but it is better to

models that allowed employees to increase

have it and not need it than to need it and

productivity and satisfaction. “Becoming

not have it,” said Robles.

a hybrid company helped our team stay motivated and continue posting brilliant

Transparency and information sharing

results. We thought that if the company

throughout the supply chain are immediate

helped its employees work better from

ac tions companies c an implement to

home, this work model could turn into an

mitigate hidden risks. They should also

asset,” said Corral.

diversif y their supply portfolio, create and protect supply networks and develop

Small and medium-sized enterprises (SMEs)

b u sin e s s co ntin uit y p la n s . M o re ove r,

underwent a more challenging process.

o r g a n iz a t i o n s m u s t b e i m m e r s e d i n

SMEs faced a disproportionate challenge

forecasting and consider all the upcoming

in adapting their processes and only those

challenges. “What if?” questions should be

that have moved with agility have survived.

answered to avert catastrophic outcomes.

“SMEs underwent quite a journey. It is

Mexico, in particular, must start investing

important to recognize those who thrived

in advanced manufacturing. “ We must

through this period of uncertainty. We did

look at the future and work towards that,”

not know what was coming or how long

said Robles.

it would take to pass. As a manufacturing company, the recovery has come with a lot

As the COVID-19 havoc is not over yet, the

of challenges such as the political global

sector must be prepared. “The pandemic is

context,” said Jatziri Barrios, Director

not over; we need to be ready for another

Turboparts Specialists, ETU-Aerospace.

outbreak. Moreover, the Ukraine war has destabilized operations. Mexico needs to

Although the sec tor is recovering ,

be ready and develop its capabilities. The

companies must implement strategies to

country has an opportunity to join the big

build more resilient supply chains that can

leagues if we work together to close gaps

handle future shocks. Supply chains must be

and invest in innovation and technology,”

prepared to endure highly disruptive events

said Barrios.

MEXICO TO CONSOLIDATE ITS ROLE IN THE SUPPLY CHAIN OF TOMORROW International supply chains have been

COVID-19. The aerospace supply chain is no

challenged by raw material shortages,

exception. As the global economy recovers

logistics delays and reduced capacity due to

from the shock of the pandemic, supply

15

C onf e r e nc e H ighlights chains in all industries are rebuilding. Mexico

will need and encourage youth to pursue

is in an interesting position in the international

STEM careers, which will nurture Mexico’s

aerospace supply chain and consolidating it

competitiveness in strategic industries,”

could bring further economic growth, social

said Ramírez.

development and technological innovation.

To do so, Mexico needs to tackle certain

“ Specialized human resources are

challenges.

fundamental. Those involved in the supply chain need a specific skill set and research

To improve its competitiveness in the

capabilities that can ignite and foster

aerospace supply chain, Mexico first needs to

innovation,” said Velázquez. Likewise,

strengthen its transportation infrastructure,

“investing in talent and training of the skilled

said Antonio Velázquez, Managing Director,

workforce is what Mexico should be doing

Queretaro Aerospace Cluster. Beyond

if it wants to keep its position in the index

infrastructure and multimodal transportation,

of global players in the aerospace industry,”

the country also needs a reliable supply of

said Claire Barnouin, Executive Director,

energy and water, adds Velázquez.

Monterrey Aerocluster. Human capital and talent nurturing will intrinsically shape the

“Technology is a powerful enabler for economic development. When a country has its own capabilities to develop its own technology it has the possibility to remain competitive internationally”

future of innovation and competitiveness.

“If Mexico wants to be taken seriously in the global arena, we need a strong commitment at the national level to train our workforce.

Without talent there is no industr y,” said Barnouin.

Antonio Velázquez

M exico h as uniq u e o p p o r tunities fo r

Managing Director | Queretaro Aerospace Cluster

grow th and is increasingly becoming more attractive both in manufacturing and supplying the afterparts and repairs

O t h e r c h a l l e n g e s to t a c k l e i n c l u d e

services the aerospace industry demands.

cybersecurity breaches and bottlenecks and

“Services is an area where Mexico could

delays in ports, said Luis Carlos Ramírez,

grow competitively,” said Tomás Sibaja,

President, Chihuahua Aerospace Cluster.

President, Baja California Aerospace Cluster.

Likewise, Mexico has yet to improve its capital flow within the supply chain. If the circle of

One of Mexico’s pending accounts is the

capital becomes more agile through the right

local development of national technology.

support and incentives, the entire sector will

“Technology is a powerful enabler for

benefit, said Ramírez.

economic development. When a country has its own capabilities to develop its

Citing insights from the World Economic

own technology it has the possibility to

Forum (WEF), Ramírez highlights that

remain competitive internationally,” said

“supply chains are much more than systems,

Velázquez. Technological innovation also

structures and technology, they are also

creates a waterfall effect throughout entire

people, whose safety and wellbeing must

value chains. When a company implements

be upheld.” The COVID-19 pandemic is a

new technology, businesses throughout

reminder of the importance of human capital

the entire supply chain benefit, improving

throughout industrial activity. Therefore, to

efficiency and competitiveness.

improve competitiveness, the human factor must be prioritized. “We need to go back to

However, Mexico is not known for being a

basics and teach innovation culture from the

technology producer country; it is known as

early stages in education to give our future

a technology consumer country. Mexico’s

professional workforce the needed skills for

co n ditio n a s a te ch n olo gy co nsu m e r

the technological advancement the industry

country is unlikely to change in the short

16

C onf e r e nc e H ighlights

term. To boost the aerospace supply chain

of what companies need to improve to favor

in Mexico, investment and collaboration

national competitiveness,” said Arredondo.

to produce inhouse innovation is key. The country also needs to implement strategies

Mexico has a privileged geographical

that allow for the fast incorporation of

location that allows it to position itself as a

innovation into industrial processes and

node for global commerce and supply chain

procedures. “The tricky part is how to

distribution. It also has competitive and

get traditional manufacture companies,

capable talent that can perform high-quality

most from which are family-owned SMEs

work and boost economic growth. However,

to understand the added value they could

to boost competitiveness of its national

get from digitizing their operation, as

suppliers, public policies and a coordinated

opposed to following traditional methods,”

government strategy are essential. “Mexico

said Barnouin.

has not asked for anything in exchange from the foreign companies that arrive in

To achieve the leap forward, Mexico needs

the country. Landing is very easy. We need

local technological production generated

to start asking those companies for local

through the joint efforts of the government,

industry development in return to catch up,”

companies, academic institutions and R&D

said Arredondo.

centers. In this scenario, the government needs to lead innovation effor t s and

“We need a national policy and strategy

support companies that are committed

to grow the local aerospace industry and

to local R&D, said Alejandro Arredondo,

provide the commercial and business

M a n a g i n g D i re c to r, B a j í o Ae ro s p a ce

environment to capitalize on our talent and

Cluster. Meanwhile, academic institutions

increase our competitiveness,” said Barnouin.

need to adapt quickly to form the required

With a national guideline and united efforts

human talent for new technologies. “In

between sectors and stakeholders, Mexico

Mexico, better collaboration between

will achieve its full potential and consolidate

the government and the private sector is

itself as an international reference in the

required to achieve a better understanding

aerospace industry.

QUERETARO TO GAIN MORE PROMINENT ROLE IN AEROSPACE SECTOR Queretaro’s aerospace industry keeps

the state has the potential to take a more

growing despite challenges, with the state

prominent role in the aerospace industry.

playing a crucial role in the national and international supply chains. Thanks to its

Between 1999 and 2021, Queretaro received

labor force, universities and ideal location,

the most foreign direct investment (FDI) for

17

C onf e r e nc e H ighlights the aerospace industry in Mexico, for a total

Eurocopter, Aernnova, Tremec, ITP, Grupo

of US$981 million. Queretaro’s numerous

Safran and TechOps. The university is

aerospace companies manufacture

leading numerous aerospace projects,

aerostructures, complex components of

including some for the development of

aerostructures, landing gear, engines and

un m a n n e d a e rial ve hicles (UAV ) a n d

composite materials. Furthermore, the

composite materials, the latter alongside

state has capabilities for special treatments

SEDENA . Other projects include flight

and processes.

simulators for pilot training, developed with the Mexican Air Force and a femtosatellite

“We have equipped technical and technological universities in the state, including Universidad Politécnica de Querétaro (UPQ), Universidad Tecnológica de Querétaro (UTEQ) and Universidad Tecnológica de San Juan del Río (UTSJR)”

built with MxSpace through Thumbsat.

The university also performed research on nano, micro and picosatellites, launchers and navigation systems with the Mexican Space Agency (AEM).

UNAQ recently reached an agreement with Bombardier Aerospace for a fast-track

Marco Antonio del Prete

training program for the manufacture of

Minister of Sustainable Development | SEDESU Queretaro

harnesses for their aircraft. UNAQ is the only university in Mexico that focuses completely on aerospace studies.

Queretaro’s geographic location, near the ports of Manzanillo and Lazaro Cardenas,

These strengths have helped make the

has been essential to its success in the

state competitive. “We receive a superior

aerospace sector, said Marco Antonio

investment amount compared to the major

del Prete Tercero, Minister of Sustainable

municipalities in Mexico. We have the

Development of Queretaro (SEDESU). The

top grade on the national scale of stable

state is also centric and well connected to

perspectives. We were awarded fifth place

other strategic industrial states such as San

in the “Global Cities of the Future with

Luis Potosi, Irapuato, Leon, Guadalajara

Overall Economic Potential 2021-2022”

and Puebla. However, Queretaro’s main

and we are the second most attractive

asset is its talent, which is the result of

state for investment in Mexico,” explained

the industry’s strong collaboration with

del Prete. Additionally, Queretaro has

academia and R&D centers.

no public debt and has the healthiest finances, he added. It is also the third most

Q u e ret a ro’s m a in s tre n gth lie s in it s

competitive in Mexico.

education system, which has received s u p p o r t f ro m b oth th e i n d u s tr y a n d

In the aerospace industry, Queretaro is

the local government, said del Prete.

home to two OEMs, 26 Tier 1 and Tier 2

“ We h ave e q u i p p e d te c h n i c a l a n d

suppliers, five MROs, 19 general services

technological universities in the state,

companies, 12 research centers, four raw

in clu ding U nive r sida d Polité cnic a d e

material suppliers and seven academic

Querétaro (UPQ), Universidad Tecnológica

institutions, being in eight place among

de Querétaro (UTEQ) and Universidad

cities with the best FDI performance for

Tecnológica de San Juan del Río (UTSJR).”

the aerospace sector.

T h e s t a t e a l s o h o s t s M e x i c o ’s o n l y

“Q ueretaro has experienced a 20 0

a e ro n a u ti c a l u n i ve r s i t y : U n i ve r s i n a d

percent growth in aerospace companies

Aeronáutica en Querétaro (UNAQ). UNAQ’s

since 2006 . Most companies focus on

graduates usually work for multinational

manufacturing (72 percent), followed by

a e ros p a ce co m p a n i e s e s t a b li s h e d i n

R&D (13 percent) and maintenance and

the state, which include B ombardier,

repair (11 percent),” said del Prete.

18

C onf e r e nc e H ighlights QUERETARO: AN AEROSPACE POWERHOUSE Queretaro’s aerospace industry has been

R&D could be strengthened as a result of

growing steadily during the past ten years,

more investment in talent and infrastructure,

gaining relevance in Mexico and abroad.

supported by the triple helix and other

The state has become a key destination for

players. “[Queretaro] has excelled thanks to

foreign direct investment (FDI) thanks to the

the joint work from academia, the private

conditions the state offered to entrepreneurs

sector and government, but other actors

in the aerospace sector, agree experts.

could play a role,” said Jorge Gutiérrez de Velasco, Airport Manager, AIQ. The state’s

“The latter means that the state needs to develop more infrastructure, more capacity to broaden the panorama of investment and offer more competitive, trained professionals for the companies that need it”

industries and economy could benefit from incorporating these other players into the triple helix.

“Society and sustainability need to join the helix if we are working toward the netzero emissions goal for 2050,” said Marco del Prete Tercero, Queretaro’s Minister

Enrique Sosa

of Sustainable Development. The state’s

Dean | UNAQ

government is building bridges to facilitate the work of the helix, said del Petre: “We have implemented a close relationship

Among its strengths, Queretaro has highly

with groups from the organized society

qualified personnel at various technical

and we wish to integrate them to continue

a n d professional levels tha n k s to it s

growing in line with environmental and

numerous universities and training centers,

development goals.”

which include Mexico’s only aeronautical university, Universidad Aeronáutica en

Industrial parks and Queretaro´s strategic

Querétaro (UNAQ). “Talent is one of the

location are fundamental for the state’s

state’s long-term strengths,” said Enrique

success in the aerospace sector. “These

Sosa, Dean, UNAQ. “Thus, we need to focus

characteristics have allowed for the arrival

on developing more human capital and build

of key players like Bombardier, GE or Safran,

new skills to attract more processes in line

which improved the capacity of our local

with the needs of the sector.” Nonetheless,

supply chain,” said Juan Carlos Corral,

Queretaro still has a gap to close regarding

President, Queretaro Aerospace Cluster.

gender equality. Few women are entering this field, so “we need to break gender roles

T h e s t a t e , h o w e ve r, h a s a p e n d i n g

to encourage their participation,” said Sosa.

task in increasing the inclusion of local manufacturing companies into the supply

The state also provides continued political

chains of these international players. Supply

stability that led to the development

chains could be strengthened if international

of a six-year strategy to suppor t the

players manufacturing in the state would

aerospace industry and others. The sector

purchase 10 percent of their materials

is now focusing on developing numerous

locally, which would also increase “the need

te c h n o l o g i e s , i n c l u d i n g h i g h p owe r

for more power and energy, which could

electronics, propulsion systems, satellites

be sourced through startups and financial

and the space industry. “The latter means

agencies,” said Corral.

that the state needs to develop more infrastructure, more capacity to broaden

Q u e ret a ro ’s a e ro s p a ce i n d u s tr y i s

the panorama of investment and offer more

increasingly expanding its capabilities. For

competitive, trained professionals for the

example, it is strengthening its activities in

companies that need it,” said Sosa.

defense and space manufacture and moving

19

C onf e r e nc e H ighlights toward maintenance-oriented models, which

and technology transfer. Automotive

have to be offered in the state’s educational

company Vuhl, for example, used aerospace

centers to train more people in this field,

technology to develop one high-tech vehicle

said del Prete. “The government also wants

“and this is just one example of how much

the state to enter the space industry. With

we could support other industries such as

the democratization of space, this is an

pharmaceuticals, information technologies,

opportunity that goes beyond satellites.

and so on,” said Carlos Robles, President &

We want a Latin American and Caribbean

Head of Aerospace, AMBE Engineering LLC.

Space Agency (ALCE) office in Queretaro,” said del Prete. To do so, the government has

“Countries that work in the aerospace

been working with the Ministry of Foreign

industry train specialized workers, generate

Affairs (SRE) to create an office of ALCE in

more tech and technology transfer and

the state.

develop an advanced ecosystem, among other benefits. We do not work for the

Thanks to the aerospace industry, Queretaro

industry, we have this industry as part of

has seen job creation, economic growth

our development strategy,” said Corral.

FAMEX 2023 WILL WELCOME FRANCE AS THE GUEST OF HONOR Considering the challenging environment

FA M E X i s a n i m p o r t a n t a c to r i n th e

M exico’s aerospace sec tor faces , the

development of the local aerospace sector

Mexican Aerospace Fair (FAMEX)aims to

and is a member of the Mexican Federation

support Mexico’s economic development

of the Aerospace Industry (FEMIA), the

through the aerospace sector, attract

Mexican Council of Aerospace Education

Foreign Direct Investment (FDI), generate

(CO M E A), th e C o n s u lti n g C o u n c i l of

jobs and train future employees. This world-

the Aerospace Industry of the Ministry

class aeronautical, security and defense

of Economy (CCIA) and the College of

event is organized by SEDENA through

Mexican Aerospace Engineers (CIMA).

the Mexican Air Force and supported by the three levels of government, as well as

T h e e ve n t ’s m a i n o b j e c t i ve s a r e t o

public, private, academic and business

preser ve and guarantee national and

organizations.

internal security and to strengthen the Mexican Army and Air Force, according to the National Defense Sectorial

“FAMEX is supporting the continued

Program 2020 -2024. FAMEX also aims

advance of Mexico’s aerospace and

to position itself as the main promoter of

adjacent industries by connecting

the aerospace industry in Latin America,

companies, talent and providing a

supporting economic development, FDI

space for them to showcase their

attraction and academic and defense

projects and services”

investment. Moreover, FAMEX seeks to

General Javier Sandoval Dueñas

President | FAMEX 2023

reinforce military-civilian relationships through communication, transparency and respect and increase civilian thrust in Mexico’s Armed Forces.

“ FA M E X is sup p o r ting th e co ntin u e d

FAMEX was created in 2014. At the time,

a d v a n c e o f M ex i c o ’s a e r o s p a c e a n d

the Consultative Council of the Aerospace

adjacent industries by connec ting

Industry did not exist, FEMIA had just over

companies, talent and providing a space

40 members and COMEA did not have the

for them to showcase their projects and

proper promotion. Consequently, SEDENA

services,” said General Javier Sandoval

ought to organize FAMEX on its own. In the

Dueñas, President, FAMEX

2015 edition, FAMEX had less companies

20

C onf e r e nc e H ighlights participating than the fairs of Chile and

and education sectors. The participation of

Brazil. In 2017, FAMEX surpassed Brazil in

academia has been essential for the Mexican

expositors and in 2019 it surpassed Chile

industry, generating excellent up-to-date

and was recognized as the most important

academic programs that serve the changing

aerospace fair in Latin America.

needs of the industry. FAMEX also aims to be a platform where young researchers can

In 2018, the event improved thanks to the

promote their projects.

interest of the current administration in promoting the sector. Owing to this, FAMEX

“For 2023, FAMEX aims to innovate in

2021 attracted 317 companies, 129,800

several areas of opportunity. Regarding

attendants and 47 countries, with France as

academia, for example, we want to strengthen

the guest of honor. The event also hosted

the participation of public and private

4, 200 B2B meetings and 62 exhibition

national and international universities,” said

aircraft. On the other hand, Brazil and

General Sandoval.

Chile canceled their aerospace fairs that year. “Maintaining and advancing FAMEX’s

During FAMEX 2023, the space sector will

objectives despite the detrimental disruption

take a more prominent role compared with

of the COVID-19 pandemic speaks to the

prior editions. Space agencies from Mexico,

potential and expected growth of Mexico’s

France and the US are interested in meeting

aerospace sector,” said General Sandoval.

to exchange experiences and update collaboration agreements at governmental

For the 2023 edition, FAMEX will offer

levels. Moreover, France recognizes the

cultural events, networking cocktails,

quality of Mexican talent and dares to design

a e ros p a ce s h ows a n d i n a u g u ra l a n d

and manufacture key original equipment

closure ceremonies. It will also include a

parts in the Latin American country. France is

digital platform for enterprises to have B2B

Mexico’s main aerospace investor and has an

networking opportunities. Seminaries and

important impact in the country’s economy

forums will be offered. The upcoming FAMEX

and job creation. The guest of honor modality

event will be held in the new Santa Lucia’s

started in the 2019 edition with Canada, while

facilities with six exposition pavilions for the

in 2021, the US was the guest of honor, as

aeronautics, aerospace, defense, 4.0 Industry

reported by MBN.

AIFA OFFERS MUCH MORE THAN EXPECTED The airport system in the Valley of Mexico

“AIFA seeks to make operations safer for

has operated above capacity for almost

passengers and avoid airline expenses due

30 years. The Felipe Ángeles International

to delays generated by airport saturation

Airport (AIFA) was built to counteract

i n M e x i c o C i t y, ” s a i d C o l o n e l A l a i n

th i s s a t u r a ti o n a n d co m p l e m e n t th e

Reynaldo Solana Arévalo, Deputy General

metropolitan airport system, composed of

Operational Director, AIFA.

Mexico City International Airport (AICM) and Toluca International Airport.

The airport was one of President Andrés Manuel López Obrador campaign promises

AICM has been saturated since 1994, as

and began construction on Oct. 17, 2019,

estimated by the Ministry of Infrastructure,

in the Santa Lucía military base, State of

C o m m u n i c ati o n s a n d Tr a n s p o r t ati o n

Mexico, under the responsibility of the

(SICT) in accordance with the National

Mexican Army Corps of Engineers. Its first

Airport Law. Considering that AICM is the

construction phase was completed in 2.5

most important airport terminal in the

years and inaugurated on March 21, 2022.

country, this saturation poses a pressing problem for all airlines and passengers

AIFA has a 273,339 m2 terminal building,

that use it. Under these circumstances,

with an operating capacity of 19.5 million

21

C onf e r e nc e H ighlights

passengers per year. Its aeronautical

with a capacity of 21 million liters of turbo

infrastructure consists of two 4.5 km parallel

fuel. The airport’s infrastructure allows

runways of hydraulic concrete, suitable for

direct fueling through a subway pipeline,

landing any type of aircraft. In addition,

shortening refueling time and increasing

AIFA has a cargo and customs terminal for

operational safety. To increase security and

merchandise transportation, with a capacity

competitiveness, AIFA’s facilities have also

of up to 3 million tons per year.

been equipped with the latest technology available, decreasing user waiting times and

Since its inauguration, AIFA has carried out

improving comfort.

449 operations: 224 departures and 225 arrivals, mobilizing 46,052 passengers. At

Passenger processing is done either at the

the moment, only four airlines operate at

counter or through a virtual check-in using

AIFA: Aeroméxico, Volaris, Viva Aerobus

a mobile app. Then baggage documentation

and the Venezuelan airline Conviasa. “We

is done through a drop-off, shortening the

had a slow start; we are working to boost

passenger’s journey to the final departure

the airport and grow gradually,” said Colonel

lounge by about 15 minutes. AIFA also

Solana. AIFA also offers general aviation

maintains the safety measures to prevent

operations, hosting a total of 40 operations

COVID-19 infections through its touchless

carrying 74 passengers.

a n d p a p e rle s s p a s se n g e r p ro cessing system, which is also adapted for the

“AIFA is a sui generis airport… It has a great

use of electronic passports. “According

infrastructure for general aviation and for

to IATA, the technology implemented at

domestic and international cargo. However,

AIFA for passenger processing makes the

what distinguishes this airport is that it also

airport 74 percent faster, 61 percent more

has spaces for entertainment and business,”

intuitive, 50 percent more secure and [the

said Colonel Solana. AIFA’s surroundings are

experience] 72 percent more satisfactory,”

equipped with hotels, shopping malls and

said Colonel Solana.

spaces for cultural activities that seek to take advantage of the airport’s infrastructure to

A I FA a lso off e r s airlin es co m p etitive

generate a larger economic spillover and

costs in comparison to other airports in

incentivize businesses.

the area, said Colonel Solana. According to the Ministry of Finance (SHCP), AIFA’s

AIFA also has its own fuel farm, a series

fares are 13 percent lower on average than

of storage tanks buried underground,

those of AICM, some are up to 25 percent

22

C onf e r e nc e H ighlights less expensive. This represents a great

Mundo E Mall, the National Auditorium, the

incentive for airlines to operate in AIFA.

World Trade Center building, intermodal stations Indios Verdes and Ciudad Azteca

One of the largest criticisms AIFA received

and the AICM. Also, the State of Mexico

at the time of its inauguration was the

offers an articulated transportation system

lack of road connectivity that made it

to AIFA for MX$18 (US$0.88).

harder for passengers to travel to the airport. However, land connective has

“ We a r e s t r o n g l y c o m m i t te d to t h e

been expanded to facilitate access to the

satisfaction of our passengers and airlines

new airport, said Colonel Solana. These

that work with us; we are constantly

infrastructure works include improvements

seeking to improve,” said Colonel Solana.

to th e M exico - Pa ch u c a H ig hway a n d

AIFA has barely been operating for one

the State of Mexico Exterior Beltway.

month and its operators are continuously

Moreover, several private companies now

wo r k i n g to co n s o li d ate th e a i r p o r t ’s

offer transportation to AIFA from different

position. “We are analyzing our areas of

key points in Mexico City at a maximum

opportunity to keep improving and make

cost of MX$150 (US$7. 30). Depar ture

AIFA an airport of quality, warmth and

points include Perisur Mall, Santa Fe Mall,

efficiency that will drive Mexico’s growth.

AIRLINE, AIRPORT SYNERGIES LEAD TO GROWTH For the past two years, Mexico’s aerospace

business traffic and, while the first segment

and aviation sectors have focused on

is back up, the second has taken the longest

recovering activity flows and economic

to recover,” said Ricardo Dueñas, Director

stability after the COVID-19 pandemic.

General, Grupo OMA.

Now, the industry has shifted its goals and is also striving to advance its sustainability

“Trips to visit family and friends and tourism

plans and improve passenger experience

travel have been the fastest areas to recover.

to continue to be one of the main means

We saw the first indicators in 2020 but

of transportation for both passenger and

industrial business flights did not take

cargo. Airlines and airports are two of the

off until 2022. Just recently, Grupo OMA

main points on which the development of

experienced a 90 percent growth in this

the Mexican aerospace industry hinges.

type of flights, but this occurred two years after the COVID-19 outbreak,” said Dueñas.

Sustained efforts on traffic recovery have shown new industr y trends regarding

Passenger behaviors also changed hygiene

passenger behavior. “We used to have

measures and airport practices regarding

23 million passengers on domestic and

in-person contact between clients and staff,

23

C onf e r e nc e H ighlights which led to the adoption of measures to

to improve the area’s operation capabilities

best fit the passengers’ needs, Dueñas

by 50 percent. “For airports such as the

explained. These measures also respond

Queretaro Intercontinental Airport (AIQ),

to the sector’s long-time goal to increase

this measure aims to increase their capacity

air travel in Mexico, an objective that has

from 32 flights per hour to 48 per hour,”

been greatly advanced by the country’s

said Jorge Gutiérrez de Velasco, Director

ultra -low- cost airlines . These airlines

General, AIQ.

have greatly boosted local tourism to the point that they are now being recognized

Improving traffic at the metropolitan area

internationally for their achievements in the

will also require investing in novel industry

sector. “As Mexico’s middle class grows and

trends such as ambulatory flights, special

the population pyramid has more people

airport wings for low-cost airlines and the

old enough to travel, these passenger flows

adoption of tech to have less interaction

are expected to grow. And so will airport

between passengers and to provide a more

capacity,” said Dueñas.

direct travel experience. Infrastructure wise, investment in runways, platforms and pavements for the new generation of

“The COVID-19 pandemic drastically

aircraft are among the top priorities.

shifted freight traffic. E-commerce became a main source of product

Air cargo is another significant attractor

acquisition and this changed supply

of investment and cooperation between

chain”

airlin es a n d airp or t s . “ Th e COVI D -1 9

Jorge Gutiérrez de Velasco Director General | AIQ

pandemic drastically shifted freight traffic.

E-commerce became a main source of product acquisition and this changed supply chains,” said Gutiérrez. AIQ saw its best year

The increase in traffic is increasing pressure

for cargo in 2021 and this year, the airport

in the already oversaturated Mexico City

has been growing for five months in a row.

International Airport (AICM). This airport’s oversaturation was one of the main reasons

But growth and reconfiguration also implies

behind the construction of Mexico City’s new

securing fuel sources. The fuel provider of

airport: Felipe Ángeles International Airport

choice in Mexico is the Network of Airports

(AIFA). While new, the airport “is trying to

and Auxiliary Services (ASA Network),

work jointly with airlines through incentives

which is currently prioritizing five of the

that keep fares low and increase airport

large airports of its network. These include

accessibility,” said Coronel Alain Solana,

Puebla, where cargo in 2022 experienced

Operations Deputy General Manager, AIFA.

a 280 percent growth compared to the

To avoid traffic disruptions, AIFA aims to

same period last year. Puerto Escondido,

offer the right domestic connections that

Tepic, Colima and Ciudad del Carmen

reduce travel time and provide greater

a re also working to im prove aircraf t

security to operators.

processing capacity.

To a c h i eve t h e r i g h t o p e r a t i o n a n d

ASA is working with Grupo OMA, AIFA and

management, investment is fundamental.

AIQ to review their fuel systems. “With

“Grupo OMA, for example, is investing to

OMA, we are looking to extend the hydrant

decentralize traffic and make the airport in

network for a better volume capacity in

Monterrey a hub to avoid forced layovers

the airport in Monterrey. AIQ has grown

in the center of the country,” Dueñas said.

significantly so we have to improve its fuel storage capacity,” said Mauricio Arellano

The National Metrology Center (CENAM)

Villavicencio, Director of the Fuels Division,

has been implementing a metropolitan

ASA . The growth of these airports has

airspace modernization project that aims

driven ASA to acquire fuel supply vehicles

24

C onf e r e nc e H ighlights to align to airport requirements and the

Both airports and airlines have to align

operational reality of the country.

their needs and processes to respond corre c tly to cha nges in th e ind ustr y.

A common concern for all airports in the

“The big task we have as an industry is to

country is sustainability but newer airports

democratize flights. Mexico has one the

such as AIFA have an advantage as they

most sophisticated fleet of luxury buses

were built with clean energy in mind. “We

in the world , which has inhibited the

have solar farms and cogeneration plants

penetration of our services,” said Carlos

that reduce emissions,” said Coronel Solana.

C ampillo, Par tner, Alegre, C alderón &

AIQ is also investing in sustainability and aims

Márquez Abogados SC. However, “if the

to reduce its carbon footprint through solar

aviation industry continues to excel in

energy farms and wind energy. “The long-

p a s se n g e r exp e rie n ce a n d o p e ratio n

term vision of AIQ is to always coexist with

management, we could continue

the environment,” said Gutiérrez.

strengthening the aviation industry.”

OPPORTUNITIES IN AN ERA OF CARGO DISRUPTIONS T h e R u s si a - U k r a i n e co n fl i c t a n d th e

by 80 percent,” said Luis Ramos, CEO,

COVID-19 pandemic continue impacting

Aerocharter.

global air cargo, which is also tackling rising fuel prices, economic sanctions and

The cargo sector is still affected by the

no-flight zones. These trends affected

global context but the COVID-19 outbreak

numerous markets by increasing service

a ll owe d th e s e c to r to b e co m e m o re

costs and delaying deliveries at a time

relevant to the economy. To face the

when e-commerce skyrocketed, increasing

sanitary crisis, air freight became crucial

the need for faster deliveries . U nder

as it allowed countries to receive and send

these circumstances, companies have

medical supplies, forced many companies

been forced to adapt to give continuity

to get certified for the transportation of

to their operations and keep up with the

pharmaceutical products and turn their

growing demand.

passenger fleet into cargo aircraft. During the pandemic, “cargo transportation was

“We had never had a shipping crisis like

globally considered an essential activity

this one. Fuel prices are increasing as a

for the continuity of economic activities and

global pandemic shrank air freight capacity

most importantly for the lives of people,”

25

C onf e r e nc e H ighlights said Jorge L. Torres, Vice President, FedEx

given priority depending on their relevance

Express Mexico.

or urgency.

Airlines were not prepared for this crisis.

For air cargo to succeed in overcoming

“Supply chain disruption forced companies

these challenges, the public sector must

to reconfigure their cargo fleets, as travel

participate in the process and embrace

demand lagged,” said Luis Sierra, CEO,

digitization and automation. In Mexico,

MAS Air. Before the pandemic, MAS Air

cargo transportation can be delayed by the

was implementing a five-year strategic plan

overreliance on physical requirements and

but as COVID-19 hit, its operations were

permits, which could be digitized to the

destabilized and focused on maintaining

convenience of regulators and companies.

their operations. Fortunately, the brand

Moreover, the excessive use of paper hinders

is overcoming the obstacles posed by the

the industry’s sustainability efforts. For that

pandemic and is currently celebrating its

reason, the sector could benefit from the

30th anniversary, said Sierra.

implementation of the cargo processes used in the US and the EU. “Processes and other standards of operations need to be revised,

“Cargo transportation was globally

as many lead to time and monetary losses,”

considered an essential activity for

said Frank Nozinsky, Director, Sales and

the continuity of economic

Handling Mexico, Lufthansa Cargo.

activities and most importantly for the lives of people”

Jorge L. Torres

Vice President | FedEx Express Mexico

The e-commerce boom is putting further pressure in the cargo industry. “E-commerce is booming, accelerated by the pandemic.

This has made customers even more anxious to get their products in days, if not hours,

Although COVI D -1 9 heavily impac ted

so we are anticipating that the sector will

air cargo companies, opportunities also

become even faster,” said Nozinsky to MBN.

arose due to the lack of containers for maritime transportation. “The shortage

In Mexico, e-commerce grew by 81 percent

of shipping containers is an opportunity

during 2021 and plays an important role

for airlines to demonstrate the potential

in exports, which are a large part of the

of air freight, which is being increasingly

country’s GDP. As sales increase, the sector

recognized ,” said G uillaume M arsoin ,

needs streamlined processes and regulations

Director Mexico and Central America,

that facilitate the transportation of goods

Air France-KLM Martinair Cargo. This is

across borders. “Regulations must adapt and

linked to the fact that during the COVID-19

so that customer experience improves and

recovery phase there has been an increase

transparency is promoted,” added Ramos.

in rates, a change in the flow of goods, fewer operational vessels and congested

The air cargo sector is undergoing a

ports. Even though this situation benefits

transformation. “I am confident about

the industry because clients are looking

the future of airfreight, we have the right

for more transportation options, air freight

opportunity to be more sustainable, optimize

companies have to deal with the challenge

productivity, change and start thinking about

of prioritizing what products should be

the future,” said Marsoin.

MROS: KEY FOR SAFE, RELIABLE AEROSPACE MOBILITY MRO services are a crucial support for

the MRO services Mexico’s fleet requires,

flight operations, as both scheduled and

the country has a total of 305 aeronautical

unscheduled maintenance represent the

workshops that provide suppor t and

highest impact cost in aviation. To supply

maintenance services to both fixed wing

26

C onf e r e nc e H ighlights and rotary wing aircraft. The MRO services

their services’ supply with the productivity

helicopters require are highly different from

and profitability of the flight operations

those of airplanes and present significant

of different aircraft. To extend the value of

oppor tunities within the aerospace

aircraft assets, pertinent maintenance is a

value chain.

key element. “Maintenance is geared towards maintaining the value of the helicopter not

“A power unit with flight capabilities must

only for its operation, but also to preserve its

always operate under the safest conditions

value as an asset,” Vega noted.

marked by the manufacturer’s guidelines,” said Jorge Vega, Commercial Manager,

HeliOffshore data reports that, between

ASESA MRO.

January 2013 and December 2019, a total of 65 aircraft accidents were recorded.

Out of the 305 MRO workshops in Mexico,

Preventing these accidents is only possible

202 focus on airplanes and the remaining

through the regular and reliable maintenance

103 specialize on helicopters, although most

of aircraft. “MROs are committed that,

workshops service the commercial aviation

through safe operations, compliance with

sector. Mexico has a 7,040-aircraft fleet,

procedures, incorporation of management

considering commercial aircraft, business

tools for planning, execution and supply chain,

and government aircraft. Of that fleet, 703

we generate the right conditions to provide

aircraft are helicopters of eight brands:

the highest quality maintenance possible,”

Agusta, Airbus, Bell Textron, Enstrom, MD,

said Vega.

Robinson, Schweizer and Sikorsky. About 62 percent of the fleet is composed of Bell

ASESA MRO has consolidated its leadership

Textron helicopters, followed by Airbus with

by providing maintenance services that

18 percent and Agusta with 10 percent.

promote safety and reliability for the industry. In 2021, ASESA MRO covered

Generally, the maintenance provided falls

4,963 maintenance service orders. ASESA

into three distinct categories. The first is

MRO is strategically distributed throughout

preventive maintenance, which is performed

the country thanks to its three workshops

following a set amount of flight hours, aircraft

located in Mexico City, Monterrey and Ciudad

cycles or warm-ups. The second is corrective

del Carmen. The latter is the company’s

maintenance, which is given to fix a failure

main base, where it assists the largest

reported during the pre-flight, flight or post-

concentration of helicopters for oil and gas

flight stages. Finally, there is the major repair

operations. With 16,000m2 of hangars in

of components, which occurs when more in-

its three workshops, ASESA MRO has the

depth maintenance of the aircraft is required

capacity to service 30 helicopters on the

after a predetermined number of flight-cycles.

shop floor simultaneously. In addition, the company has a Mobile Repair Team (MRT),

All aircraft in general must operate safely

which is a high-performance work unit that

and efficiently. However, safety and reliability

can go on site to attend failures outside

must be also balanced with maintenance

the helicopter base. These capabilities set

costs to remain competitive and economically

ASESA MRO aside from competitors when

viable. For this reason, MROs must align

assisting helicopters’ maintenance.

AIRBUS TAKES THE NEXT STEP IN SUSTAINABILITY Hydrogen-powered flights are a long-time

become the world’s first zero-emission

goal of the aerospace industry that could

commercial aircraft by 2035.

become a reality thanks to Airbus’s three ZEROe. The ZEROe concept aircraft are

Hydrogen’s energy-per-unit mass is three

powered by hydrogen combustion through

times higher than that of traditional jet

modified gas turbine engines and aim to

fuel. If generated from renewable energy

27

C onf e r e nc e H ighlights through electrolysis, hydrogen emits no CO2

A i r b u s ’s g o a l is to o p e rate with 1 0 0

emissions, generating renewable energy to

percent sustainable aviation fuel (SAF)

potentially power large aircraft over long

before 2030 and to be the first major

distances without undesirable emissions.

manufacturer to offer a climate neutral

All three ZEROe concepts are hybrid-

aims to reach zero-emission aviation by

hydrogen aircraft powered by hydrogen

2050. The ZEROe is the materialization of

combustion . In addition , hydrogen

these efforts.

commercial aircraft by 2035. The OEM

fuel cells create electrical power that complements the gas turbine, resulting in a

The first of these three aircraft is a turbofan

highly efficient hybrid-electric propulsion

designed for 120-200 passengers with a

system . All of these technologies

range of over 2,000 nautical miles, capable

a re co m p l e m e nt a r y a n d th e b e n e fit s

of o p e rating tra ns- co ntin e nta lly a n d

are additive.

powered by a modified gas-turbine engine running on hydrogen, rather than jet fuel. In

I n 202 2 , Airb us la un ch e d th e ZERO e

this case, the liquid hydrogen will be stored

demonstrator to test hydrogen

and distributed via tanks located behind the

co m b u s ti o n te c h n o l o g y o n a n A 3 8 0

rear pressure bulkhead.

multimodal platform. Through ground and flight testing, Airbus “expects to achieve

The second eZERO aircraft is a turboprop

a mature technology readiness level for a

for up to 100 passengers, which uses a

hydrogen-combustion propulsion system

turboprop engine instead of a turbofan. This

by 2025,” said Damien Sternchuss, Vice

aircraft is powered by hydrogen combustion

President and Head of Airline Marketing for

in modified gas-turbine engines. The aircraft

Latin America and the Caribbean, Airbus.

would be capable of traveling over 1,000 nautical miles, making it a perfect option

Airbus aims to become a pioneer for

for short-haul trips.

sustainable aviation. While aviation only generates 2.5 percent of the global CO2

The last one is a “blended-wing body”

emissions, the OEM is committed to reduce

design for up to 200 passengers. In this

these emissions, said Sternchuss. Some

model the wings merge with the main

of Airbus’s first attempts included jet-age

body of the aircraft. The exceptionally

aircraft that reduced CO2 emissions by

wide fuselage opens up multiple options

80 percent. “These also reduced noise by

for hydrogen storage and distribution and

75 percent, which is very important when

for cabin layout. This model would have a

operating in urban areas,” said Sternchuss.

similar range than the turbofan.

28

C onf e r e nc e H ighlights To seamlessly operate these aircraf t,

journey was possible through the support

collaboration with airports is fundamental,

of different companies that share their

said Sternchuss. Airports transport heavy

same sustainability values, such as the

goods including machinery, buses, trucks

Aviation Center in Germany, Canada and the

and aircraft, but they could also become

University of Manchester, he added.

hydrogen hubs in preparation for zero emission aviation.

A i r b u s a l s o i n t r o d u c e d t h e F e l l o ’ fl y concept, which performs wake energy

As part of its sustainability efforts, Airbus

retrieval similar to migrating birds flying in

had previously introduced its 100 percent

the “V” patterns. “Airbus is fully engaged

SAF aircraft family. “These operated with

in driving the sector to carbon neutral

25 percent less fuel and generated less CO2

aviation , leading the change through

versus previous aircraft generations,” said

th e aviatio n in d us tr y ro a d m a p,” s aid

Sternchuss. This sustainable aviation fuel

Sternchuss.

HALCÓN 2: THE FIRST MADE-IN-MEXICO-AIRPLANE IN 70 YEARS After 70 years of not having an aircraft

challenging to find trusted suppliers because

designed and produced in Mexico,

they did not have our knowhow nor met our

Horizontec came to shift the country’s

expectations. This forced Horizontec to build

aeronautical histor y in 2014 . The

these capabilities,” said Humberto Montaño

company has launched the Halcón 1 and

Valdez, Operations Manager and Design

is developing the Halcón 2, which will

Area, Horizontec.

become its first commercial produc t.

Innovative technologies and composite

The implementation of composite materials

materials are some of the characteristics

has not been easy. Although the use of carbon

that make these aircraft unique. They also

fiber makes aircraft lighter, few companies

showcase the engineering capabilities

use it so the calculations to use it had to be

of Mexican talent, while offering a light

developed by Horizontec’s engineers. This

sports-quality aircraft.

process require the development of a new software. “Horizontec has developed an engineering platform with the capacity to

“Halcón’s project model is an ideal

design and test structural and aerodynamic

asset for the more than 150 aviation

models for the accelerated construction of

schools working to train tomorrow’s

new prototypes,” said Giovanni Angelucci,

talent, given its safety measures for

CEO, Horizontec.

both the pilots and the prototype”

Giovanni Angelucci CEO | Horizontec

Moreover, supplies were hard to find. At the beginning, the company struggled with finding suppliers of quality materials, leading the company to develop alternatives and bet

“The Halcón 2 aims to address the needs of

on the diversification of its supplier base and

Mexican aviation by offering competitive

look for alternatives of common materials.

advantages such as efficiency, low flight-

Horizontec also faced a gap between design

hour costs, ergonomics and safety during

and manufacturing that had to be reduced

flight. Besides, it is composed of quality

through efficient communication. It also

materials and well-designed,” said Diego

struggled to find qualified professionals.

Sinhue, Governor of Guanajuato, during the inauguration of Horizontec’s new plant.

D e s p i te t h e c h a l l e n g e s , H o r i zo n te c succeeded in developing and certifying

Being a pioneer in the sector brough

the Halcón 1 and is in line to certify the

Horizontec several challenges. “It has been

H a lcó n 2 . H o rizo nte c h as a llie d with

29

C onf e r e nc e H ighlights CONACyt to make this process a reality.

turboprops and gas turbines. The company

The certifications involve the evaluation

is also supporting Bajio’s cluster goals.

of the airplane’s design, production and

G ua n ajuato h as a stro ng a uto m otive

maintenance, among other characteristics.

industry supported by certified companies

However, Mexican regulations have gaps

with highly qualified human capital and well-

that make the certification process harder.

established processes. Through companies

For example, regulations force companies

like Horizontec and the work of clusters, the

to show an import certification, which

state’s aerospace industry can also position

Horizontec cannot fulfill because it uses

itself in global supply chains.

local supplies. “Certifying Horizontec’s Halcón 1 and 2 may have been a tedious

“Our goal as a cluster is to help those

process, but their design, production and

companies transition and begin

bilateral certifications provides international

manufacturing for the aerospace sector.

legitimacy for immediate export,” said

Guanajuato’s companies are highly focused

Edgar Martínez Ortega, Project Manager

on developing technology. The cluster has

and Certification Area, Horizontec.

been expanding its use of technology and embracing trends, such as machine learning,

The production and certification of the

AI and big data, which has allowed us to

Halcón 2 is only the beginning of Horizontec’s

identify unexplored market niches,” said

future plans. By the end of 2022, the brand

Óscar Rodríguez, President Bajio Aerospace

expects to have produced about 50 aircraft

Cluster (BJXAerospace) to MBN.

and between 15 and 20 units during 2023.

“Through the production of an efficient and

After 70 years of not having an aircraft

cost-effective asset, we aim to democratize

designed and produced in Mexico,

aviation,” said Angelucci.

Horizontec came to shift the country’s aeronautical history in 2014. The company

Horizontec aims to partner with aviation

has launched the Halcón 1 and is developing

schools because its safety elements, such as

th e H a l có n 2 , wh ich will b e co m e it s

the incorporated parachutes, could help to

fi r s t co m m e rcia l p ro d u c t . I n n ovative

train future pilots. “Halcón’s project model is

technologies and composite materials are

an ideal asset for the more than 150 aviation

some of the characteristics that make these

schools working to train tomorrow’s talent,

aircraft unique. They also showcase the

given its safety measures for both the pilots

engineering capabilities of Mexican talent,

and the prototype,” said Angelucci.

while offering a light sports-quality aircraft.

H o rizo nte c is b o os ti n g G u a n a j u ato’s

“The Halcón 2 aims to address the needs

aerospace industry, which in 2020 exported

of Mexican aviation by offering competitive

US$5.8 million in aero parts, turbojets,

advantages such as efficiency, low flight-

30

C onf e r e nc e H ighlights hour costs, ergonomics and safety during

D e s p i te t h e c h a l l e n g e s , H o r i zo n te c

flight. Besides, it is composed of quality

succeeded in developing and certifying the

materials and well-designed,” said Diego

Halcón 1 and is in line to certify the Halcón

Sinhue, Governor of Guanajuato, during the

2. Horizontec has allied with CONACyt to

inauguration of Horizontec’s new plant.

make this process a reality. The certifications involve the evaluation of the airplane’s design,

Being a pioneer in the sector brough

production and maintenance, among other

Horizontec several challenges. “ It has

characteristics. However, Mexican regulations

been challenging to find trusted suppliers

have gaps that make the certification process

because they did not have our knowhow

harder. For example, regulations force

nor met our expectations. This forced

companies to show an import certification,

Horizontec to build these capabilities,” said

which Horizontec cannot fulfill because it

Humberto Montaño Valdez, Operations

uses local supplies. “Certifying Horizontec’s

Manager and Design Area, Horizontec.

Halcón 1 and 2 may have been a tedious process, but their design, production and

The implementation of composite

bilateral certifications provides international

materials has not been easy. Although

legitimacy for immediate export,” said Edgar

the use of carbon fiber makes aircraf t

Martínez Ortega, Project Manager and

lig hte r, few co m p a n i e s u se it so th e

Certification Area, Horizontec.

calculations to use it had to be developed

by Horizontec’s engineers. This process

The production and certification of the

require the development of a new software.

Halcón 2 is only the beginning of Horizontec’s

“Horizontec has developed an engineering

future plans. By the end of 2022, the brand

platform with the capacity to design and

expects to have produced about 50 aircraft

test structural and aerodynamic models

and between 15 and 20 units during 2023.

for the accelerated construction of new

“Through the production of an efficient and

prototypes,” said Giovanni Angelucci, CEO,

cost-effective asset, we aim to democratize

Horizontec.

aviation,” said Angelucci.

Moreover, supplies were hard to find. At

Horizontec aims to partner with aviation

the beginning, the company struggled

schools because its safety elements, such as

with finding suppliers of quality materials,

the incorporated parachutes, could help to

leading the company to develop

train future pilots. “Halcón’s project model is

alternatives and bet on the diversification

an ideal asset for the more than 150 aviation

of its supplier base and look for alternatives

schools working to train tomorrow’s talent,

of common materials. Horizontec also faced

given its safety measures for both the pilots

a gap between design and manufacturing

and the prototype,” said Angelucci.

that had to be reduced through efficient communication. It also struggled to find

H o r izo nte c i s b o o s ti n g G u a n a j u ato ’s

qualified professionals.

a e r o s p a c e i n d u s t r y, w h i c h i n 2 0 2 0

31

C onf e r e nc e H ighlights exported US$5. 8 million in aero parts,

“Our goal as a cluster is to help those

turbojets, turboprops and gas turbines.

companies transition and begin

The company is also supporting Bajio’s

manufacturing for the aerospace sector.

cluster goals. Guanajuato has a strong

Guanajuato’s companies are highly focused

automotive industry supported by certified

on developing technology. The cluster has

companies with highly qualified human

been expanding its use of technology

capital and well-established processes.

and embracing trends, such as machine

Through companies like Horizontec and

learning, AI and big data, which has allowed

the work of clusters, the state’s aerospace

us to identify unexplored market niches,”

industry can also position itself in global

said Óscar Rodríguez, President Bajio

supply chains.

Aerospace Cluster (BJXAerospace) to MBN.

ADVANCED AIR MOBILITY: THE NEW FRONTIER IN DISRUPTIVE INNOVATION The high concentration of people and

succeeds, huge changes happen in a short

vehicles in urban centers has led to high

time,” said Antonio Campello, Founder,

levels of pollution, while trapping many

Innova 2 Elevate.

people in traffic for long periods. These trends have led to a decrease in life quality

While A AM is still not a reality, many

but both traffic and pollution could be

companies are making great strides to

reduced through the introduction of a

make this technology possible and introduce

disruptive innovation that can optimize

environmentally friendly vehicles to cities.

traffic in cities: Advanced Air Mobility (AAM).

Developers are investing in electric vertical take-off and landing (eVTOL), electric

AAM, referring to the concept of using

conventional takeoff and landing (eCTOL)

vertical takeoff and landing vehicles in

and electric short take-off and landing

urban areas, has the potential to drastically

(eSTOL) technologies, all of which produce

change the way people travel and the way

no CO2 emissions. Through new technologies

people live in the cities and its surroundings.

and business models, the goal to achieve eco

Nowadays, AAM is one of the disruptive

air transportation for short and mid-range

and eco-friendly innovations that can drive

distances, at an accessible price, is becoming

social transformation. But for innovation

more viable. Optimally, the ticket’s price of

to be truly disruptive its benefits must

air mobility should be as low as possible

be available for a large percentage of the

to allow millions of people within a city or

population. “When a disruptive innovation

country-side to fly free of traffic.

32

C onf e r e nc e H ighlights

To make air mobility possible, new business

A AM will also create new business

models that will assure affordable ticket

opportunities that will ignite economic

pricing should be pursued. These business

g row t h . A i rc r a f t m a n u f a c t u r i n g a n d

models should consider an initial fare of

its related value chain are some of the

US$5 per mile per person and throughout

new areas of opportunity where Mexico

time lower the fare to US$2 per mile per

c a n s h ow a c o m p e t i t i ve a d v a n t a g e ,

person, said Campello. These fares will

explained Campello. Cities must prepare

allow air mobility to compete with ground

and business readapt to capture the new

transportation.

opportunities brought about by this trend.

To provide faster air transportation of both

Before entering the mainstream, AAM will

passengers and cargo, a new ecosystem

have to overcome several obstacles. Chief

must be created. Hubs for multimodal

among these challenges is energy storage,

transpor tation will be fundamental to

which still has to mature to allow these

develop air mobility. Existing installations

aircraft to be fueled by electricity during

like shopping malls can be adapted to

the time it takes the vehicle to complete its

host multimodal transpor tation hubs ,

route. Moreover, AAM certification is still in

as the added flexibility will encourage

its early stages and clear quality standards

businesses.

for product, manufacturing and operation must be defined and agreed upon.

Disruptive innovation will demand new regulations. Authorities in Mexico

Direct operating costs will be the key driver

and abroad are closely following the

of the adoption of AAM. When operating

potential of air mobility. Everything that

costs drop, further implementation of

flies should be under the supervision of

AAM solutions will become more attractive

the aeronautical authorities to provide

and economically viable. However, public

a s a fe a n d e ffi c i e nt e nvi ro n m e nt fo r

acceptance and adaptation will define the

future air mobility and transportation,

success of AAM. Adapting to disruptive

explained Campello.

innovation might cause resistance. The speed at which societies incorporate AAMs

The AAM boom is approaching. Morgan

into their daily lives will mark the degree of

Stanley estimates this market will be valued

success of this disruptive innovation.

at US$1 trillion by 2040. When excess liquidity merges with disruptive innovation,

“A disruptive innovation process with a

it allows for startup businesses to develop

cultural change that includes social and

faster, accelerating technological maturity.

environmental benefits will transform

In the case of AAM, the ride ticket price

social interac tions and guide societ y

will be the breakthrough that will show

toward sustainability and wellbeing. That

the maturity of this technology, potentially

is the potential AAM has to revolutionize

allowing the market to take off.

our transport dynamics,” said Campello.

33

Conference Highlights THE BOOMING AEROSPACE INDUSTRY NEEDS A STRONGER WORKFORCE Attracting and retaining talent in the

exploration, said Landeros. “Missions to the

a e ros p a ce i n d u s tr y h a s a lways b e e n

moon and mars are far too advanced for

challenging but it has proved especially

Mexico not to have prepared professionals

difficult over the past few years due to the

to join,” he added. “This would also require

rise of high-tech companies in other fields.

professionals trained on space medicine,

The shortage has put many companies

chemistry and biology to identify ancient

in a fierce competition for the best and

organic compounds on Mars.”

the brightest. As a result, the industry is looking for professionals with a new

Beyond training a new aerospace workforce,

skillset that includes management of

the industry is also reincorporating the

communication abilities.

displaced employees who lost their jobs as a result of the economic crisis caused by the COVID-19 pandemic. In the past six months,

“We are receiving colleagues that share

the industry has reintegrated 5,000 workers

our values of creativity, respect and

that were let go during that period. “As we

innovation. As such, we provide our

hire more people, we are noticing that a lot

current workers with the skills for

of people come from other states of the

novel technologies and novel

country, specially from the northern region

consumption behavior”

Ana Molina Human Resources Senior Manager | Airbus

of Mexico,” said Pérez.

The need for professionals in this industry makes integration and reintegration easy, said Pérez. He added that recruiters are

“After the pandemic, we are looking for quick,

looking for experience and skills. Thus,

adaptable and flexible professionals that

“competent professionals will for sure have

know how to balance technical and personal

a place at Safran.”

skills such as teamwork, empathy and skills on personal communication,” said Efrain

While the space industry is growing rapidly,

Pérez, Talent Acquisition and Compensation

it “did not have displaced workers; we are

Manager, Safran.

currently hiring and investment in this sector is growing, meaning that we need more

The aerospace and space sectors are

people for the incoming projects that this

increasingly looking for professionals to work

investment will generate,” said Landeros.

in satellites, communication, aviation and air observation, among other areas. This means

French planemaker Airbus reports a similar

seeking workers with diverse backgrounds

situation: “We are growing and facing a ramp

that can leverage new technologies like

up,” said Ana Molina, Human Resources

additive manufacturing, robotics, modeling

Senior Manager, Airbus Helicopters México

and simulation. These workers must also

Querétaro. “We are receiving colleagues

be capable of using the latest virtual tools

that share our values of creativity, respect

to help accelerate production to meet the

and innovation. As such, we provide our

demand. For example, the Mexican Space

current workers with the skills for novel

Agency (AEM) needs experts in the analysis

technologies and novel consumption

and processing of satellite images, remote

behavior.”

sensing and air observation, said General Director Salvador Landeros Ayala.

The aerospace industry is highly dynamic, said Pérez, so workers have the opportunity

There is an urgent need to educate and

to move and grow quickly. Thus, each

train professionals in space and space

company needs to ensure it offers the

34

C onf e r e nc e H ighlights best conditions to their employees. “As a

have programs for telecommunications,

company, we need to be more conscious

computer science and mechanics, among

about our talent and offer personalized

other technical careers, he added.

b e n e fi t s t h a t a r e a t t r a c t i ve to n e w generations with things such as home office,

“We are currently experiencing a period of

insurance and attractive mobility options

opportunity to innovate and recreate the

so employees can work internationally to

good practices we have been working with

expand their knowledge,” said Pérez.

to reach more professionals,” said Molina.

“Thus, if we teach them the right skills, these

Beyond on the job training, the industry

professionals will come to our companies as

needs to rely on academia. “We need more

long as we have the right offer to respond

undergraduate and graduate programs

to their talent.”

at universities. We currently have very few programs for the space industry and

Mexican talent is recognized around the

we are going to need many experts in the

world for its quality, said Enrique Sosa,

coming years so we need to start enhancing

Dean, UNAQ. “There are many Mexican

education, not just in aerospace but in

experts in aerospace and aeronautics but

space careers,” said Landeros. This should

there is indeed an urgency to retain them

not be difficult as universities already

in the country.”

MEXICO’S AEROSPACE INDUSTRY IS BOUNCING BACK Before 2020, Mexico’s aerospace industry

Mexico was the 12th largest aerospace

was growing at an accelerate d pace.

exporting country.

B ut th e COVI D -1 9 pa n d e mic bro ught a decrease in expor ts and drastically

The industry kept growing at an accelerated

reduced travel, greatly slowing down

pace before the COVID -19 pandemic .

aircraft production. As the Russia-Ukraine

I n 2 0 1 9 , M ex i c o h a d 3 6 8 a e ro s p a c e

war and COVID-19 variants keep delaying

b usin ess unit s . O f th ose , 8 6 p e rce nt

the sector ’s recover y, the rebound of

were manufacturing plants, followed by

the aerospace sector hinges on growth

Maintenance Repair Overhaul (MRO) units

oppor tunities such as the forec asted

with 12 percent and design and engineering

demand of narrow-body aircraft and the

plants with 11 percent. Most of those plants

upcoming space sector.

were concentrated in the north of the country, with Baja California reporting the

“Between 2014 and 2019, the aerospace industry was considered a new sector with exceptional growth mainly in commercial aeronautics”

largest number of aerospace facilities. The industry was responsible for over 60,000 direct jobs in 19 states.

That year, aviation exports amounted to

Luis Gerardo Lizcano

US$9.68 billion, making Mexico the sixth

President | FEMIA

largest exporter of aerospace parts to the US. “Overall, 2019 was a successful year for the industry in Mexico,” said Lizcano.

“Between 2014 and 2019, the aerospace industry was considered a new sector with

However, the aviation industry received

exceptional growth mainly in commercial

a blow in 2019 with the grounding of

aeronautics,” said Luis Lizcano, General

the Boeing 737 Max, but its production

D i re c to r, M exi c a n Fe d e r ati o n of th e

continued until early 2020. Once production

Aerospace Industry (FEMIA). During that

of the 737 Max stopped, Boeing’s shares

period, the industry reported a positive

dropped by 3.3 percent. During that period,

trade balance of 18 percent and by 2016,

COVID-19 cases were quickly rising and

35

C onf e r e nc e H ighlights starting to seriously impact the global

Boosting the recovery of the industry is

economy. Both the grounding of the 737

the fact that people are traveling again,

Max and the COVID-19 pandemic greatly

which will increase demand for narrow-

affected the aerospace industry, with OEMs

body aircraft. Demand for air cargo also

dramatically reducing production of new

increased following the e-commerce boom,

aircraft and global air passenger traffic

which forced airlines to transform their

decreasing to levels not seen in decades.

fleet according to the needs of the market.

G l o b a lly, co m m e rci a l a i rc raf t o rd e r s

T h e g l o b a l i n d u s t r y m a r ke t o u tl o o k

decreased by 59 percent in 2020. In

suggests that in the future there will be

April 2020, Mexico’s aerospace exports

an emphasis on fleet versatility. The cargo

dramatically decreased. Compared with

sector is still affected by the global context

2019, exports contracted by 31.8 percent.

but the COVID-19 outbreak allowed the sector to become more relevant to the

Fortunately, Mexico’s aerospace industry

economy. During the COVID-19 outbreak,

started to bounce back in 2021 as exports

“cargo transpor tation was globally

increased by 6 percent. However, the

considered an essential activity for the

sector has not recovered its pre-pandemic

continuity of economic activities and most

numbers. By late 2022, experts hope for

importantly for the lives of people,” said

an increase of 16 percent in exports but

Jorge L. Torres, Vice President, FedEx

forecast that they will not surpass 2019’s

Express Mexico.

levels until 2024, explained Lizcano.

Although the sec tor is recovering , The industr y keeps facing several

companies must focus on building more

challenges delaying its growth. “Although

resilient supply chains that can handle

the COVID-19 recovery phase is underway,

future shocks. Supply chains must be

the outbreak of SARS- CoV-2 variants

prepared to endure highly disruptive

continues to destabilize the market. By early

events and quickly recover. Mexico also has

2022, the industry expected more vigorous

the opportunity to restructure its supply

growth but the Omicron variant delayed

chains by diversifying them to become

this process,” said Lizcano. Moreover, the

less dependent on single sources. Other

Ukraine-Russia conflict caused a disruption

opportunities are also arising. “Space is

in logistics and hindered the supply of

becoming a trend and Mexico should start

titanium, which is produced in the region.

exploiting this opportunity,” said Lizcano.

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