GAP Expansion, Viva's MRO Investment: Aerospace Week

In this week's aerospace news, Mexico’s GAP progresses on its MX$52 billion expansion, lifting shares by 9.34%. The US steps up surveillance near Mexico, focusing on cartel activity. Viva Aerobus invests MX$4 billion in a major MRO facility in Querétaro. Meanwhile, Mexicana expands routes, and IMSS faces scrutiny over a controversial air ambulance contract. Boeing, Honeywell, and Rolls-Royce announce significant industry updates.

Get ready for takeoff—this is the Week in Aerospace!

GAP Moves Forward with MX$52 Billion Expansion, Shares Jump 9.34%

Grupo Aeroportuario del Pacífico (GAP) is advancing with its ambitious MX$52 billion (US$2.5 billion) expansion plan, securing financing through debt issuance and bank loans. The company’s shares have surged 9.34% in the last 40 days, reflecting investor confidence in its long-term strategy.

US Expands Surveillance Near Mexico, Targets Cartel Activity

The US military has significantly increased surveillance operations along the US-Mexico border, deploying advanced reconnaissance aircraft for intelligence-gathering missions. Reports indicate that at least 18 such flights occurred between late January and early February, focusing on cartel activities. These missions included flights over US airspace and international waters near Baja California.

Oregon Guard Tests Drones for Battlefield Medical Deliveries

Combat medics from the Oregon National Guard recently participated in an innovative training exercise at Camp Rilea, utilizing drone technology to deliver medical supplies in large-scale combat environments. This initiative seeks to address new challenges in battlefield medicine, especially when traditional medical evacuation methods may not be feasible.

Mexicana de Aviación Targets Stability by 2030, Expands Routes

Mexicana de Aviación continues to execute its strategy to establish itself as a financially sustainable airline while expanding its connectivity offerings. The airline recently resumed operations on the Felipe Ángeles International Airport (AIFA)-Campeche route, which had been suspended on Jan. 6 due to operational adjustments.

Boeing Faces 400 Layoffs in SLS Program Amid NASA Artemis Delays

Boeing has announced potential layoffs impacting approximately 400 employees in its Space Launch System (SLS) moon rocket program. The decision reflects revisions to NASA's Artemis program and cost expectations. Boeing will issue 60-day layoff notices in the coming weeks while working to reassign affected employees within the company. 

IATA Raises Concerns Over Slow SAF Production in Aviation

The International Air Transport Association (IATA) has expressed concerns about the slow progress in the production of Sustainable Aviation Fuel (SAF), a key element in the aviation industry's goal of achieving carbon-neutral growth. According to IATA, only 0.3% of global aviation fuel is sustainable, while 11% is renewable.

Honeywell Plans Split into Three Firms Due to Investor Pressure

Honeywell has announced plans to split into three independent companies, separating its aerospace, automation, and advanced materials businesses. This decision comes in response to mounting pressure from activist investor Elliott Investment Management, which acquired a US$5 billion stake in the company in late 2024. The split is expected to be finalized by the second half of 2026, with the advanced materials spinoff scheduled for completion by early 2025.

Rolls-Royce Converts Tornado Parts to 3D Printing Powders

Rolls-Royce has successfully showcased Tornado 2 Tempest, an innovative recycling initiative that converts decommissioned Royal Air Force (RAF) Tornado components into metal powders for 3D printing. These powders have been used to produce parts for the Orpheus small engine concept, a key element of the Future Combat Air System (FCAS) program. This initiative demonstrates the potential of recycling surplus defense materials into advanced components for next-generation aircraft.

IMSS Awards Med Jets MX$120 Million Contract Amid Safety Concerns

The Mexican Social Security Institute (IMSS) awarded a MX$120 million  contract (US$5.8 million) in June 2024 to Med Jets, a company operating under the Jet Rescue brand, for air ambulance services. The decision has raised concerns due to the company’s history of fatal accidents and internal reports of aircraft failures.

Viva’s MX$4 Billion MRO Facility in Queretaro to Add 3,000 Jobs

Viva has announced a MX$4 billion (US$235 million) investment for the construction of a Maintenance, Repair, and Overhaul (MRO) facility at the Queretaro International Airport. The new facility will enable the airline to service and repair its fleet, creating 2,000 direct jobs and nearly 1,000 indirect specialized positions.