Exel Composites and French-Canadian aeronautical company FLYING WHALES have officially opened a purpose-equipped production line in Joensuu, Finland, to manufacture carbon fiber tubes for the LCA60T heavy-lift airship. The inauguration on September 30, 2026, marks the beginning of the process validation phase for the aircraft’s structural components.

In a press release issued to mark the milestone, Exel Composites confirmed that the new facility will produce the continuous pull-wound carbon fiber tubes that form the rigid skeleton of the airship. The process validation phase is a critical aerospace manufacturing step designed to demonstrate that the pull-winding process can meet the strict repeatability and environmental controls required for the structural frame.

Transitioning to process validation

The shift into process validation requires Exel Composites to prove the consistency and quality of its manufacturing techniques before full-scale serial production begins. The validation phase will test the facility’s ability to maintain precise environmental controls, including strict parameters for temperature, humidity, and air cleanliness, which are mandatory for aerospace-grade composite manufacturing.

The scale of the manufacturing effort is substantial. The LCA60T, which stands for Large Capacity Airship 60 Tons, measures 200 meters in length. Its rigid frame relies entirely on the lightweight, high-strength carbon fiber tubes produced at the Joensuu factory.

The September 30, 2026, announcement also provided an updated figure for the material required to build the aircraft. Exel Composites stated that a single LCA60T frame will require approximately 80 kilometers of pull-wound carbon fiber tubes. This represents an increase from earlier financial releases issued by the company in 2024 and 2025, which estimated the requirement at 75 kilometers per airship.

Developing the heavy-lift logistics market

Founded in 2012, FLYING WHALES is developing the LCA60T to address logistical bottlenecks in remote and landlocked areas. The aircraft is designed as a vertical take-off and landing (VTOL) hybrid helium-electric airship. Its primary operational advantage is the ability to load and unload up to 60 tons of cargo while hovering, functioning similarly to a floating crane. This capability eliminates the need for traditional ground infrastructure, such as runways or reinforced landing pads.

The target market for the LCA60T includes industries that require the transport of oversized or heavy equipment to inaccessible locations. Projected use cases involve moving wind turbine blades, extracting timber, and delivering power pylons to remote construction sites.

The environmental profile of the airship is a central component of its market positioning. Dassault Systèmes, a corporate partner on the program, projects that the LCA60T’s distributed electric propulsion system will reduce emissions by approximately 70 percent compared to traditional cargo planes and heavy-lift Helicopters. Future iterations of the airship are targeting up to a 90 percent reduction in emissions.

From prototyping to commercial operations

The opening of the Joensuu production line follows several years of collaboration between the two companies. Exel Composites and FLYING WHALES initially announced a research and development partnership in 2024 to focus on the prototyping of the composite tubes. This R&D phase culminated in February 2025, when Exel Composites signed a formal contract with FLYING WHALES for the delivery of the pull-wound components.

Commercial interest in the platform has continued to develop alongside the manufacturing milestones. According to reporting by Breakbulk Americas, FOX Brasil signed a memorandum of understanding (MoU) with FLYING WHALES on July 24, 2026. The agreement explores the deployment of the LCA60T Cargo aircraft in Brazil to support heavy-lift logistics in the mining, power, and renewable energy sectors.

With the process validation phase now underway, the program is moving toward its next major operational milestones. FLYING WHALES anticipates the first flight of the LCA60T prototype will take place in 2027. If the flight test and certification campaigns proceed on schedule, the company expects to begin commercial operations in 2029.

AirPro News analysis

The transition to process validation is a major de-risking event for the LCA60T program. Rigid airships have historically struggled to bridge the gap between conceptual design and serial manufacturing, often faltering when bespoke prototyping must be scaled into repeatable industrial production. By establishing a dedicated line capable of maintaining aerospace-grade environmental controls, Exel Composites and FLYING WHALES are addressing this historical bottleneck directly.

The upward revision in the required tube length from 75 kilometers to 80 kilometers per frame highlights the iterative reality of aerospace structural engineering. As the design matures toward its final certifiable configuration, structural reinforcements and design tweaks inevitably alter material requirements. For Exel Composites, proving the continuous pull-winding process at this unprecedented scale is as much a test of industrial logistics as it is of composite engineering. If the validation phase is successful, it will cement a novel supply chain model for the next generation of heavy-lift airships.

Malaysia Aviation Group (MAG) has signed a Sale and Purchase Agreement to acquire Sepang Aircraft Engineering (SAE) from Airbus, expanding its in-house maintenance, repair, and overhaul capabilities to capture growing third-party demand in the Asia-Pacific region.

Announced in an October 1, 2026, press release, the transaction transfers full ownership of the Kuala Lumpur-based facility to the parent company of Malaysia Airlines. The acquisition adds dedicated Airbus A320-family expertise, specialized component repair services, and a closed-door paint hangar to MAG’s existing engineering portfolio, supporting the group’s Long-Term Business Plan 3.0 (LTBP 3.0) revenue diversification strategy.

Strategic expansion of MAB Engineering

The integration of SAE will directly complement the capabilities of MAB Engineering, the in-house maintenance arm of MAG. SAE operates as an independent aircraft maintenance, repair, and overhaul (MRO) center approved by the European Union Aviation Safety Agency (EASA). The facility features two hangars with a combined floor area of 50,000 square meters, capable of accommodating up to eight commercial aircraft simultaneously for major maintenance checks.

Beyond heavy maintenance, the SAE facility houses Malaysia’s first eco-friendly closed-door dedicated paint bay. This infrastructure allows MAG to internalize aircraft painting requirements while offering the service to third-party operators across the Association of Southeast Asian Nations (ASEAN) market.

Captain Nasaruddin A. Bakar, President and Group Chief Executive Officer of MAG, framed the acquisition as a disciplined capital deployment amid a challenging global environment. He noted that volatile fuel prices and an uncertain operating environment have put immense pressure on the aviation sector, prompting strategic moves to control costs and secure additional revenue streams.

“Against this backdrop, as we execute LTBP 3.0, we remain focused on making disciplined investments in areas where we see a clear pathway to sustainable value creation,” Bakar said. “This means being deliberate about where we deploy capital and prioritising opportunities that strengthen our core businesses, diversify revenue and support the Group’s long-term growth aspirations.”

“SAE further complements MAB Engineering’s existing capabilities through its A320 expertise, dedicated paint hangar and specialised component repair services, while building on the strong technical, operational and quality foundations developed under Airbus’ stewardship,” Bakar added.

The evolution of Sepang Aircraft Engineering

Founded in 2007, SAE has operated as a key MRO provider in Southeast Asia for nearly two decades. Airbus initially acquired a partial ownership stake in the company in 2011. In September 2017, SAE opened its second hangar to expand capacity, and the following month, Airbus acquired the remaining shares to make SAE a fully owned subsidiary. At the time, Airbus positioned the acquisition as a primary driver for its regional services growth strategy in the Asia-Pacific market.

The transition of ownership to MAG aligns with Malaysia’s broader ambition to establish itself as a leading aerospace hub in the region. The Asia-Pacific MRO market is experiencing significant growth driven by expanding airline fleets, prompting operators to secure maintenance capacity and develop third-party revenue streams.

The financial terms of the October 1, 2026, acquisition have not been disclosed. The transaction is targeted for completion in 2027, subject to customary conditions precedent, including regulatory approval from the Civil Aviation Authority of Malaysia (CAAM).

AirPro News analysis

Airbus’s decision to divest SAE marks a notable shift from its 2017 strategy, when the manufacturer actively acquired MRO facilities to build out its services portfolio. For MAG, bringing SAE under its corporate umbrella secures critical maintenance capacity in a constrained global supply chain. As airlines face extended aircraft utilization due to new delivery delays, controlling MRO infrastructure provides a hedge against rising third-party maintenance costs and creates a lucrative revenue channel from other regional operators.

Deutsche Aircraft officially inaugurated its Final Assembly Line (FAL) for the D328eco regional turboprop at Leipzig/Halle Airport (LEJ) on September 29, 2026. The opening marks the return of commercial aircraft manufacturing to the German state of Saxony after a hiatus of more than 60 years.

The €100 million facility transitions the 40-seat aircraft programme from its development phase into serial production. According to a company press release, the new site establishes an end-to-end aerospace manufacturing capability within Germany, pairing engineering and testing operations in Oberpfaffenhofen with final assembly in Leipzig.

Facility capabilities and regional investment

The new Leipzig site covers 60,500 square metres and includes the main assembly line, a flight readiness hangar, a logistics centre, and an administrative headquarters. Deutsche Aircraft expects the facility to reach an annual production capacity of 48 aircraft as operations ramp up. The manufacturer projects the creation of approximately 250 direct jobs at the site.

The Free State of Saxony supported the development with €3.2 million in funding through the Federal-State GRW programme. Government officials highlighted the industrial significance of the project during the inauguration. Christian Hirte, Parliamentary State Secretary to the Federal Minister of Transport, stated that the programme demonstrates that advanced manufacturing and sustainable regional aviation can be developed and produced domestically for the global market.

Deutsche Aircraft Chief Executive Officer Nico Neumann emphasized the integration of the company’s facilities across the country.

“Together, our sites in Oberpfaffenhofen and Leipzig create an end-to-end capability for developing, certifying, industrialising, manufacturing and supporting complete aircraft in Germany. For the first time in more than 60 years, every phase of the aircraft lifecycle will be integrated under a German aircraft programme,” Neumann said.

Mitteldeutsche Flughafen AG Chief Executive Officer Götz Ahmelmann noted the operational shift for the airport, stating that aircraft will now be built and delivered from Leipzig rather than solely taking off and landing.

Programme timeline and supply chain realities

The inauguration follows a multi-year construction and development phase. Deutsche Aircraft held the groundbreaking ceremony for the Leipzig facility on May 16, 2023. The manufacturer subsequently rolled out the first D328eco test aircraft, designated TAC 1, at its Oberpfaffenhofen headquarters in May 2025, followed by a topping-out ceremony for the Leipzig assembly line on November 13, 2025.

On the engineering front, the company achieved a major certification milestone on September 10, 2026, with the successful completion of Low-Speed Taxi (LST) testing for the aircraft’s landing gear.

Despite the facility opening, the industrial schedule has faced headwinds. Reporting by Reuters indicates that the D328eco development timeline has been impacted by the COVID-19 pandemic and ongoing global aerospace supply chain disruptions. The aircraft is now scheduled to conduct its first flight in early 2027.

Addressing the supply chain challenges, Neumann told Reuters that the company had to adapt to the new situation, noting that they have demonstrated resilience after several things went wrong.

Market positioning for the D328eco

Deutsche Aircraft, a fully owned subsidiary of US aerospace firm Sierra Nevada Corporation, employs approximately 550 people. The company serves as the Original Equipment Manufacturer (OEM) and type certificate holder for legacy Dornier 328 operators worldwide, supporting both turboprop and jet-powered variants.

The D328eco is a modernised, stretched successor to the original Dornier 328 introduced in the 1990s. The updated 40-seat regional turboprop features new avionics and Pratt & Whitney Canada engines designed to operate on up to 100 percent synthetic sustainable aviation fuel (PtL SAF).

The aircraft enters a regional turboprop market currently dominated by ATR. Following the exit of Bombardier with its Dash 8-400, as well as legacy manufacturers Saab and Fokker, the sub-50-seat segment has seen limited new development. Positioned below the 50-seat ATR 42-600, the D328eco targets routes where the economics of larger aircraft are difficult to sustain. The design also focuses on operations involving short or unpaved runways and remote communities.

Commercial interest in the platform has grown steadily. German charter operator Private Wings became the launch customer on May 16, 2023, signing a Letter of Intent for five aircraft. According to Reuters, Deutsche Aircraft has now secured 134 letters of intent backed by customer deposits.

AirPro News analysis

We view the opening of the Leipzig facility as a critical industrial milestone, but the true test for Deutsche Aircraft lies in supply chain execution and converting its 134 letters of intent into firm orders. The regional turboprop market has been starved of new clean-sheet or heavily modernized sub-50-seat designs since the consolidation of the sector. While ATR dominates the broader turboprop space, the D328eco targets a specific niche where larger aircraft economics fail.

The ability to operate on 100 percent synthetic sustainable aviation fuel provides a distinct regulatory advantage in the European market, provided the manufacturer can navigate the lingering aerospace supply chain bottlenecks that have already pushed the first flight into 2027. Establishing a functional, end-to-end domestic supply chain in Germany insulates the programme from some global shocks, but engine and avionics deliveries will remain pacing items for the Leipzig assembly line.