The Boeing Company [NYSE: BA] announced today major program deliveries across its commercial and defense operations for the third quarter of 2020.
“We continue to work closely with our customers around the globe, understanding their near-term and longer term fleet needs, aligning supply and demand while navigating the significant impact this global pandemic continues to have on our industry,” said Greg Smith, Boeing executive vice president of Enterprise Operations and chief financial officer. “We’re taking actions to resize, reshape and transform our business to preserve liquidity, adapt to the new market reality and ensure that we deliver the highest standards of safety and quality as we position our company to be more resilient for the long term. Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability as we adapt and rebuild stronger for the other side of the pandemic.”
Major program deliveries during the third quarter were as follows:
– Acquisition Reinforces Lockheed Martin’s Commitment to Delivering Exceptional Systems to the Warfighter
Lockheed Martin [NYSE: LMT] today announced the signing of a definitive agreement to acquire a portion of Integration Innovation Inc. (i3), a software and systems engineering company based in Huntsville, Alabama. The portfolio alignment between i3 and Lockheed Martin provides the opportunity to design and deliver hypersonic-specific technology solutions that benefit the warfighter.
“Our customers require the most forward-thinking, advanced technology that anticipates and addresses their national security requirements. This business combination not only reinforces our commitment to their missions, but also expands our portfolio in a strategic way,” said Eric Scherff, vice president of Hypersonic Strike Programs at Lockheed Martin. “Combining i3’s talent and domain expertise with our shared vision for hypersonic strike will expand how we think about and deliver this critical capability to the warfighter across domains.”
i3’s hypersonic strike and defense business set offers strategic solutions to U.S. Government and commercial customers. Adding i3’s talent and expertise to the Lockheed Martin portfolio will expand capabilities for customers across several mission areas and national security needs, while also allowing for more integrated solutions.
“We’re proud to be a part of the Lockheed Martin family, as they are a technology authority and employ some of the best and brightest in the industry,” said Mike Wicks, CEO at i3. “We have invested much time and energy into developing strategic solutions at i3. And, we’re finding the need to synergize these offerings with Lockheed Martin is more timely than ever and unlocks the value to our joint customers.”
Subject to the satisfaction of customary closing conditions, the transaction is expected to close in approximately 30 days. Upon closing, i3’s Hypersonics portfolio will be managed by the corporation’s Space business area.
Boeing [NYSE: BA] and the U.S. Space Force successfully completed the first major engineering design review for the Wideband Global SATCOM (WGS)-11+ communications satellite. This successful review demonstrates that Boeing is ready to proceed to the final system design phase. Production will begin next year at Boeing’s El Segundo factory, with delivery scheduled for 2024.
WGS-11+ features a modern digital payload that performs at twice the operational capability of its predecessors, increasing the availability of military-grade communications. Leveraging advances in Boeing commercial technologies, it will provide secure communications to connect U.S. and allied forces globally.
The current WGS constellation, consisting of 10 satellites, is the backbone of the U.S. military’s global communications system, providing flexible, high data-rate connectivity. Users include all U.S. military services, the White House Communications Agency, the U.S. State Department and international partners.
“Completing this engineering design review is a key milestone and brings us one step closer to delivering this groundbreaking satellite to the warfighter in record time, significantly improving capacity and coverage to our soldiers, sailors, airmen, Marines and allies,” said Col. John Dukes, chief of the Geosynchronous/Polar Division at Space and Missile Systems Center Production Corps.
“WGS-11+ uses narrower spot beams to deliver a stronger, more reliable connection exactly where it’s needed, which means better performance and greater flexibility than ever before,” said Troy Dawson, vice president of Boeing Government Satellite Systems.
In addition to U.S. military forces, the WGS constellation provides service to international partners including Australia, Canada, Denmark, Luxembourg, New Zealand, the Netherlands, the Czech Republic and Norway.
– Single site to improve operational efficiency as company adapts to market downturn and positions for recovery and long-term growth
– 787 production to continue in Everett, Wash. until program begins building at the previously announced rate of six airplanes a month in 2021
As the airline industry continues to address the impact of COVID-19, The Boeing Company [NYSE: BA] said today it will consolidate production of 787 jets at its facility in North Charleston, S.C., starting in mid-2021, according to the company’s best estimate. The decision comes as the company is strategically taking action to preserve liquidity and reposition certain lines of business in the current global environment to enhance efficiency and improve performance for the long-term.
While Boeing’s versatile 787 family has outperformed other widebody airplanes during the challenging market downturn, its production system has been adjusted to accommodate the current difficult market environment while positioning the 787 family to ramp up production as air travel increases.
“The Boeing 787 is the tremendous success it is today thanks to our great teammates in Everett. They helped give birth to an airplane that changed how airlines and passengers want to fly. As our customers manage through the unprecedented global pandemic, to ensure the long-term success of the 787 program, we are consolidating 787 production in South Carolina,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes.
“Our team in Puget Sound will continue to focus on efficiently building our 737, 747, 767 and 777 airplane families, and both sites will drive Boeing initiatives to further enhance safety, quality, and operational excellence.”
The company began assembling 787-8 and 787-9 airplanes at its Everett site in 2007, and brought the North Charleston facility on line as a second final assembly line in 2010. However, only the North Charleston site is set up to build the larger 787-10 model. Production of the smaller 787 models will continue in Everett until the program transitions to the previously-announced production rate of six airplanes a month in 2021.
In July, Boeing announced an in-depth study into the feasibility of producing 787s at a single location. The review examined the impacts and benefits to Boeing customers, suppliers, employees and the overall health of the production system. The 787 study is part of an enterprise review underway to reassess all aspects of Boeing’s facility footprint, organizational structure, portfolio and investment mix, and supply chain health and stability.
This analysis confirmed the feasibility and efficiency gains created by consolidation, which enables the company to accelerate improvements and target investments to better support customers.
“We recognize that production decisions can impact our teammates, industry and our community partners,” said Deal. “We extensively evaluated every aspect of the program and engaged with our stakeholders on how we can best partner moving forward. These efforts will further refine 787 production and enhance the airplane’s value proposition.”
Boeing said it is assessing potential impacts to employment in Everett and North Charleston and will communicate any changes directly to its employees.
Two Embraer E195s have commenced operations in Vietnam with Bamboo Airways, offering the first jet service to Con Dao from Hanoi, Vinh and Hai Phong. Con Dao Island and the surrounding National Park is an area of outstanding natural beauty 1400km (760nm) from the capital Hanoi, off the southern coast of Vietnam. The popular tourist destination, featuring an archipelago of 16 islands, is currently only served by turboprop aircraft due to its short runway, light pavement, and lack of fuel provision.
The Embraer E195s join Bamboo Airways’ fleet on a wet-lease agreement with Denmark based Great Dane Airlines, adding to the growing number of E-Jet operators in the Asia Pacific region.
“Bamboo Airways is proud to offer jet-operated flights to Con Dao with the E195s,” said Mr. Dang Tat Thang – Executive Vice Chairman of Bamboo Airways. “The aircraft’s short runway performance makes it an ideal aircraft for flights to and from Con Dao. The two by two seating will offer our passengers a high level of comfort in a modern, spacious aircraft, including the one-of-its-kind Business Class on the route to Con Dao.”
“Congratulations to Bamboo Airways on this strategic move. The E-Jets will give them great flexibility both in performance as well as in economics,” says Raul Villaron, Vice President, Asia Pacific for Embraer’s commercial aviation unit. “The E195’s fuel efficiency and economics enables Bamboo Airways to cost effectively manage fluctuating demand and operate lower density routes with the right sized aircraft. We welcome Bamboo Airways to the Embraer family and our global team are here to support them.”
Bamboo Airways is the first to operate direct flights to Con Dao from three cities; the capital Hanoi, Hai Phong city in the North and Vinh city in the central area. There will be two flights a day on the Hanoi – Con Dao route and daily flights from Hai Phong and Vinh to Con Dao in the initial phase. Bamboo Airways are operating the aircraft in a comfortable single class configuration with 118 seats.
Embraer is the world’s leading manufacturer of commercial aircraft up to 150 seats with more than 100 customers from all over the world. For the E-Jets program alone, Embraer has logged more than 1,800 orders and 1,600 aircraft have been delivered. Today, E-Jets are flying in the fleet of more than 80 customers in some 50 countries. The versatile 70 to 150-seat family is flying with low-cost airlines as well as with regional and mainline carriers.
– Four aircraft to be converted initially to support the company’s e-commerce solutions
Azul S.A., “Azul” (NYSE: AZUL), announces today that it has received certification for the world’s first Embraer E195 adapted dedicated cargo aircraft. The first aircraft began commercial services on Saturday, September 26th. Another three aircraft are expected to be adapted by the end of 2020, delivering a unique and focused solution to the Company’s e-commerce customers. Two of the four planes have already been dedicated to an e-commerce provider for a period of at least six months.
The four E-jets will join the Company’s two dedicated Boeing 737-400 freighters, for a total of six aircraft dedicated for Azul Cargo Express, Azul’s cargo business unit. In addition, the Company’s dedicated fleet capabilities are further expanded by its five ATR 72-600 Quick-Change aircraft. These dedicated cargo aircraft, together with belly capacity on Azul’s passenger network, the largest in Brazil, gives the Company’s customers exclusive access to the broadest, fastest and most efficient range of logistics services.
“We are excited to continue diversifying our business model with the adaptation of these four Embraer aircraft. The size, range, and performance of the E195, gives it the perfect combination of payload capacity, volume capacity and low trip-cost economics allowing fast and efficient logistics access all around Brazil. We are seeing record demand for the services provided by Azul Cargo Express and are pleased to innovate to further meet the needs of our customers. With the combination of our dedicated aircraft, belly capacity on the largest domestic network in Brazil, and our extensive ground partnerships, we are ready to meet the growing need of all our logistics and especially all our e-commerce customers. Our logistics solutions have the potential to transform e-commerce in Brazil”, says John Rodgerson, CEO of Azul.
Airbus has revealed three concepts for the world’s first zero-emission commercial aircraft which could enter service by 2035. These concepts each represent a different approach to achieving zero-emission flight, exploring various technology pathways and aerodynamic configurations in order to support the Company’s ambition of leading the way in the decarbonisation of the entire aviation industry.
All of these concepts rely on hydrogen as a primary power source – an option which Airbus believes holds exceptional promise as a clean aviation fuel and is likely to be a solution for aerospace and many other industries to meet their climate-neutral targets.
The three concepts – all codenamed “ZEROe” – for a first climate neutral zero-emission commercial aircraft include:
A turbofan design (120-200 passengers) with a range of 2,000+ nautical miles, capable of operating transcontinentally and powered by a modified gas-turbine engine running on hydrogen, rather than jet fuel, through combustion. The liquid hydrogen will be stored and distributed via tanks located behind the rear pressure bulkhead.
A turboprop design (up to 100 passengers) using a turboprop engine instead of a turbofan and also powered by hydrogen combustion in modified gas-turbine engines, which would be capable of traveling more than 1,000 nautical miles, making it a perfect option for short-haul trips.
A “blended-wing body” design (up to 200 passengers) concept in which the wings merge with the main body of the aircraft with a range similar to that of the turbofan concept. The exceptionally wide fuselage opens up multiple options for hydrogen storage and distribution, and for cabin layout.
In order to tackle these challenges, airports will require significant hydrogen transport and refueling infrastructure to meet the needs of day-to-day operations. Support from governments will be key to meet these ambitious objectives with increased funding for research & technology, digitalisation, and mechanisms that encourage the use of sustainable fuels and the renewal of aircraft fleets to allow airlines to retire older, less environmentally friendly aircraft earlier.
In 2015, Mobile, Alabama became home to Airbus’ first US-based commercial aircraft manufacturing facility. Now celebrating five years of production, it has grown from an initial workforce of around 250 staff producing A320 Family aircraft, to 1,000 employees building both the A220 and A320 aircraft families. To date, the factory has delivered more than 180 A320 Family aircraft to eight customers; aircraft which have subsequently flown 60 million passengers 500 million miles.
For Airbus, commercial aircraft production in Mobile signified two things: its position as a truly global aircraft company, and that it was also a truly American manufacturer. With the addition of this brand new US operation to the company’s A320 production network in Europe and Asia, Airbus had strategically augmented its worldwide industrial base in America – the largest single-aisle aircraft market in the world – to be closer to its US-based customers and key supplier partners.
Enter the A220 Family
The journey of Airbus’ investment in Mobile took a major stride in October 2017 when it announced the decision to introduce a second aircraft programme to the site: the A220 Family, entailing a second assembly line to be built adjacent to the original A320 plant – which would also complement the A220’s primary production site in Mirabel, Quebec, Canada. The arrival into the US of this newest Single-Aisle Family member was an important testament to the confidence that Airbus had in Mobile, and the confidence in the team there to make it happen. Fast-forward to the present, and the first US-built A220 is already in its final stages of manufacture for Delta Air Lines – which will roll-out in the very near future.
Prior to the introduction of the A220 and expansion of the A320 facilities, the Mobile site sat on 116 acres. Today Airbus has added another 70 acres of real-estate which accommodates: two new final phase/flight-line hangars (four bays); an enlarged delivery centre with four new aircraft parking spaces; a ‘pre-transshipment’ hangar and of course the new ‘flow-line’ final assembly line (FAL) building itself. Notably, the delivery centre will be named after one of the company’s former leaders, Tom Enders. Enders supported and drove the establishment of a new Airbus aircraft factory in the US during his tenure as CEO of Airbus.
Doubling local industrial footprint in five years
When complete, nearly US$1 billion will have been invested in Mobile – to create new state-of-the-art facilities designed and built primarily by local companies. In short, Airbus has doubled its footprint there in just five years – establishing a new manufacturing home for Airbus’ Single-Aisle Family. Moreover, a recent study* concluded that Airbus’ total economic impact throughout the state of Alabama in five years was US$1.2 billion, supporting more than 15,000 jobs through construction and payroll.
Boeing Australia powered up the commercial turbofan engine on the first Loyal Wingman aircraft in September, as part of ground testing and preparations for first flight.
This milestone comes on the heels of Boeing completing the first unmanned Loyal Wingman aircraft for the Royal Australian Air Force earlier this year, a major step forward for the unmanned vehicle serving as the foundation for the global Boeing Airpower Teaming System, an artificial intelligence-powered teaming aircraft developed for the global defense market.
“This engine run gets us closer toward flying the first aircraft later this year and was successful thanks to the collaboration and dedication of our team,” said Dr. Shane Arnott, program director of the Boeing Airpower Teaming System. “We’ve been able to select a very light, off-the-shelf jet engine for the unmanned system as a result of the advanced manufacturing technologies applied to the aircraft.”
– Boeing signs 15-year renewable energy agreement with SRPAgreement supports Boeing’s emission reduction goalsSRP solar photovoltaic plant scheduled to open in 2021
Boeing [NYSE: BA] and the Salt River Project (SRP) utility have signed a multi-year agreement to power Boeing’s Mesa site with renewable solar energy.
Boeing will be one of several companies to receive power from SRP’s soon-to-be-built 100-megawatt solar photovoltaic plant in Eloy, Arizona. Boeing’s Mesa site will receive about 25% of its electricity needs from this plant over the next 15 years. This supports the company’s overall goal to reduce greenhouse gas emissions 25% by 2025, and ultimately power operations with 100% renewable energy.
“It makes sense to take advantage of renewable solar energy at a location that enjoys 295 days of sunshine a year,” said Beth Schryer, Boeing vice president of Facilities & Asset Management. “This will help offset the same amount of energy equivalent to that used in one year by 670 average U.S. homes.”
SRP’s 700-acre Eloy plant is expected to begin operation in December 2021. Located approximately 50 miles from the plant is Boeing’s Mesa site. The Mesa site produces Apache helicopters and houses various corporate, commercial and defense teams in more than 40 buildings. Boeing employs more than 4,600 people in Arizona, with most based in Mesa.
“Boeing’s longstanding vision of improving the environment and reducing carbon emissions is a natural fit for the SRP Sustainable Energy Offering,” said Jim Pratt, SRP Associate General Manager and Chief Customer Executive. “We appreciate customers like Boeing working with us on this collaborative initiative to invest in renewable energy that not only helps them achieve their aerospace industry sustainability goals, but does so at an affordable cost.”
This agreement expands Boeing’s leadership in the use of renewable energy and energy efficiency. Two Boeing sites – Renton, Washington, and Charleston, South Carolina – use 100% renewable energy today. The company is also ranked 17th on the EPA’s Green Power Partnership Fortune 500® Partners List, and has been named an EPA ENERGY STAR® Partner of the Year for 10 years running.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 160,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.
