The Boeing logo is displayed on a screen, at the NYSE in New York
WASHINGTON (Reuters) – Boeing Co <BA> has decided not to compete as a prime contractor to replace the Pentagon’s aging U.S.-based Minuteman III missile system, paving the way for Northrop Grumman Corp <NOC> to win a contract worth tens of billions of dollars.
Friday marked the deadline to submit proposals to continue work on the replacement of the nearly half-century-old intercontinental ballistic missile (ICBM) system as the military embarks on a costly modernization of its aging atomic weapons.
Boeing said in a statement that it was disappointed it was unable to submit a bid. Northrop said it had submitted its proposal. No other bidders were expected.
Boeing’s decision not to enter a bid as a prime contractor had been foreshadowed this summer in a letter from the chief executive of Boeing Defense Space and Security, Leanne Caret, to Air Force leadership, saying Northrop’s 2018 purchase of solid rocket motor maker Orbital ATK might make it difficult for Boeing to compete on cost.
Orbital is the top producer of the solid fuel rocket motors generally used in Minuteman III and similar missiles.
Upgrading the U.S. nuclear force was expected to cost more than $350 billion over the next decade as the United States works to replace its bombs, nuclear bombers, missiles and submarines. Some analysts estimated the cost of modernization at $1 trillion over 30 years.
The Pentagon’s Cost Assessment and Program Evaluation office has said the total cost to replace Minuteman III could top U.S. $85 billion.
BRUSSELS, Dec 5 (Reuters) – An association representing minority investors in Brazil is lobbying European antitrust regulators to spike a deal between planemakers Embraer SA and Boeing Co, calling it a killer acquisition.
Aurelio Valporto, the head of minority investor association Abradin, said the European Commission should block Boeing’s proposed $4.2 billion purchase of 80% Embraer’s commercial passenger jet division or demand hefty concessions.
“What will be left from Embraer won’t survive, and even if it was possible to survive, Embraer wouldn’t be able to produce any aircraft with 50 passengers or more,” Valporto said in an interview late on Wednesday, arguing that Embraer and Boeing planes compete in the marketplace.
Embraer’s commercial jet division focuses on the 70 to 150-seat segment, competing directly with the CSeries jets designed by Bombardier Inc, a division that was bought by Europe’s Airbus SE.
Boeing aims to take control of Embraer’s commercial jet business, its most profitable, to compete directly with Airbus in the market for planes with fewer than 150 seats.
Embraer said in a statement on Thursday that the deal will “serve the interests of shareholders by enabling Embraer to expand markets and increase sales.” The deal was backed by around 97% of Embraer’s shareholders earlier this year.
Valporto complained about the deal to the European Commission two months ago, saying it hurt competition in the Brazilian aerospace industry, and on Wednesday took his grievance to antitrust officials in Brasilia.
The deal has already been approved by regulators in the United States, China and Japan. If it closes, Embraer will receive dividends from its remaining 20% stake in the commercial jet business, but will have to rely more heavily on its business jets and defense divisions to turn a profit. Those two divisions have posted losses in recent quarters.
The European Commission, which launched a full-scale investigation into the deal in October, declined to comment.
Boeing said it and Embraer had been engaged with the European Commission and other global regulatory authorities since late last year.
“We continue to co-operate with the European Commission and CADE as they assess our transaction and look forward to a positive resolution,” a spokesman for the company said.
The EU has voiced concerns the deal would remove Embraer, the world’s third-largest commercial aircraft maker, from the industry, an indication that it may demand significant concessions from Boeing.
The EU regulator halted its investigation last month while waiting for Boeing to submit data on the deal.
(Reporting by Foo Yun Chee in Brussels Additional reporting by Marcelo Rochabrun in Sao Paulo Editing by Kirsten Donovan and Matthew Lewis)
– Conrad Chun, a nine-year Boeing employee, named vice president of Communications for Boeing Commercial Airplanes
CHICAGO, Nov. 12, 2019 /PRNewswire/ — Boeing [NYSE:BA] today announced the appointment of Conrad Chun as vice president of Communications for Boeing Commercial Airplanes, effective immediately.
Chun most recently served as vice president of Communications for Boeing Global Services where he was responsible for media relations, employee and executive communications, digital communications, government and customer relations, and product and services marketing communications in support of Boeing’s fastest-growing business unit.
Previously, Chun served as director of Communications for Global Services & Support and Boeing Military Aircraft, both of which were divisions of Boeing Defense, Space & Security.
In his new role, Chun will continue reporting to Anne Toulouse, senior vice president of Communications, and Stan Deal, president and CEO of Boeing Commercial Airplanes.
“Stan and I are confident in Conrad’s abilities to help us prepare to safely return the 737 MAX to service and continue to drive progress across our commercial airplanes business,” Toulouse said.
Chun joined Boeing in 2010 after retiring from the U.S. Navy as a captain with 24 years of service. Chun is a graduate of the U.S. Naval Academy. He holds a bachelor’s degree in economics and a master’s degree in information systems from the Naval Postgraduate School. Chun currently serves as chairman of the board of directors for the Military Spouse Corporate Career Network (MSCCN), a nonprofit organization that focuses on job-placement solutions for military-affiliated spouses and caregivers to war-wounded veterans.
Chun succeeds Linda Mills, who announced she will be leaving the company.
“We thank Linda for her many contributions and wish her all the best in the future,” Toulouse said.
Alexa Marrero, current director of Communications Operations for Boeing Global Services, will serve as interim head of Communications for Boeing Global Services until a permanent replacement is selected.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 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.
(Saint-Cloud, October 29, 2019) – This summer, Lann-Bihoué French naval air station received the first two ATL2 maritime patrol aircraft upgraded by Dassault Aviation.
Last week, Florence Parly, Minister of the Armed Forces, flew on one of these aircraft.
These two events demonstrate the progress made on the upgrade program which is designed to modernize the ATL2 combat system to standard 6.
new radar: Thales Search Master with active antenna,
new Thales acoustic subsystem to gather and process signals from the latest-generation air-dropped sonobuoys for submarine detection,
new navigation console designed by Dassault Aviation,
new consoles for the tactical display subsystem, developed by SIAé.
The upgrade work is performed by Dassault Aviation and Thales (co-contractors), in association with Naval Group and in cooperation with SIAé. Architect of the combat system, Dassault Aviation is as well responsible for development of the core system including LOTI software designed by Naval Group. Dassault Aviation is also in charge of overall integration of all subsystems.
All the specifications for this program were established using the PLM Systèmes tool as part of a Dassault Aviation-Thales-Naval Group-SIAé collaborative work platform installed at St-Cloud in the Dassault Aviation design office.
The standard 6 upgrade will improve the ATL2s’ capability to support the Strategic Ocean Force, to deal with modern threats (future nuclear or conventional submarines, naval forces at sea, etc.) and to support air-land missions, until 2030.
France is one of the very few countries producing high-technology maritime patrol aircraft combining detection (optronics, radar, acoustics) with a variety of weapons (anti-ship missiles, torpedoes, laser-guided weapons).
“This expertise as an architect of maritime patrol solutions, both for the platform and for systems integration, is the result of experience dating back to the late 1950s and the launch of the ATL1 program, the predecessor of the ATL2. Dassault Aviation has extended this experience, from the 1970s onwards, with the maritime surveillance Falcons, the latest version of which is the Falcon 2000 MRA-based Albatros program. As we have shown once again with the standard 6, this maritime patrol/maritime surveillance expertise builds largely on the trust and the excellent working relations between our company, the DGA and the French Navy, to which I express my sincere gratitude. We will leverage this know-how to prepare together maritime patrol solutions beyond 2030”, declared Eric Trappier, Chairman and CEO of Dassault Aviation.
Leonardo’s KRONOS family of radar products are multi-functional, multi-mission solutions
The KRONOS LAND radar is highly mobile and quick to deploy: it can be brought into operation in the field in just 15 minutes
The Bangladesh Air Force (BAF) has ordered Leonardo’s KRONOS LAND radar to provide air surveillance, allowing operators to detect and track targets in tactical environments. Leonardo has announced the contract at BIDEC (Bahrain International Defence Exhibition and Conference) tri-service exhibition, which is taking place at Manama (Baharain) from 28 to 30 October.
Leonardo will also supply communications equipment, twelve months of technical support services, spare parts and a comprehensive training programme for Bangladeshi Air Force personnel with modules in Italy and Bangladesh. As a complete package, this contract will enable the BAF to develop a long-term maintenance capability and preserve the functionality of the system.
Completely designed and developed by Leonardo, the KRONOS LAND is a multi-functional, multi-mission 3D radar for air surveillance and defence, based on latest-generation Full Active-Electronically-Scanned-Array (AESA, also known as E-scan) technology. Leonardo has sold more than 40 KRONOS family systems worldwide.
The contract to supply KRONOS LAND to the Bangladesh Air Force bolsters Leonardo’s presence in Bangladesh. It follows the earlier provision of the RAT31 surveillance system to the BAF for early warning and air defence.
WASHINGTON, Oct 25 (Reuters) – Microsoft Corp. has won the Pentagon’s $10 billion cloud computing contract, the Defense Department said on Friday, beating out favorite Amazon.com Inc.
The contracting process had long been mired in conflict of interest allegations, even drawing the attention of President Donald Trump, who has publicly taken swipes at Amazon and its founder Jeff Bezos. Trump in August said his administration was reviewing Amazon’s bid after complaints from other companies.
The Joint Enterprise Defense Infrastructure Cloud (JEDI) contract is part of a broader digital modernization of the Pentagon meant to make it more technologically agile. Specifically, a goal of JEDI is to give the military better access to data and the cloud from battlefields and other remote locations.
Oracle Corp had expressed concerns about the award process for the contract, including the role of a former Amazon employee who worked on the project at the Defense Department but recused himself, then later left the Defense Department and returned to Amazon Web Services.
In a statement, an Amazon Web Services (AWS) spokesman said the company was “surprised about this conclusion.”
The company said that a “detailed assessment purely on the comparative offerings” would “clearly lead to a different conclusion,” according to the statement.
AWS is considering options for protesting the award, a person familiar with the matter told Reuters.
Although the Pentagon boasts the world’s most potent fighting force, its information technology remains woefully inadequate, according to many officials.
Officials have complained of having outdated computer systems and being unable to access files or share information as quickly as they might be able to in the private sector.
“If I am a warfighter, I want as much data as you could possibly give me,” Lieutenant General Jack Shanahan, the director of the Joint Artificial Intelligence Center, told reporters in August describing the importance of the contract.
Some companies were concerned that a single award would give the winner an unfair advantage in follow-on work. The Pentagon has said it planned to award future cloud deals to multiple contractors.
This week, U.S. Defense Secretary Mark Esper removed himself from reviewing the deal due to his adult son’s employment with one of the original contract applicants, IBM Corp. IBM had previously bid for the contract but had already been eliminated from the competition.
Microsoft said it was working on a comment. IBM and Oracle did not immediately return requests for comment.
In a book slated for publication Oct. 29, retired Navy commander Guy Snodgrass, who served as a speech writer to former Defense Secretary Jim Mattis, said Trump called Mattis and directed him to “screw Amazon” by preventing it from bidding on the JEDI contract, according to an excerpt of the book seen by Reuters ahead of its release.
“We’re not going to do that,” Mattis later told other Pentagon officials, according to the excerpt. “This will be done by the book, both legally and ethically.”
Snodgrass declined to comment pending the release of his book.
In a statement announcing Microsoft as the winner, the Pentagon underscored its view that the competition was conducted fairly and legally.
“All (offers) were treated fairly and evaluated consistently with the solicitation’s stated evaluation criteria. Prior to the award, the department conferred with the DOD Inspector General, which informed the decision to proceed,” it said.
Microsoft shares were up 3% to $144.98 in after-hours trading after the news. Amazon shares were down 0.92% to $1,745.12.
The Pentagon said it had awarded more than $11 billion across 10 separate cloud contracts over the past two years.
“As we continue to execute the DOD Cloud Strategy, additional contracts are planned for both cloud services and complementary migration and integration solutions necessary to achieve effective cloud adoption,” the Pentagon said.
(Additional reporting by Stephen Nellis and Jeffrey Dastin in San Francisco Reporting by Phil Stewart in Washington; Editing by Cynthia Osterman, Sonya Hepinstall and Lincoln Feast)
WASHINGTON, Oct. 14, 2019 /PRNewswire/ — Sikorsky, a Lockheed Martin company (NYSE: LMT), today introduced RAIDER X™, its concept for an agile, lethal and survivable compound coaxial helicopter, specifically designed for securing vertical lift dominance against evolving peer and near-peer threats on the future battlefield. Through the U.S. Army’s Future Attack Reconnaissance Aircraft (FARA) program, RAIDER Xis the out-front platform in the Service’s revolutionary approach for rapid development and delivery of game changing technology and warfighter capabilities, equipped for the most demanding and contested environments. RAIDER X enables the reach, protection and lethality required to remain victorious in future conflicts.
“RAIDER X converges everything we’ve learned in years of developing, testing and refining X2 Technology and delivers warfighters a dominant, survivable and intelligent system that will excel in tomorrow’s battlespace where aviation overmatch is critical,” said Frank St. John, executive vice president of Lockheed Martin Rotary and Mission Systems. “The X2 Technology family of aircraft is a low-risk solution and is scalable based on our customers’ requirements.”
RAIDER X draws on Lockheed Martin’s broad expertise in developing innovative systems using the latest digital design and manufacturing techniques. Sikorsky’s RAIDER X prototype offers:
Exceptional Performance: The X2 rigid rotor provides increased performance including; highly responsive maneuverability, enhanced low-speed hover, off-axis hover, and level acceleration and braking. These attributes make us unbeatable at the X.
Agile, Digital Design: State-of-the-art digital design and manufacturing is already in use on other Lockheed Martin and Sikorsky production programs such as CH-53K, CH-148 and F-35, and will enable the Army to not only lower the acquisition cost, but enable rapid, affordable upgrades to stay ahead of the evolving threat.
Adaptability: Modern open systems architecture (MOSA)-based avionics and mission systems, offering “plug-and-play” options for computing, sensors, survivability and weapons, benefiting lethality and survivability, operational mission tailoring and competitive acquisitions.
Sustainable/Maintenance: Designed to decrease aircraft operating costs by utilizing new technologies to shift from routine maintenance and inspections to self-monitoring and condition-based maintenance, which will increase aircraft availability, reduce sustainment footprint forward and enable flexible maintenance operating periods.
Growth/Mission Flexibility: Focused on the future and ever evolving threat capabilities, X2 compound coaxial technology provides unmatched potential and growth margin for increased speed, combat radius and payload. This potential and growth margin further enables operational mission flexibility which includes a broader range of aircraft configurations and loadouts to accommodate specific mission requirements.
The nationwide supply team that Sikorsky has comprised to build RAIDER X will join company leaders today to introduce RAIDER X during the annual conference of the Association of the United States Army in Washington, D.C.
“RAIDER X is the culmination of decades of development, and a testament to our innovation and passion for solving our customers’ needs,” said Sikorsky President Dan Schultz. “By leveraging the strength of the entire Lockheed Martin Corporation, we will deliver the only solution that gives the U.S. Army the superiority needed to meet its mission requirements.”
With RAIDER X, Sikorsky introduces the latest design in its X2 family of aircraft. To date, X2 aircraft have achieved/demonstrated:
Speeds in excess of 250 knots
High altitude operations in excess of 9,000 feet
Low-speed and high-speed maneuver envelopes out to 60+ degrees angle of bank
ADS-33B (Aeronautical Design Standard) Level 1 handling qualities with multiple pilots
Flight controls optimization and vibration mitigation
“The power of X2 is game changing. It combines the best elements of low-speed helicopter performance with the cruise performance of an airplane,” said Sikorsky experimental test pilot Bill Fell, a retired Army pilot who has flown nearly every RAIDER test flight. “Every flight we take in our S-97 RAIDER today reduces risk and optimizes our FARA prototype, RAIDER X.”
The development of X2 Technology and the RAIDER program has been funded entirely by significant investments by Sikorsky, Lockheed Martin and industry partners.
Sikorsky introduced RAIDER X as its entry to the U.S. Army’s Future Attack Reconnaissance Aircraft (FARA) prototype competition. RAIDER X draws on Lockheed Martin’s broad expertise in developing innovative systems using the latest digital design and manufacturing techniques. Image courtesy, Sikorsky a Lockheed Martin company.
PARIS, Oct 16 (Reuters) – France and Germany have signed a binding deal on arm exports control rules for jointly developed programmes, such as the tank and the warplane of the future, the two countries said on Wednesday in a statement issued after a joint cabinet meeting held in Toulouse.
German curbs on arms exports to non-European Union or non-NATO countries have been a thorn in bilateral co-operation for years. Germany’s SPD party, part of the ruling coalition, is particularly concerned about the trade.
According to the deal signed on Wednesday, Germany will not block French exports to third countries provided equipment was made with less than 20% German components.
French firms, such as Nexter and Arquus, previously known as Renault Trucks Defense, say German restrictions have hindered export deals. Nexter was also worried about the feasibility of the tank of the future project (MGCS) that should be developed with German firm Krauss-Maffei Wegmann.
Airbus Defence & Space and Dassault equally complained that the SCAF fighter jet project with Germany and Spain could be left in limbo.
France and Germany tentatively agreed to speed up the development of the warplane in the next few months, French President Emmanuel Macron said during a news conference with German Chancellor Angela Merkel.
The two countries will sign in January 2020 a deal to develop the SCAF demonstrator programme, French minister of Armed Forces Florence Parly said on Twitter.
Besides defence deals, Paris and Berlin also said they agreed to give preferential treatment to European companies for the launch of space rockets.
(Writing by Benoit Van Overstraeten and Tangi Salaün; Editing by John Irish)
– Companies sign MOU to investigate product development for premium market
– Builds on efforts to develop new urban air mobility ecosystem
STUTTGART, Germany and CHICAGO, Oct. 10, 2019 /PRNewswire/ — Porsche and Boeing [NYSE: BA] signed a Memorandum of Understanding to explore the premium urban air mobility market and the extension of urban traffic into airspace. With this partnership, both companies will leverage their unique market strengths and insights to study the future of premium personal urban air mobility vehicles.
“Porsche is looking to enhance its scope as a sports car manufacturer by becoming a leading brand for premium mobility. In the longer term, this could mean moving into the third dimension of travel,” says Detlev von Platen, Member of the Executive Board for Sales and Marketing at Porsche AG. “We are combining the strengths of two leading global companies to address a potential key market segment of the future.”
As part of the partnership, the companies will create an international team to address various aspects of urban air mobility, including analysis of the market potential for premium vehicles and possible use cases.
Boeing, Porsche and Boeing subsidiary Aurora Flight Sciences are also developing a concept for a fully electric vertical takeoff and landing vehicle. Engineers from both companies, as well as Porsche subsidiaries Porsche Engineering Services GmbH and Studio F.A. Porsche, will implement and test a prototype.
“This collaboration builds on our efforts to develop a safe and efficient new mobility ecosystem, and provides an opportunity to investigate the development of a premium urban air mobility vehicle with a leading automotive brand,” said Steve Nordlund, Vice President and General Manager of Boeing NeXt, an organization that is laying the foundation for a next-generation mobility ecosystem in which autonomous and piloted vehicles can safely coexist. “Porsche and Boeing together bring precision engineering, style and innovation to accelerate urban air mobility worldwide.”
A 2018 study by Porsche Consulting forecasts that the urban air mobility market will pick up speed after 2025. The study also indicates that urban air mobility solutions will transport passengers more quickly and efficiently than current conventional means of terrestrial transport, at a lower cost and with greater flexibility.
Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As the top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 150,000 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.
– Boeing and Virgin Galactic enter strategic partnership to transform commercial space travel and mobility
– Latest investment to date by Boeing HorizonX Ventures organization
Boeing [NYSE: BA] is investing $20 million in Virgin Galactic, a vertically integrated human spaceflight company. The companies will work together to broaden commercial space access and transform global travel technologies.
“Boeing’s strategic investment facilitates our effort to drive the commercialization of space and broaden consumer access to safe, efficient, and environmentally responsible new forms of transportation,” said Brian Schettler, senior managing director of Boeing HorizonX Ventures. “Our work with Virgin Galactic, and others, will help unlock the future of space travel and high-speed mobility.”
To date, Virgin Galactic has invested $1 billion of capital to build reusable human spaceflight systems designed to enable significantly more people to experience and utilize space. In July, the company announced its intent to become a publicly-listed entity via a business combination with Social Capital Hedosophia Holdings Corp. The Boeing investment will be in return for new shares in Virgin Galactic and is therefore contingent on the closing of that transaction, which is expected to close in the fourth quarter of 2019, and any such investment will be in the post-business combination company.
This investment brings together two companies with extensive experience in the space industry. Virgin Galactic is a pioneer of commercial human space flight and is the first and only company to have put humans into space in a vehicle built for commercial service, having built and flown a Mach 3 passenger vehicle. Through its manufacturing and development capabilities, Virgin Galactic can design, build, test, and operate a fleet of advanced aerospace vehicles. Boeing has unsurpassed experience transporting people to orbit and building and operating large structures in that challenging environment. A part of every U.S. manned space program, Boeing serves as NASA’s prime contractor for the International Space Station (ISS) and is preparing the new, reusable, Starliner space capsule for launch to the ISS.
“This is the beginning of an important collaboration for the future of air and space travel, which are the natural next steps for our human spaceflight program,” said Sir Richard Branson, founder of Virgin Galactic. “Virgin Galactic and Boeing share a vision of opening access to the world and space, to more people, in safe and environmentally responsible ways.”
Boeing Defense, Space & Security President and CEO Leanne Caret, said “the unique expertise of our companies stretches from points all around the world to the deepest reaches of space. Together we will change how people travel on Earth, and among the stars, for generations to come.”
George Whitesides, CEO of Virgin Galactic, noted: “we are excited to partner with Boeing to develop something that can truly change how people move around the planet and connect with one another. As a Virgin company, our focus will be on a safe and unparalleled customer experience, with environmental responsibility to the fore.”
Additional information on specific projects to be pursued will be shared in the future.
