Tag: contracts (Page 2 of 3)

Lockheed Martin Picks ABL Space Systems to Power First UK Vertical Satellite Launch

February 8, 2021 / WIL BALDWIN

HARWELL, Oxford, Feb. 8, 2021 – Lockheed Martin [NYSE: LMT] has contracted ABL Space Systems, of El Segundo, California, a developer of low-cost launch vehicles and launch systems for the small satellite industry, to supply a rocket and associated launch services for the company’s first UK vertical satellite launch.

The project known as UK Pathfinder Launch is planned to be the first ever vertical small satellite launch from UK soil, from Scotland in 2022. It will also be the first UK commercial launch for U.S.-based ABL Space Systems’ new RS1 rocket.

Nik Smith, Regional Director, Lockheed Martin Space, said: “We are absolutely committed to the success of this programme and the world class capability that ABL Space Systems brings will allow us to build on our long-standing partnership with the UK and strengthen the growth of the UK space sector, aligned to the UK Government’s prosperity and industrial strategy.”

ABL Space Systems’ flexible, integrated GSO launch system, and RS1 rocket, allows for a rapid and cost-effective deployment with outstanding launch performance.

Lockheed Martin’s UK Pathfinder Launch supports the UK Space Agency’s commercial spaceflight programme – Launch UK. In October, the UK Space Agency confirmed Lockheed Martin’s plans to move its programme to the Shetland Space Centre and in January, planning proposals were submitted for the space launch facility in Unst.

Ian Annett, Deputy CEO, UK Space Agency said: “We want the UK to be the first in Europe to launch small satellites into orbit, attracting innovative businesses from all over the world, accelerating the development of new technologies and creating hundreds of high-skilled jobs across the whole of the UK. Lockheed Martin’s selection of ABL Space Systems for their UK Pathfinder launch brings us one step closer to realising this ambition – putting the UK firmly on the map as Europe’s leading small satellite launch destination.

The addition of ABL Space Systems as a partner completes Lockheed Martin’s UK Pathfinder Launch programme team. On launch day, ABL Space Systems’ RS1 rocket will lift off from Shetland Space Centre, in Unst, Shetland, the UK’s most northerly island. Once in orbit, the rocket will release a small launch orbital manoeuvring vehicle, an agile platform built by MOOG, in Reading, UK, which can carry and deploy up to six 6U CubeSats, optimising orbital placement and timing for each small satellite’s respective missions.

To demonstrate the full value of this new UK space transportation capability, two of the CubeSats deployed will be Lockheed Martin’s own technology demonstration spacecraft.

In 2019, ABL Space Systems announced that it had received a strategic investment from Lockheed Martin Ventures to advance the launch provider’s development and test programme.

A crowd that included Air Force leadership, congressional representatives and senators, executives and plant personnel from the Lockheed Martin Aeronautics Corporation attended a ceremony dedicating the delivery of the final F-22 Raptor in Marietta, Ga., May 2. (U.S. Air Force photo/Don Peek)

Lockheed Martin Inks $4.4B Deal to Acquire Aerojet Rocketdyne

December 20, 2020 / WIL BALDWIN

From Reuters News – Reporting by Mike Stone in Washington, D.C., Editing by Greg Roumeliotis

Dec 20 (Reuters) – Lockheed Martin Corp (NYSE: LMT) said on Sunday that it has agreed acquire U.S. rocket engine manufacturer Aerojet Rocketdyne Holdings Inc (NYSE: AJRD) for $4.4 billion, including debt and net cash.

The deal is Lockheed’s biggest acquisition since Jim Taiclet took over as chief executive in June. He is seeking to beef up the company’s propulsion capabilities amid competition from new entrants such as SpaceX and Blue Origin, for space contracts with the U.S. government.

“Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for our customers and the American taxpayer,” Taiclet said in a statement.

Lockheed said it will pay $56 per share for Aerojet Rocketdyne, a 33 percent premium to Friday’s closing price. The purchase price will be reduced to $51 per share after the payment of a pre-closing special dividend, Lockheed added.

The Bethesda, Maryland-based company already uses Aerojet Rocketdyne’s propulsion systems in its aeronautics, missiles and fire control offerings.

Lockheed said the transaction, which is set to be scrutinized by regulators given the company’s leading position in the defense sector, is expected to close in the second half of 2021.

Leading the Way for the Future of EGNOS

December 11, 2020 / WIL BALDWIN

Airbus-led consortiums have recently won a series of contracts to shape the future of EGNOS, the European Geostationary Navigation Overlay Service. EGNOS enhances Galileo and GPS signals to provide augmented safety of life services.

EGNOS V3, set to replace the current version, is already being developed by a consortium of 20 European companies led by Airbus. It will enable ‘Category I’ automatic landing of aircraft – with the flight crew supervising – in weather conditions where it would otherwise be dangerous or impossible to operate.

To prepare EGNOS V3 Evolutions, the European Space Agency (ESA) has awarded a new study contract to Airbus. The focus is on the use of the augmentation service for stringent operations like Category II approach and landing under very low visibility conditions going beyond the current EGNOS V3 performance requirements.

Preceding this, Airbus has been conducting an innovative study under the ESA NAVISP Programme to assess the potential of sensor fusion techniques, for aviation applications demanding stringent performance requirements aiding operations under low visibility conditions. The study assesses the fit and the benefits of this approach to the Positioning Navigation & Timing (PNT) requirement adherence, in particular for the Satellite Navigation.

In addition, Airbus, together with European partners, has won a series of contracts from the European Global Navigation Satellite Systems Agency (GSA) and ESA to extend EGNOS service use for the safe operations of railways. The resulting projects are:

– CLUG (Certifiable Localisation Unit with GNSS): GNSS could prove a game changer for the European railway network by enabling a significant reduction of trackside equipment and by improving localisation performance. This project is performing mission analysis/needs identification and a preliminary feasibility study of an on-board localisation unit.

– GREET (GNSS for the Railway EnvironmEnT) ESA recently awarded Airbus a study for the development of a railway GNSS receiver chain to support the testing and validation of integrity concepts, algorithms, and techniques for receivers in railway environment.

– EGNSS-R (European GNSS for Rail): Rail signaling systems are used to safely control traffic in order to prevent train collisions. The project aims to define a new GNSS augmentation service for improved rail signaling, along with an implementation roadmap.

Mesa Air Group Reports Fourth Quarter, Full-Year 2020 Profit

December 9, 2020 / WIL BALDWIN

Mesa Air Group, Inc. (NASDAQ: MESA) today reported fourth quarter and full-year fiscal 2020 financial and operating results.

Mesa’s Q4 2020 results reflect net income of $11.4 million, or $0.32 per diluted share, compared to net income of $12.2 million, or $0.35 per diluted share for Q4 2019. Mesa Q4 2020 results include, per GAAP, the deferral of $7.8 million of revenue, all of which was billed and paid by American and United during the quarter and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA¹ for Q4 2020 was $44.6 million, compared to $50.8 million in Q4 2019, and Adjusted EBITDAR¹ was $54.2 million for Q4 2020, compared to $61.9 million in Q4 2019. For Q4 2020 revenue was $108.0 million, a reduction of $79.8 million (42%) from $187.8 for Q4 2019 primarily due to the reduced flying as a result of COVID-19. During the quarter Mesa recognized $40.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees.

Operationally, the Company ran a 99.8% controllable completion factor, compared to 99.0% in Q4 2019, and a total completion factor of 98.2%, which primarily includes weather, close-in capacity reductions driven by reduced demand, and other uncontrollable cancellations, compared to 96.9% in Q4 2019.

Full Year

Mesa reported net income of $27.5 million, or $0.78 per diluted share for the 2020 fiscal year, compared to net income of $47.6 million, or $1.36 per diluted share for the 2019 fiscal year. Excluding special items for both periods, adjusted net income¹ was $27.5 million or $0.78 per diluted share for the 2020 fiscal year, compared to $57.5 million or $1.64 per diluted share for the 2019 fiscal year. Mesa fiscal 2020 results include, per GAAP, the deferral of $23.8 million of revenue, all of which was billed and paid by American and United during the year and will be recognized over the remaining terms of the contracts. Mesa’s Adjusted EBITDA¹ was $163.3 million in fiscal year 2020, compared to $208.7 million in fiscal year 2019 and Adjusted EBITDAR was $212.1 million in fiscal year 2020, compared to $260.9 million in fiscal year 2019. For fiscal year 2020, revenue was $545.1 million, a reduction of $178.3 million (25%) from $723.4 million for fiscal year 2019, primarily due to the reduced flying as a result of COVID-19. During the year, Mesa recognized $83.8 million as an offset to wages and salaries related to the previously announced Payroll Support Program Agreement (“PSP”), which required Mesa to retain all of its employees as of April 20, 2020.

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¹ See Reconciliation of non-GAAP financial measures

Fiscal 2020 Q4 Highlights

– EPS of $0.32, Full Year $0.78

– Year-end cash increased by $34.5 million to $99.4 million

Recent Updates

– Amended capacity purchase agreement with American to operate 40 CRJ-900s for a five-year term

– Commenced cargo operations for DHL with two Boeing 737-400F

– Added 10 new E175 aircraft to our United fleet in November and December

– Entered into a $195 million loan under the CARES Act with the U.S. Treasury

F-15QA1 and F-15QA2 Air to Air. Includes Arch Fly-by, St. Louis, MO. MSF20-0028 Series.

Boeing Secures Over $800M in Middle East Training and Support Contracts

November 11, 2020 / WIL BALDWIN

– Qatar Emiri Air Force to receive aircrew and maintenance training support for F-15QA aircraft

– Comprehensive support includes pre-delivery training and maintenance, and in-country services support

Boeing [NYSA: BA] today acknowledged three foreign military sales contracts with the U.S. Air Force for training services and support in the Middle East valued at more than $800 million.

The first previously unannounced contract was awarded in 2019 and will support the Qatar Emiri Air Force (QEAF) with F-15QA program management, maintenance and aircrew training valued at $240 million over a five-year contract period.

Boeing also received a separate not-to-exceed $68 million contract to provide maintenance and logistics support for the QEAF during their pre-delivery training for the F-15QA aircraft, which will commence early next year. The QEAF will send pilots and weapon system operators to the U.S., where the aircrews will learn how to independently operate the F-15QA ahead of receiving their new aircraft. Training will include in-person instruction, simulation events and flying operations and will be held near Boeing’s F-15 production facility in the U.S. through mid-2021.

Following this, Boeing will establish and operate an aircrew and maintenance training center for the QEAF at Al Udeid Air Base, Qatar, through 2024.

A third contract awarded in November and valued at more than $500 million will provide the QEAF with in-country spares and logistics support once the aircraft are delivered to Qatar.

“The tailored training and sustainment delivered by our team, coupled with Boeing’s platform expertise, allows us to deliver a holistic solution to our Qatari customer so they can optimize the full capability of their fleet with high availability rates,” said Tim Buerk, director of Middle East defense services for Boeing. “We look forward to our continued partnership with Qatar and further supporting their mission readiness needs.”

The F-15QA is an advanced variant of the undefeated F-15 aircraft. The Advanced F-15 features next-generation technologies that offer more speed, range and payload than any other fighter in its class. Boeing will deliver 36 F-15QA aircraft to Qatar starting in 2021.

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. 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 Awarded $3.1 Billion in U.S. Navy Cruise Missile Contracts

May 14, 2020 / WIL BALDWIN

The U.S. Navy has awarded Boeing [NYSE: BA] a combined $3.1 billion in contracts for Harpoon and Standoff Land Attack Missile Expanded Response (SLAM ER) weapon systems in support of Foreign Military Sales (FMS). About $2.6 billion of that was contracted today while the remainder had been previously awarded.

“We are pleased to continue our long legacy of partnering with the Navy to build weapons that defend America and its international partners,” said Cindy Gruensfelder, vice president, Boeing Weapons. “These awards will not only extend production of the Harpoon program through 2026, they will also restart the production line for SLAM ER and ensure deliveries through 2028.”

Boeing last delivered the SLAM ER weapon system in 2008. In October 2019, Boeing began construction on a new 35,000 sq. ft. manufacturing facility to support increased production for the Harpoon and SLAM ER programs. Construction is expected to be complete in 2021.

Norwegian Air Could Run Out of Cash Unless Debt Plan Approved

April 27, 2020 / WIL BALDWIN

OSLO (Reuters) – Norwegian Air <NAS.OL> could run out of cash by mid-May unless its proposed financial rescue plan is approved by creditors and shareholders, the budget carrier warned on Monday.

If approved by bondholders, leasing companies and shareholders, the plan may help Norwegian survive the coronavirus outbreak, which has grounded 95% of its fleet, leaving just 7 aircraft in operation.

But the planned debt-to-equity swap will hand majority ownership of 53.1% to the company’s lessors, while bondholders would own 41.7%, leaving current shareholders with just 5.2%, it said.

The move would allow Norwegian to tap government guarantees of 2.7 billion crowns ($255 million), which are dependent on the company reducing its ratio of debt to equity, and which would come on top of 300 million crowns it has already received.

It is “critical to get access to the state aid package by mid-May before the company runs out of cash,” Norwegian said in a presentation to investors.

Rapid growth has made Norwegian Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York and other major U.S. cities, but with the expansion came debts and liabilities of close to $8 billion by the end of 2019.

Last week, the company reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk.

Norwegian’s shares opened 8% lower on Monday and are down 86% year-to-date.

The company aims to gradually emerge from the COVID-19 crisis with both a short-haul and long-haul network in place, and is targeting a return to normal operations in 2022, it said.

The plan requires backing from bondholders in each of four separate votes planned for April 30, from shareholders in an extraordinary general meeting scheduled for May 4, and from leasing firms.

It maintained plans to raise up to 400 million crowns in cash from owners.

(Editing by Jan Harvey)

FILE PHOTO: A Norwegian Air plane is refuelled at Oslo Gardermoen airport

Record $4 Billion Airbus Fine Draws Line Under ‘Pervasive’ Bribery

January 31, 2020 / WIL BALDWIN

FILE PHOTO: FILE PHOTO: The Airbus logo is pictured at Airbus headquarters in Blagnac near Toulouse

PARIS/LONDON/WASHINGTON (Reuters) – Airbus <EADSY> bribed public officials and hid the payments as part of a pattern of worldwide corruption, prosecutors said on Friday as the European planemaker agreed a record $4 billion settlement with France, Britain and the United States.

The disclosures, made public after a nearly four-year investigation spanning sales to more than a dozen overseas markets, came as courts on both sides of the Atlantic formally approved settlements that lift a legal cloud that has hung over Europe’s largest aerospace group for years.

“It was a pervasive and pernicious bribery scheme in various divisions of Airbus SE that went on for a number of years,” U.S. District Judge Thomas Hogan said.

The deal, effectively a corporate plea bargain, means Airbus has avoided criminal prosecution that would have risked it being barred from public contracts in the United States and European Union – a massive blow for a major defence and space supplier.

Prosecutors said individuals could still face criminal charges, however.

Airbus, whose shares closed down 1%, has been investigated by French and British authorities for alleged corruption over jet sales dating back more than a decade. It has also faced U.S. inquiries over suspected violations of U.S. export controls.

“In reaching this agreement today, we are helping Airbus to turn the page definitively” on corrupt past practices, French prosecutor Jean-Francois Bohnert said.

France’s financial prosecutor said the company had also agreed to three years “light compliance monitoring” by the country’s anti-corruption agency.

The U.S. Department of Justice said the deal was the largest ever foreign bribery settlement.

CODE NAME ‘VAN GOGH’

In a packed hearing at London’s Royal Courts of Justice, an Airbus lawyer said the settlements “draw a clear line under the investigation and under the grave historic practices”.

Outlining detailed findings, the UK’s Serious Fraud Office (SFO) said Airbus had hired the wife of a Sri Lankan Airlines executive as its intermediary and misled Britain’s UKEF export credit agency over her name and gender, while paying $2 million to her company. The airline could not be reached for comment.

Click the link below to read the full story!

https://finance.yahoo.com/news/airbus-pay-4-billion-settle-152542295.html

Fiat Chrysler Reaches Tentative Labor Deal with United Auto Workers

December 1, 2019 / WIL BALDWIN

DETROIT (Reuters) – Fiat Chrysler Automobiles NV and the United Auto Workers (UAW) union on Saturday announced a tentative agreement for a four-year labor contract, a boost for the automaker as it works to merge with France’s Groupe PSA.

Italian-American Fiat Chrysler and PSA, the maker of Peugeot and Citroen, last month announced a planned $50 billion merger to create the world’s fourth-largest automaker.

The tentative agreement with Fiat Chrysler, which is subject to ratification by the union members, follows contracts that the UAW already concluded with Ford Motor Co and General Motors Co.

The deal with GM followed a 40-day strike in the United States that virtually shuttered GM’s North American operations and cost the automaker $3 billion.

The UAW on Saturday said the contract with Fiat Chrysler included a commitment from FCA to invest $9 billion, creating 7,900 new jobs over the course of the four-year contract. Of the $9 billion, $4.5 billion was announced earlier this year, to be invested in five plants and creating 6,500 jobs.

Detailed terms of the tentative agreement were not released, but they are expected to echo those under the new contracts with GM and Ford, as the UAW typically uses the first deal as a pattern for the others.

“FCA has been a great American success story thanks to the hard work of our members,” UAW acting President Rory Gamble said in a statement. “We have achieved substantial gains and job security provisions for the fastest growing auto company in the United States.”

Ratification is not a sure thing. Rank-and-file UAW members at FCA in 2015 rejected the first version of a contract. In addition, a lawsuit related to a federal corruption probe could also raise doubts among union members about the terms agreed.

The federal corruption led GM to file a racketeering lawsuit against FCA, alleging that its rival bribed union officials over many years to corrupt the bargaining process and gain advantages, costing GM billions of dollars. FCA has brushed off the lawsuit as groundless.

Under the UAW’s deal with GM, the automaker agreed to invest $9 billion in the United States, including $7.7 billion directly in its plants, and to create or retain 9,000 UAW jobs.

Ford’s contract included commitments to invest more than $6 billion in its U.S. plants and to create or retain more than 8,500 UAW jobs.

The deals with GM and Ford also created a pathway to full-time employment for temporary workers and left healthcare insurance coverage unchanged.

Both automakers also agreed to signing bonuses, with $9,000 for full-time Ford workers and $11,000 for workers at GM.

(Reporting by Nick Carey; Editing by Leslie Adler)

FILE PHOTO: FCA’s Manley and Elkann speaks at the North American International Auto Show in Detroit, Michigan

Ex-British Airways Executive Indicted Over Alleged JFK Airport Bribery Scheme

November 19, 2019 / WIL BALDWIN

NEW YORK, Nov 19 (Reuters) – A former British Airways executive who oversaw the carrier’s operations at New York’s John F. Kennedy International Airport has been indicted for accepting bribes to help a ground handling company win contracts, New York’s attorney general said on Tuesday.

The charges announced by Attorney General Letitia James against Steven Clark, who she said directed British Airways operations at JFK Terminal 7, arose from “Operation Greased Runway,” a probe into contracting and procurement at JFK.

John Kinsella, a former chief executive of Ground Services International (GSI) accused of making improper payments to Clark, was also charged in the case.

Both defendants pleaded not guilty, according to their respective lawyers. British Airways, part of International Consolidated Airlines Group SA, was not charged.

James said Clark received more than $5 million and a secret 5% stake in GSI over several years from Kinsella, in exchange for promoting that company’s services.

According to court papers, payments were concealed from Britain’s flag carrier with fake invoices, and sometimes laundered through companies that Clark or Kinsella created.

James said Clark also received improper sums from another vendor, while Kinsella paid an executive who helped run JFK Terminal 1, which houses several airlines, to win his support.

Clark, 61, of New York, and Kinsella, 59, of Naples, Florida, were each charged with several counts, including bribery and money laundering, and arraigned before a New York state judge in Queens.

“Mr. Clark is innocent of the charges to which he pleaded not guilty, and expects to be vindicated,” Clark’s lawyer Kevin O’Brien said in a phone interview.

Kinsella’s lawyer Brian Legghio said his client was also innocent, looked forward to clearing his name, and had been awarded his JFK contacts on merit and based on his reputation. He said Kinsella sold GSI three years ago.

GSI agreed with James’ predecessor Barbara Underwood last December to a $12.3 million settlement related to the probe.

“Today’s indictment sends a clear massage to airline companies and airport vendors: pay-to-play schemes will not fly in New York,” James said in a statement.

(Reporting by Jonathan Stempel in New York Editing by Tom Brown)

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