NEW YORK (Reuters) – Mitsubishi Heavy Industries Ltd <MHVYF> is confident that it has the technical and production know-how to build high-tech wings for Airbus SE <EADSY> jetliners, the chief executive of the Japanese conglomerate said on Wednesday.
MHI developed sophisticated production processes at its facility in Nagoya in the process of building wings for the Boeing Co <BA> 787 Dreamliner, Chief Executive Seiji Izumisawa said in an interview.
“We have accumulated expertise in producing aerostructures as a tier 1 supplier, so if the opportunity does present itself we will certainly be willing to consider it,” he said.
It is not yet clear whether Airbus plans to outsource wings on future jets, such as its next-generation single-aisle aircraft, which could come out in about a decade.
Such future work would be important to MHI in part because of Boeing’s decision to bring wing production back in-house on its latest jet, the 777X.
“We do have the capability to produce some pretty complicated components,” said Izumisawa, who said he was involved in developing the 787 wings.
(Reporting by Alwyn Scott; Editing by Sonya Hepinstall)
FILE PHOTO: The logo of Mitsubishi Heavy Industries is seen at the company’s Sagamihara plant in Sagamihara, Japan
Supply chain deals include Landing Gear Exchange and Quick Engine Change kit solutions
Companies also establish agreement to add regional MRO provider to Boeing’s growing global network
DUBAI, United Arab Emirates, Nov. 17, 2019 — Boeing [NYSE:BA] and EGYPTAIR MAINTENANCE & ENGINEERING (EGME) today announced agreements that will approve the Cairo-based MRO as Boeing’s first maintenance supplier in Africa and the Middle East region. The agreement enables EGME to provide aircraft, engines and component maintenance services and solutions to Boeing customers.
EGME will also receive landing gear exchange and overhaul support through the Boeing Landing Gear Exchange Program. The program provides flexible exchange solutions that allow customers to quickly repair and replace serviceable landing gear in hours.
Boeing will also supply parts for a Quick Engine Change kit. The kit includes hardware and components used to efficiently build up a spare engine to service-ready condition, lowering the maintenance time required to replace an engine and return aircraft to service.
“EGYPTAIR is optimizing operations for our growing fleet, which includes a sixth 787-9 Dreamliner aircraft, to always deliver a better experience for our customers,” said Ahmed Adel, chairman and CEO of EGYPTAIR Holding Company. “We are able to leverage the strength of a global supply chain network and increase efficiency by continuing to partner with Boeing.”
EGYPTAIR’s maintenance, repair and overhaul (MRO) subsidiary, EGYPTAIR Maintenance & Engineering (EGME), also signed a supplier agreement that will allow EGME to support Boeing’s customers with parts provisioning, engineering support and line maintenance.
“EGYPTAIR Maintenance & Engineering brings strong technical expertise with locations across the Middle East and Africa that enable us to better serve our customers in the region,” said Ted Colbert, president and CEO of Boeing Global Services. “Our customers rely on us to keep their airplanes in revenue service. With our global supplier network, which now includes EGME, we help make sure that our customers and their passengers fly Boeing airplanes with confidence every single day.”
“It’s another milestone in EGME’s strategy of growth in the global market as a leading MRO in Africa and the Middle East region,” said Mostafa Ali El-Din, chairman and CEO of EGME. “We are pleased to be part of Boeing’s global network, which reflects a great trust in our capabilities and personnel experience. EGME will utilize its wide-scope capabilities to provide the best technical services to customers who aspire for well-maintained fleet in service.”
In Boeing’s Services Market Outlook, the company forecasts rapid growth in the Middle East region’s commercial and government aviation services market, doubling the growth rate in North America.
– Eleven-year award builds on more than a decade of A-10 support
PLANO, Texas, Aug. 21, 2019 /PRNewswire/ — Boeing (NYSE: BA) will continue its legacy of A-10 Thunderbolt II sustainment work under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract award from the U.S. Air Force (USAF), with a maximum ceiling value of $999 million.
Under the contract, which was competitively awarded, Boeing will be responsible for managing the production of a maximum of 112 wing sets and spare kits. The USAF ordered 27 wing sets immediately at contract award.
“Boeing is honored to be selected to continue as the A-10 Thunderbolt II wing kit contractor,” said Pam Valdez, vice president of Air Force Services for Boeing Global Services. “Our established supply base, experience with the A-10 structures, and our in-depth knowledge of the U.S. Air Force’s requirements will help us deliver high-quality wings to meet the customer’s critical need.”
Boeing will team with Korean Aerospace Industries and other key suppliers to deliver the first wing sets to Hill Air Force Base in Ogden, Utah.
Under a previous contract, Boeing delivered 173 enhanced wing assemblies.
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.
PROVIDENCE, R.I.–(BUSINESS WIRE)– Textron Inc. (NYSE: TXT) today announced that it is reviewing strategic alternatives for its Kautex business unit, which produces fuel systems and other functional components. Textron plans to consider a range of options, including a sale, tax-free spin-off or other transaction. Kautex operates over 30 plants in 14 countries and generated over $2.3 billion in revenue in 2018.
Kautex, headquartered in Bonn, Germany, is a leading developer and manufacturer of blow-molded plastic fuel systems and advanced fuel systems for cars and light trucks, including pressurized fuel tanks for hybrid applications. The unit also develops and manufactures camera/sensor cleaning solutions for automobiles, selective catalytic reduction systems used to reduce emissions from diesel engines as well as produces cast iron engine camshafts, crankshafts and other engine components.
“Kautex is a leading Tier One supplier to global OEMs. It has a long history of product innovation, world-class operations and strong financial performance,” said Scott C. Donnelly, Textron Chairman and Chief Executive Officer. “We are exploring strategic alternatives to see how we can position Kautex to best serve its customers for ongoing success while simultaneously unlocking potential value for our shareholders.”
No decision has been made and there can be no assurance that the process will result in any transaction being announced or completed in the future. The Company has not set a definitive timetable for completion of its review of strategic alternatives and does not intend to make any further announcements related to its review unless and until its Board of Directors has approved a specific transaction or the Company otherwise determines that further disclosure is appropriate.
Textron has retained Goldman Sachs & Co. LLC as financial advisor to assist in its review.
About Textron Inc.
Textron Inc. is a multi-industry company that leverages its global network of aircraft, defense, industrial and finance businesses to provide customers with innovative solutions and services. Textron is known around the world for its powerful brands such as Bell, Cessna, Beechcraft, Hawker, Jacobsen, Kautex, Lycoming, E-Z-GO, Arctic Cat, Textron Systems, and TRU Simulation + Training. For more information visit: www.textron.com
EL SEGUNDO, Calif., July 11, 2019 /PRNewswire/ — Raytheon (RTN) was selected by the Boeing Company as radar supplier for the B-52 bomber radar modernization program. Under the contract, Raytheon will design, develop, produce and sustain active electronically scanned array radar systems for the entire U.S. Air Force B-52 fleet. The advanced radar upgrade will ensure the aircraft remains mission ready through 2050 and beyond. Low rate initial production is scheduled to begin in 2024.
With an AESA radar on board, the B-52 will gain improved navigation reliability to support nuclear and conventional missions. Raytheon’s B-52 radar is based on AESA technologies developed from the APG-79/APG-82 radar family.
“When it comes to years spent flying in support of our nation’s defense,” said Eric Ditmars, vice president of Raytheon Secure Sensor Solutions. “Our new AESA radars give aircrews the eyes they need to achieve their mission for the duration of the B-52’s service life.”
The B-52 will also benefit from improved mapping and detection range and an increase in the number of targets it can simultaneously engage. Along with improved capabilities that help crews see further and more accurately, Raytheon’s AESA radar offers greater reliability than the current system because it has no moving parts and uses modern operating software.
About Raytheon Raytheon Company, with 2018 sales of $27 billion and 67,000 employees, is a technology and innovation leader specializing in defense, civil government and cybersecurity solutions. With a history of innovation spanning 97 years, Raytheon provides state-of-the-art electronics, mission systems integration, C5I™ products and services, sensing, effects and mission support for customers in more than 80 countries. Raytheon is headquartered in Waltham, Massachusetts.
(Reuters) – Canada’s WestJet Airlines Ltd said on Monday it will be acquired by private equity firm Onex Corp in an all-cash deal for C$3.53 billion ($2.63 billion).
Including debt, the deal is valued at about C$5 billion.
As part of the deal, WestJet shareholders will receive C$31 for each share held, representing an about 67% premium to its closing price on Friday.
The investment will be led by Onex Partners, Onex’s private equity platform focused on larger investment opportunities and WestJet’s board has recommended that its shareholders vote in favor of the deal.
The private equity fund has a history of investing in aerospace, having previously held a major stake in Boeing supplier Spirit Aerosystems.
The deal is expected to close in the latter part of this year or early next year, the company said.
CIBC Capital Markets and B of A Merrill Lynch were the financial advisers to WestJet, while Barclays, Morgan Stanley and RBC Capital Markets advised Onex.
(Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur)
PARIS (Reuters) – Airbus on Thursday declined to say whether it was interested in buying Bombardier’s Belfast plant after the Canadian firm put it up for sale, but described the Northern Ireland facility as a “key supplier”.
An Airbus spokesman noted the plant makes wings for the A220, formerly known as the CSeries, which Airbus bought from Bombardier last year, and some engine casings for the Airbus A320 family.
Industry sources say the plant uses new technology for carbon fibre wings that could interest Airbus for a future A320 replacement and other long-term projects.
Bombardier’s sale of its Belfast wing and structure-making operation, the largest high-tech manufacturer in Northern Ireland, has stunned workers. They have called on the British government to retain jobs, with the plant employing 3,600 people.
(Reporting by Tim Hepher; Editing by Matthias Blamont)
(Reuters) – Boeing Co’s largest supplier Spirit AeroSystems Holdings Inc reported strong first-quarter results on Wednesday, while following the planemaker in suspending its full-year outlook in the face of the global grounding of 737 MAX jets.
The crisis with Boeing’s most popular aircraft has thrown into doubt orders for a raft of parts makers who have been investing heavily to meet record-breaking demand from the world’s biggest planemaker over the past two years.
Spirit, which makes fuselage, structural engine components and wing parts for the MAX, did a deal with Boeing last month to stick to its current parts delivery schedules for now, and its profits in the first quarter were up 30 percent, according to Wednesday’s quarterly results.
Boeing however has announced cutbacks in its monthly production of MAX jets to 42 from 52 and while it says it is nearing certification for a software fix for the jet, airlines are assuming the planes will not be back in the air before August.
Spirit said with the uncertainty around MAX production it could not stand by its previous full-year outlook which had factored production for MAX jets rising to 57 units per month in June.
“As we now expect to remain at 52 aircraft per month for some period of time, (prior) guidance does not reflect our current outlook,” Spirit Chief Executive Officer Tom Gentile said, adding he was waiting for more clarity from Boeing on MAX’s return to service.
MAX’s other major supplier General Electric Co, which makes engines with Safran SA of France, on Tuesday stuck to its full-year forecasts, while highlighting risk due to MAX’s reduced production.
Another MAX supplier United Technologies Corp last month included an up to 10 cents per share impact in its full-year profit outlook from the groundings of the jet, assuming Boeing produced at 42 aircraft per month for the rest of the year.
Spirit, whose shares are down about 10 percent since the fatal crash of the Ethiopian Airlines’ jet on March 10, rose as much as 3.5 percent to $89.96 in morning trade.
“Given that (Spirit’s) shares have already notably sold off, we think much of this … has been discounted into the price,” Vertical Research Partners Krishna Sinha said.
The company said it has taken actions including deferring capital investments and pausing hiring and share repurchases to mitigate the financial impact of the MAX production change.
On an adjusted basis, Spirit earned $1.68 per share, beating analysts’ average estimate of $1.64 per share, according to IBES data from Refinitiv.
Total revenue rose 13.4 percent to $1.97 billion (£1.51 billion), beating estimates of $1.93 billion.
(Reporting by Ankit Ajmera in Bengaluru; Editing by Shounak Dasgupta)
