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Boeing Out of Minuteman Missile Replacement Competition

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.

In 2017, the Air Force awarded https://www.reuters.com/article/us-boeing-pentagon-gbsd/u-s-air-force-awards-contracts-to-boeing-northrop-for-icbm-replacement-idUSKCN1B12H3 Boeing and Northrop Grumman separate contracts for the early engineering phase of the program.

(Reporting by Mike Stone; editing by Jonathan Oatis, Rosalba O’Brien and Richard Chang)

U.S. Says May Raise Tariffs on EU Products in Aircraft Subsidy Row

WASHINGTON, Dec 2 (Reuters) – The U.S. government on Monday said it would review the possibility of raising tariffs on European Union products and applying tariffs to more products, given what it called lack of progress in resolving a dispute over aircraft subsidies.

The U.S. Trade Representative’s office said Monday’s decision by the World Trade Organization (WTO) affirmed the U.S. position that European Union launch aid to planemaker Airbus continued to harm the U.S. aerospace industry.

“In light of today’s report and the lack of progress in efforts to resolve this dispute, the United States is initiating a process to assess increasing the tariff rates and subjecting additional EU products to the tariffs,” USTR said in a statement. It said it would release more information about the process later this week.

(Reporting by Andrea Shalal; Editing by Lisa Shumaker)

EU hasn’t ended illegal subsidies to Airbus, WTO panel says

Southwest Will Speed Up Inspections of 38 Used 737 Airplanes

WASHINGTON (Reuters) – Southwest Airlines Co <LUV> said Monday it will complete inspections on 38 737 airplanes it acquired from foreign air carriers by Jan. 31 that may not meet all U.S. aviation safety requirements.

The planes are part of 88 pre-owned Boeing <BA> 737 aircraft Southwest bought between 2013 and 2017 from 16 foreign carriers. The speedier checks come after inspections of 39 used planes turned up previously undisclosed repairs and incorrectly completed fixes. Southwest used multiple contractors to conduct the reviews of the planes’ maintenance records when they bought the planes.

“We have a plan in place to inspect the 47 remaining aircraft, nine of which are currently in heavy checks, no later than January 31, 2020 – five months earlier than the original FAA accepted completion date of July 1,” Southwest said in a statement on Monday.

Southwest said its inspections to date “did not stem from any suspected safety concerns with the aircraft.” It added its “continuous assessment of the ongoing inspections has revealed nothing to warrant the expedited timeline” but will meet it nevertheless.

In 2018, Southwest agreed to conduct a complete physical inspection on each of these pre-owned aircraft over a two-year period after a Federal Aviation Administration (FAA) safety inspector in May 2018 discovered discrepancies in records for some of 88 aircraft.

Since then, Southwest said it has completed the nose-to-tail inspection of 41 aircraft without any findings that suggested an “adverse impact on continued safe operation.”

An Oct. 24 memo from H. Clayton Foushee, director of the FAA Audit and Evaluation Office, made public on Monday said the Southwest inspections turned up at least 30 previously unknown repairs and 42 major repairs that were found “not to meet FAA airworthiness requirements.” Some required “immediate corrective action to bring the aircraft back into compliance.”

The memo added “the data collected to date would indicate that a majority of” the planes to be inspected do not meet FAA airworthiness requirements.

The U.S. Senate Commerce Committee noted on Monday that the 2018 discovery prompted a full records review by Southwest Airlines of all 88 aircraft that found 360 major repairs previously unknown to the airline because they were not disclosed in the contractors’ initial review.

Foushee’s memo said Southwest grounded 34 planes in November 2018 for inspections. The committee said as a result some planes were grounded “for immediate maintenance to bring them into regulatory compliance as a result of these newly discovered prior major repairs.”

The FAA then sent an Oct. 29 letter to Southwest seeking additional information about the uninspected planes and questioned whether they suffered specific damage items. It also raised concerns about Southwest’s “slow pace in completing the evaluation of aircraft.”

Senate Commerce Committee Chairman Roger Wicker said in an Oct. 30 letter to the FAA that its concerns about Southwest’s used planes correspond “to concerns that have been brought to my attention by whistleblowers as part of my investigation into aviation safety.”

The committee said the FAA allowed Southwest to continue to operate these aircraft and as a result “Southwest Airlines appears to have operated aircraft in unknown airworthiness conditions for thousands of flights.”

The FAA said Monday that after receiving Southwest’s response it determined the airline has “met the requirements for immediate inspection and risk assessments on these aircraft.”

The FAA added it “is requiring more frequent updates on the progress of completing all the requirements.”

(Reporting by David Shepardson; additional reporting by Tracy Rucinski in Chicago; editing by Jonathan Oatis)

FILE PHOTO: A number of grounded Southwest Airlines Boeing 737 MAX 8 aircraft are shown parked at Victorville Airport in Victorville, California

Pentagon And Lockheed Martin Reach Agreement Reducing F-35A Cost By 12.8 Percent

U.S. Air Force F-35A Lightning II Joint Strike Fighters from the 58th Fighter Squadron, 33rd Fighter Wing, Eglin AFB, Fla. perform an aerial refueling mission with a KC-135 Stratotanker from the 336th Air Refueling Squadron from March ARB, Calif., May 14, 2013 off the coast of Northwest Florida. The 33rd Fighter Wing is a joint graduate flying and maintenance training wing that trains Air Force, Marine, Navy and international partner operators and maintainers of the F-35 Lightning II. (U.S. Air Force photo by Master Sgt. Donald R. Allen/Released)

FORT WORTH, Texas, Oct. 29, 2019 /PRNewswire/ — The F-35 Joint Program Office and Lockheed Martin (NYSE: LMT) finalized a $34 billion agreement for the production and delivery of 478 F-35s at the lowest aircraft price during the history of the Program. This contract includes all U.S., International Partners and Foreign Military Sales aircraft in Lots 12, 13 and 14. 

In the agreement, the F-35 Enterprise meets and exceeds its long-stated cost reduction targets for each variant – and the F-35A unit price, including aircraft and engine, is now below $80 million in both Lot 13 and Lot 14, the F-35A unit cost represents an estimated overall 12.8 percent reduction from Lot 11 costs for the conventional landing variant, and an average of 12.7 percent savings across all three variants from Lot 11 to 14.

“Driving down cost is critical to the success of this program. I am excited that the F-35 Joint Program Office and Lockheed Martin have agreed on this landmark three-lot deal. This agreement achieves an average 12.7 percent cost reduction across all three variants and gets us below $80 million for a USAF F-35A by Lot 13 – one lot earlier than planned,” said Air Force Lt. Gen. Eric Fick, F-35 Program Executive Officer. “This $34 billion agreement is a truly historic milestone for the F-35 Enterprise.” 

The agreement includes 291 aircraft for the U.S. Services, 127 for F-35 International Partners, and 60 for F-35 Foreign Military Sales customers. Price details include:

“With smart acquisition strategies, strong government-industry partnership and a relentless focus on quality and cost reduction, the F-35 Enterprise has successfully reduced procurement costs of the 5th Generation F-35 to equal or less than 4th Generation legacy aircraft,” said Greg Ulmer, Lockheed Martin, F-35 Program vice president and general manager. “With the F-35A unit cost now below $80 millionin Lot 13, we were able to exceed our long-standing cost reduction commitment one year earlier than planned.”

The sub $80 million unit recurring flyaway cost for an F-35 represents an integrated acquisition price for the 5th Generation Weapon System. With embedded sensors and targeting pods, this F-35 unit price includes items that add additional procurement and sustainment costs to legacy 4th Generation aircraft.

Program Progress

With more than 450 aircraft operating from 19 bases around the globe, the F-35 is playing a critical role in today’s global security environment. More than 910 pilots and 8,350 maintainers have been trained, and the F-35 fleet has surpassed more than 220,000 cumulative flight hours. Eight nations have F-35s operating from a base on their home soil and seven Services have declared Initial Operating Capability. 

In addition to strengthening global security and partnerships, the F-35 provides economic stability to the U.S. and International Partners by creating jobs, commerce and security, and contributing to the global trade balance. The F-35 is built by thousands of men and women in America and around the world. With more than 1,400 suppliers in 46 states and Puerto Rico, the F-35 Program supports more than 220,000 direct and indirect jobs in the U.S. alone. The Program also includes more than 100 international suppliers, creating or sustaining thousands of jobs.

British Airways Suspends Flights to Cairo for Seven Days

CAIRO, July 20 (Reuters) – British Airways and Lufthansa abruptly suspended flights to Cairo from Saturday over security concerns, but giving no details about what may have prompted the move.

“We constantly review our security arrangements at all our airports around the world, and have suspended flights to Cairo for seven days as a precaution to allow for further assessment,” British Airways said in a statement.

Lufthansa later said it had cancelled its flights to Cairo on Saturday from Munich and Frankfurt and will resume its flights on Sunday

British Airways, a unit of IAG, also said that it would never operate an aircraft unless it was safe to do so. When asked for more details about why flights had been suspended and what security arrangements the airline was reviewing, a spokeswoman responded: “We never discuss matters of security.”

Three Egyptian airport security sources told Reuters that British staff had been checking security at Cairo airport on Wednesday and Thursday. They gave no further details.

The British Foreign Office updated its travel advisory on Saturday to add a reference to the British Airways’ suspension, advising travellers affected to contact the airline.

Egypt’s Ministry of Civil Aviation said in a statement late on Saturday that it had contacted the British Embassy in Cairo which had confirmed that the decision to suspend the flights was not issued by Britain’s transport or foreign ministries.

The Egyptian ministry added that it will add more flights from Cairo to London starting on Sunday “to facilitate transporting passengers during this period.”

The British government has long advised against all but essential travel by air to and from the Egyptian resort of Sharm el-Sheikh, where a Russian passenger jet was bombed in 2015, but has not issued similar warnings against air travel to and from Cairo.

“There’s a heightened risk of terrorism against aviation. Additional security measures are in place for flights departing from Egypt to the UK,” the British advisory says.

Tourism, a key source of foreign revenue for Egypt, has been recovering after tourist numbers dropped in the wake of a 2011 uprising and the 2015 bombing of the Russian jet, which killed all 224 people on board shortly after takeoff.

That attack, which was claimed by Islamic State, prompted Russia to halt all flights to Egypt for several years and a number of countries including Britain to cease flights to Sharm el Sheikh, which have yet to resume.

(Reporting by Lena Masri and Amina Ismail; editing by Peter Graff, Diane Craft and G Crosse)

Dassault Aviation Starts Office Construction at Mérignac Plant

Mérignac, France, 14 May 2019 – Today, Dassault Aviation officially launched the construction of an office building on its site in Mérignac, France, as a step of its “Leading our Future” transformation plan. The building will accommodate design, development and after-sales support teams for the firm’s civil and defense activities.

“This ambitious project reflects our aim to bring together some of the teams who design and support our aircraft and those responsible for producing them. It fosters collaborative working as part of the rollout of our extended design office concept. The principle is to integrate even more and whenever required, from the design phase, all the trades involved in the product life cycle. This building will not just house offices, it will be one of the means to reframe the interactions between Mérignac and Saint-Cloud. We are expecting better links between technical competence, product knowledge and customer services”, said Eric Trappier, Chairman and CEO of Dassault Aviation. “It is one of the focuses of our transformation plan which, without altering the DNA that has underpinned our century-long success, aims to make our company more flexible and more competitive to respond to the technology challenges ahead and the changes occurring in the world around us.”

The new building will offer 25,800 sq. m of surface area over four levels with a total capacity of 1,500 workstations including 24 modular collaborative work spaces and nine project offices. The building will also provide VIP rooms for our civil and military customers, a Falcon command center, rooms for aircraft system test benches, a Virtual Reality Center, an Immersive Reality Center and an auditorium.

The highest environmental standards will be applied including smart lighting and energy management, solar panels (4,000 sq. m), reinforced insulation, green roofs, and a heat recovery system.

Presided over by Eric Trappier, alongside Valérie Guillemet, Mérignac Site Manager, the “groundbreaking” ceremony was attended by many local elected representatives, particularly the President of the Nouvelle-Aquitaine Region Alain Rousset, the President of Bordeaux Métropole Patrick Bobet, the Mayor of Mérignac Alain Anziani and the Mayor of Bordeaux Nicolas Florian. Representatives of official services, as well as the region’s aviation ecosystem and the media were also present at the event.

Work is scheduled for completion at the end of 2020, and the building should be commissioned in 2021.

About Dassault Aviation

With over 10,000 military and civil aircraft delivered in more than 90 countries over the last century, Dassault Aviation has built up expertise recognized worldwide in the design, development, sale and support of all types of aircraft, ranging from the Rafale fighter, to the high-end Falcon family of business jets and military drones. In 2018, Dassault Aviation reported revenues of €5.1 billion. The company has 11,500 employees.

Twitter : @Dassault_OnAir

Trump Says Boeing Should ‘Rebrand’ Grounded 737 MAX Jet

FILE PHOTO: U.S. President Donald Trump speaks at the debut of the Boeing South Carolina Boeing 787-10 Dreamliner in North Charleston, South Carolina, U.S., February 17, 2017. REUTERS/Kevin Lamarque

WASHINGTON (Reuters) – U.S. President Donald Trump on Monday urged Boeing Co to fix and “rebrand” its 737 MAX jetliner following two fatal crashes, as regulators worldwide continue to work with the planemaker to review its grounded best-selling aircraft.

The Federal Aviation Administration has been meeting major airlines and convened a joint review with aviation regulators from other countries, while federal prosecutors, the U.S. Department of Transportation inspector general’s office and a blue-ribbon panel are reviewing the plane’s certification.

In an early-morning post on Twitter, Trump, who owned the Trump Shuttle airline from 1989 to 1992 and is an aviation enthusiast, weighed in with his own advice.

“What do I know about branding, maybe nothing (but I did become President!), but if I were Boeing, I would FIX the Boeing 737 MAX, add some additional great features, & REBRAND the plane with a new name. No product has suffered like this one. But again, what the hell do I know?” Trump tweeted.

The plane’s grounding has also threatened the U.S. summer travel season, with some airlines removing the 737 from their schedules through August.

Trump issued the tweet as Boeing tries to restore trust in its fastest-selling jet, the main source of profits and cash at the Chicago-based planemaker which has won some 5,000 orders or around seven years of production for the aircraft.

Chief Executive Dennis Muilenburg has apologised on behalf of Boeing for lives lost in two recent accidents and promised that it would address the risk that flight software meant to prevent the plane stalling could be activated by wrong data.

Boeing has also held dozens of briefings and simulator sessions for airline executives and pilots and held worldwide meetings with airline branding and communications staff.

Pilots are expected to play a major role in regaining public confidence in the aircraft, but Trump’s tweet marks the first time the brand underpinning Boeing profits in coming years has been thrown into question at a high level.

Brand Finance, a UK-based consultancy that tracks the value of global brands, rejected the idea that Boeing should abandon the MAX brand but said its corporate reputation was in the firing line.

“This has without a doubt damaged Boeing’s reputation and we foresee a dent to the (Boeing) brand’s value at over $12 billion (£9 billion),” Chief Executive David Haigh said by email when asked about Trump’s comments.

“This is a temporary blip in the long run for Boeing,” he said, adding Toyota and others had recovered from similar high-profile crises without a drastic rebranding exercise.

Brand Finance had previously estimated the damage to the value of Boeing’s reputation at $7.5 billion immediately after the March 10 crash of an Ethiopian Airlines jetliner, the second fatal accident involving the 737 MAX in five months.

Boeing has the world’s most valuable aerospace brand, having seen the value of its overall corporate image rise by 61 percent to $32 billion in 2018, according to the same branding firm.

(Reporting by Susan Heavey, Tim Hepher; Editing by Jeffrey Benkoe and Toby Chopra)

Cargo Jet with 3 on board crashes near Houston airport

NEW YORK, Feb 23 (Reuters) – A Boeing 767 cargo jetliner with three people on board crashed into a bay near Houston’s George Bush Intercontinental Airport on Saturday, police and officials said.

Atlas Air Flight 3591 was en route to Houston from Miami when radar and radio contact with the plane was lost about 30 miles (48 km) southeast of the airport, the Federal Aviation Administration said in a statement.

The National Transportation Safety Board (NTSB) will be in charge of the investigation, the statement said, and FAA investigators were on their way to the crash site.

The Chambers County Sheriff’s office said the plane had been located in Jack’s Pocket, at the north end of Trinity Bay near the small city of Anahuac, according to a Facebook post by the sheriff’s office.

Ed Gonzalez, the sheriff of neighboring Harris County, which includes Houston, said on Twitter his office was sending personnel to help with the rescue efforts.

Boeing said on Twitter it was aware of reports of an accident involving a 767 in Texas and was gathering more information.

Atlas Air said there were three people on board the aircraft. “Those people and their family members are our top priority at this time,” the airline said in a statement.

The company, a subsidiary of Atlas Air Worldwide has been operating Boeing 767 freighters on behalf of Amazon following a 2016 deal.

“Our thoughts and prayers are with the flight crew, their families and friends along with the entire team at Atlas Air during this terrible tragedy,” Dave Clark, senior vice president of worldwide operations at Amazon, said in a statement.

(Reporting by Maria Caspani in New York Editing by Paul Simao)

Bell Boeing Awarded $144 Million for V-22 Support

Contract adds support for U.S. Navy CMV-22B variant to existing U.S. Air Force and U.S. Marine Corps customers

Contract expands and advances work that Bell Boeing has performed since 2008

PHILADELPHIA, Jan. 18, 2019 – The Bell Boeing Joint Program Office has been awarded an estimated $143,863,184 firm-fixed-price requirements contract for performance-based logistics and engineering support for the V-22 platform. This is an 11-month base contract with four one-year option periods. Locations of performance are Texas and Pennsylvania for V-22 aircraft belonging to the U.S. Navy, U.S. Air Force and U.S. Marine Corps. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania.

“As one of the most in-demand assets for the U.S. military, the V-22 needs a support team that understands the technical aspects of the aircraft as well as customers’ operational needs,” said Pat Walsh, retired Admiral and Boeing vice president for U.S. Navy and Marine Corps Services. “Bell Boeing is excited to bring our OEM expertise to the V-22 fleet and deliver solutions that help ensure the aircraft are ready for any mission.”

In July, Bell Boeing received a $4 billion contract that included the manufacture and delivery of 39 CMV-22B aircraft for the Navy; 14 MV-22B aircraft for the Marine Corps; and one CV-22B for the Air Force.

Under this performance-based logistics (PBL) contract, which expands on work done since 2008 and now adds support for the Navy’s CMV-22B variant, Bell Boeing will focus on improving aircraft maintainability and mission readiness for the Navy, Air Force and Marine Corps V-22 fleets. The team’s responsibilities include site activation, maintenance planning, training and trainer support, support equipment, and dedicated field personnel for all V-22 squadrons around the globe. Bell Boeing incorporates data analytics into maintenance efforts, yielding innovative approaches such as predictive and condition-based maintenance to improve aircraft availability and readiness.

”The Bell Boeing team is dedicated to providing the safest and most reliable aircraft to the warfighter,” said Chris Gehler, Bell Vice President for the V-22 Program. “We will continue to produce innovative solutions and deliver technical expertise, training, and maintenance to enhance readiness.”

Operating as one of Boeing’s three business units, Global Services is headquartered in the Dallas area. For more information, visit www.boeing.com/services.

LA Airplane Hangar Becomes Google Spruce Goose Office

American studio ZGF Architects has transformed the interior of a 1940s hangar in Los Angeles into a Google office, featuring open workspaces, elevated walkways and exposed timber beams.

The office, called Google Spruce Goose, is located in Playa Vista – a neighbourhood near LAX airport. The project entailed the overhaul of a large timber-framed hangar that was constructed in 1943 by Howard Hughes, the famed businessman, film producer and pilot.

Measuring 750 feet (229 metres) in length, the facility was built for the construction of the H-4 Hercules airplane, nicknamed the Spruce Goose due to its massive size and wooden structure.

Click the link below for the full story and pictures!

Google Spruce Goose Office

The original Spruce Goose now resides in the Evergreen Aviation & Space Museum in McMinnville, Oregon.

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