Tag: reduction (Page 5 of 5)

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

November 2, 2019 / WIL BALDWIN

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 5^th 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 4^th 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 to Become First UK Airline to Offset Carbon Emissions on Flights

October 11, 2019 / WIL BALDWIN

Airline announces plan to offset carbon emissions for all UK domestic flights from 2020
British Airways to invest in verified carbon reduction projects around the world
From 2020, British Airways’ carbon emissions on international flights will be capped through the United Nations’ carbon offsetting scheme
Announcement comes as parent company International Airlines Group (IAG) announces commitment to achieving net zero carbon emissions by 2050

From January 2020, British Airways will become the first UK airline to offset carbon emissions on all its flights within the UK.

All customers flying within the UK next year on flights operated by British Airways will have the carbon emissions from their flights offset by the airline and invested in carbon reduction projects around the world*. These quality assured projects will include renewable energy, protection of rainforests and reforestation programmes.

The airline operates up to 75 flights a day between London and 10 UK cities, including Manchester, Leeds, Newcastle, Isle of Man, Edinburgh, Glasgow, Aberdeen, Belfast City, Inverness and Jersey. British Airways’ domestic emissions total around 400,000 tonnes of C02 a year.

Today’s announcement comes as British Airways’ parent company, International Airlines Group (IAG), became the first airline group worldwide to commit to achieving net zero carbon emissions by 2050, contributing to both the UK Government’s commitment to a net zero carbon economy by 2050 and the United Nations’ objective to limit global warming to 1.5 degrees. IAG’s emissions’ goal will be achieved through numerous environmental initiatives, including investing more than US$400m in the development of sustainable aviation fuels over the next 20 years.

Alex Cruz, British Airways’ Chairman and Chief Executive, said: “British Airways is determined to play its part in reducing aviation’s CO2 emissions. To solve such a multi-faceted issue requires a multi-faceted response and this initiative further demonstrates our commitment to a sustainable future. It also follows our announcement to partner with renewable fuels company, Velocys, to build a facility which converts household and commercial waste into renewable sustainable jet fuel to power our fleet.”

While customers on UK domestic flights will not need to offset their emissions, those travelling further afield can also reduce their impact on the environment by using British Airways’ carbon offsetting tool. The carbon tool enables customers to calculate their emissions and then invest in carbon reduction projects including high quality forestry and renewable energy projects in Peru, Sudan and Cambodia**.

Using the tool, which can be accessed on https://www.pureleapfrog.org/ba/carbon_zero, a customer will pay around £1 to offset a return flight from London to Madrid, travelling in economy, while from London to New York in business class will cost around £15.***

Notes to Editors

* British Airways is investing in Verified Carbon Standard projects.

**British Airways’ offset scheme is operated through the airline’s partnership with not-for-profit organisation Pure Leapfrog. For more information on the carbon reduction projects, visit: https://www.pureleapfrog.org/ba

***While customers travelling on domestic flights’ carbon emissions are offset for them, customers flying outside of the UK can choose to pay to offset their emissions. Examples of pricing are shown below:

Journey	Cost to offset
London to Madrid (economy)	£ 1
London to New York (economy)	£ 5
London to New York (business)	£ 15
London to Los Angeles (economy)	£ 8
London to Los Angeles (business)	£ 24
London to Hong Kong (business)	£ 26

Customers can find a link to the carbon calculator at https://www.pureleapfrog.org/ba/carbon_zero

Ryanair German Pilots Vote (99%) For 4 Year Collective Labour Agreement

October 3, 2019 / WIL BALDWIN

Ryanair today (02 Oct) confirmed that its pilots based in Germany have voted by a majority of 99% in favour of a 4 year Collective Labour Agreement (VTV), to cover all Ryanair’s directly employed pilots in Germany until March 2023.

The agreement, negotiated between Ryanair and the pilot union VC, will deliver a new pay structure along with a fixed 5/4 roster. Ryanair and VC have also agreed a Social Plan to govern German base closures or reductions.

Air France Takes Delivery of its First A350 XWB

September 28, 2019 / WIL BALDWIN

Air France has taken delivery of its first A350-900, the world’s most efficient all new design wide-body aircraft. The first jet out of a total order of 28 was handed over to Anne Rigail, Air France Chief Executive Officer and Benjamin Smith, Air France-KLM Group Chief Executive Officer, by Airbus Chief Commercial Officer Christian Scherer during a ceremony held in Toulouse, France.

Air France will deploy the A350-900 fleet on its transatlantic and Asia routes. The Xtra WideBody aircraft features a comfortable three-class layout with 324 seats including 34 full-flat business, 24 premium economy and 266 economy class seats. Fully in line with Air France’s commitment to the environment, the all-new A350-900 will provide a 25% reduction in fuel burn and CO₂ emissions. Additionally, the aircraft’s delivery flight from Toulouse to Paris will be powered with a blend of conventional and synthetic biofuel.

Air France operates an Airbus fleet of 143 aircraft. It includes 114 single-aisle and 29 wide-body planes. The airline recently opted to purchase Airbus’ newest aircraft family member, the A220, which will join the fleet over the next years.

The A350 XWB offers by design unrivalled operational flexibility and efficiency for all market segments – up to ultra-long haul (17,900km). Its Airspace by Airbus cabin is the quietest of any twin-aisle aircraft and offers passengers and crews the most modern in-flight flying experience. The aircraft features the latest aerodynamic design, a carbon fibre fuselage and wings, plus new fuel-efficient Rolls-Royce Trent XWB engines. Together, these latest technologies result in 25% lower operating costs, as well as 25% reduction in fuel burn and CO₂ emissions compared with previous-generation competing aircraft – demonstrating Airbus’ commitment to minimise its environmental impact while remaining at the cutting edge of air travel.

At the end of August 2019, the A350 XWB Family had received 913 firm orders from 51 customers worldwide, making it one of the most successful wide-body aircraft ever.

Textron Reviewing Strategic Alternatives for Kautex

August 5, 2019 / WIL BALDWIN

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

Pentagon Gets 8.8% Discount in $34 billion F-35 Jet Deal

June 10, 2019 / WIL BALDWIN

WASHINGTON (Reuters) – The U.S. Department of Defense has a “handshake” agreement with Lockheed Martin Co to cut 8.8 percent from the price of its latest order of F-35A fighter jet, shaving a year from the time frame in which each aircraft will cost less than $80 million, a Pentagon official said on Monday.

The Pentagon said over three years the agreement will be worth $34 billion for 478 F-35 fighter jets. It is preliminary and a final deal is expected to be sealed in August for the 12th batch of jets, one of the most expensive aircraft ever produced.

The preliminary agreement details the first year, and lays out agreed upon options for two additional years. The options are there because official purchases cannot be made until the U.S. Congress approves an annual budget for those years.

This year’s agreement will lower the cost of each F-35A, the most common version of the aircraft, to $81.35 million, Under Secretary of Defense Ellen Lord said, down from $89.2 million under a deal inked in August 2018.

Under the options covering the second and third years of the purchase, the price of each jet will drop below $80 million, Lord said. In those later years production would be around 160 jets per year.

The F-35 program has long aimed at growing the fleet to more than 3,000 jets and bringing the unit price of the F-35A below $80 million through efficiencies gained by ordering larger quantifies.

“I am proud to state that this agreement has achieved an estimated 8.8% savings from Lot 11 to Lot 12 F-35A’s, and an estimated average of 15%” reduction across all variants from Lot 11 to Lot 14, Lord said in the statement. That savings exceeded expectations in a RAND Corp study.

“The unit price for all three F-35 variants was reduced and the agreement will include an F-35A unit cost below $80 million in Lot 13, exceeding the Pentagon and Lockheed Martin’s long-standing cost reduction commitment earlier than planned,” the Lockheed Martin F-35 program general manager Greg Ulmer said in a statement.

While being a major part of Lockheed’s revenue, the F-35 has recently been holding competitions to find less expensive subcontractors to help control costs.

The new pricing could encourage more foreign customers to join the F-35 program. Lockheed executives have said that any country with an F-16 jet, the predecessor to the F-35, is a potential customer. This could put the market size at about 4000 jets, Lockheed CEO Marillyn Hewson recently told an investor conference.

Vice Admiral Mathias Winter, the head of the Pentagon’s F-35 office, has testified to Congress, that “future potential foreign military sales customers include Singapore, Greece, Romania, Spain and Poland.”

Foreign military sales like those of the F-35 are considered government-to-government deals where the Pentagon acts as an intermediary between the defense contractor and a foreign government.

Other U.S. allies have been eyeing a purchase of the stealthy jet including Finland, Switzerland and the United Arab Emirates.

(Reporting by Mike Stone in Washington; Editing by Bill Rigby and David Gregorio)