Tag: Security (Page 6 of 11)

Boeing Reports Third-Quarter Results

October 28, 2020 / WIL BALDWIN

– Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding

– Proactively managing liquidity and transforming for the future

– Revenue of $14.1 billion, GAAP loss per share of ($0.79) and core (non-GAAP)* loss per share of ($1.39)

– Operating cash flow of ($4.8) billion; cash and marketable securities of $27.1 billion

– Total backlog of $393 billion, including more than 4,300 commercial airplanes

Table 1. Summary Financial Results	Third Quarter		Nine Months
(Dollars in Millions, except per share data)	2020	2019	Change	2020	2019	Change

Revenues	$14,139	$19,980	(29)%	$42,854	$58,648	(27)%

GAAP
(Loss)/Earnings From Operations	($401)	$1,259	NM	($4,718)	$229	NM
Operating Margin	(2.8)%	6.3%	NM	(11.0)%	0.4%	NM
Net (Loss)/Earnings	($466)	$1,167	NM	($3,502)	$374	NM
(Loss)/Earnings Per Share	($0.79)	$2.05	NM	($6.10)	$0.66	NM
Operating Cash Flow	($4,819)	($2,424)	NM	($14,401)	($226)	NM
Non-GAAP*
Core Operating (Loss)/Earnings	($754)	$895	NM	($5,773)	($864)	NM
Core Operating Margin	(5.3)%	4.5%	NM	(13.5)%	(1.5)%	NM
Core (Loss)/Earnings Per Share	($1.39)	$1.45	NM	($7.88)	($1.13)	NM

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”

The Boeing Company [NYSE: BA] reported third-quarter revenue of $14.1 billion, GAAP loss per share of ($0.79) and core loss per share (non-GAAP)* of ($1.39), reflecting lower commercial deliveries and services volume primarily due to COVID-19 (Table 1). Boeing recorded operating cash flow of ($4.8) billion.

“The global pandemic continued to add pressure to our business this quarter, and we’re aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term,” said Boeing President and Chief Executive Officer Dave Calhoun. “Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic. We remain focused on the health and safety of our employees and their communities. I’m proud of the dedication and commitment our teams have demonstrated as they continued to deliver for our customers in this challenging environment. Despite the near-term headwinds, we remain confident in our long term future and are focused on sustaining critical investments in our business and the meaningful actions we are taking to strengthen our safety culture, improve transparency and rebuild trust.”

Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the U.S. Federal Aviation Administration, Transport Canada and the European Union Aviation Safety Agency. The Joint Operational Evaluation Board, featuring civil aviation authorities from the United States, Canada, Brazil, and the European Union, also conducted its evaluations of updated crew training. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.

To adapt to the market impacts of COVID-19 and position the company for the future, Boeing continued its business transformation across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. As the company resizes its operations to align with market realities, Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in the third quarter.

Table 2. Cash Flow	Third Quarter	Nine Months
(Millions)	2020	2019	2020	2019
Operating Cash Flow	($4,819)	($2,424)	($14,401)	($226)
Less Additions to Property, Plant & Equipment	($262)	($465)	($1,038)	($1,387)
Free Cash Flow*	($5,081)	($2,889)	($15,439)	($1,613)

*Non-GAAP measure; complete definitions of Boeing’s non-GAAP measures are on page 5, “Non-GAAP Measures Disclosures.”

Operating cash flow was ($4.8) billion in the quarter, reflecting lower commercial deliveries and services volume primarily due to COVID-19, as well as timing of receipts and expenditures (Table 2).

Table 3. Cash, Marketable Securities and Debt Balances	Quarter-End
(Billions)	Q3 20	Q2 20
Cash	$10.6	$20.0
Marketable Securities¹	$16.5	$12.4
Total	$27.1	$32.4
Debt Balances:
The Boeing Company, net of intercompany loans to BCC	$59.1	$59.5
Boeing Capital, including intercompany loans	$1.9	$1.9
Total Consolidated Debt	$61.0	$61.4

¹ Marketable securities consists primarily of time deposits due within one year classified as “short-term investments.”

Cash and investments in marketable securities decreased to $27.1 billion, compared to $32.4 billion at the beginning of the quarter, primarily driven by operating cash outflows (Table 3). Debt was $61.0 billion, down from $61.4 billion at the beginning of the quarter due to the repayment of maturing debt.

Total company backlog at quarter-end was $393 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes	Third Quarter		Nine Months
(Dollars in Millions)	2020	2019	Change	2020	2019	Change

Commercial Airplanes Deliveries	28	62	(55)%	98	301	(67)%

Revenues	$3,596	$8,249	(56)%	$11,434	$24,793	(54)%
Loss from Operations	($1,369)	($40)	NM	($6,199)	($3,813)	NM
Operating Margin	(38.1)%	(0.5)%	NM	(54.2)%	(15.4)%	NM

Commercial Airplanes third-quarter revenue decreased to $3.6 billion, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework. Third-quarter operating margin decreased to (38.1) percent, primarily driven by lower delivery volume, as well as $590 million of abnormal production costs related to the 737 program.

Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification. In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter. Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 billion.

Defense, Space & Security

Table 5. Defense, Space & Security	Third Quarter		Nine Months
(Dollars in Millions)	2020	2019	Change	2020	2019	Change

Revenues	$6,848	$7,002	(2)%	$19,478	$20,168	(3)%
Earnings from Operations	$628	$754	(17)%	$1,037	$2,581	(60)%
Operating Margin	9.2%	10.8%	(1.6) Pts	5.3%	12.8%	(7.5) Pts

Defense, Space & Security third-quarter revenue decreased to $6.8 billion, primarily due to derivative aircraft award timing, partially offset by higher fighter volume (Table 5). Third-quarter operating margin decreased to 9.2 percent reflecting less favorable performance, including a $67 million KC-46A Tanker charge.

During the quarter, Defense, Space & Security received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites. Also in the quarter, the U.S. Air Force and Boeing team was awarded the Collier Trophy for aerospace excellence for the X-37B autonomous spaceplane. Significant milestones included inducting the 20^th U.S. Navy F/A-18 into the Service Life Modification program as well as delivering the firstBell Boeing V-22 Osprey to Japan and the first MH-47G Block II Chinook to the U.S. Army Special Operations.

Backlog at Defense, Space & Security was $62 billion, of which 30 percent represents orders from customers outside the U.S.

Global Services

Table 6. Global Services	Third Quarter		Nine Months
(Dollars in Millions)	2020	2019	Change	2020	2019	Change

Revenues	$3,694	$4,658	(21)%	$11,810	$13,820	(15)%
Earnings from Operations	$271	$673	(60)%	$307	$2,013	(85%)
Operating Margin	7.3%	14.4%	(7.1) Pts	2.6%	14.6%	(12.0) Pts

Global Services third-quarter revenue decreased to $3.7 billion, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume (Table 6). Third-quarter operating margin decreased to 7.3 percent primarily due to lower commercial services volume and additional severance costs.

During the quarter, Global Services signed an agreement with GECAS for 11 737-800 Boeing Converted Freighters, secured a six-year P-8A support contract for the Royal Australian Air Force, and was awarded F-15EX training and services support contracts by the U.S. Air Force. Global Services also delivered the first P-8A Operational Flight Trainer for the United Kingdom Royal Air Force.

Additional Financial Information

Table 7. Additional Financial Information	Third Quarter	Nine Months
(Dollars in Millions)	2020	2019	2020	2019
Revenues
Boeing Capital	$71	$66	$205	$207
Unallocated items, eliminations and other	($70)	$5	($73)	($340)
Earnings from Operations
Boeing Capital	$30	$29	$47	$86
FAS/CAS service cost adjustment	$353	$364	$1,055	$1,093
Other unallocated items and eliminations	($314)	($521)	($965)	($1,731)
Other income, net	$119	$121	$325	$334
Interest and debt expense	($643)	($203)	($1,458)	($480)
Effective tax rate	49.6%	0.8%	40.1%	(350.6)%

At quarter-end, Boeing Capital’s net portfolio balance was $2.0 billion. The change in revenue and earnings from other unallocated items and eliminations was primarily due to the timing of cost allocations. Earnings from other unallocated items and eliminations was also impacted by lower enterprise research and development expense. Interest and debt expense increased due to higher debt balances. The third quarter effective tax rate reflects tax benefits related to the five year net operating loss carryback provision in the Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the impact of pre-tax losses.

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Core Operating Earnings, Core Operating Margin and Core Earnings Per Share

Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on pages 12-13.

Free Cash Flow

Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.

Caution Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers’ information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt financing on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Boeing, U.S. Navy to Demo Future Ramjet Missile Technology

October 20, 2020 / WIL BALDWIN

– The demonstrator will help the Navy determine technical requirements for future carrier-based weapons systems

Boeing [NYSE: BA] and the U.S. Navy will demonstrate advanced missile technologies that will make carrier air wing strike fighters more lethal against threats into the next decade.

Boeing has been awarded a $30 million contract from the Navy to co-develop the Supersonic Propulsion Enabled Advanced Ramjet (SPEAR) flight demonstrator with the Navy’s Air Warfare Center Weapons Division. The contract award comes after the Department of Defense requested information from the defense industry to help the Navy determine technical requirements of future carrier-based land and sea strike weapons systems.

“The SPEAR flight demonstrator will provide the F/A-18 Super Hornet and carrier strike group with significant improvements in range and survivability against advanced threat defensive systems,” said Steve Mercer, Boeing’s SPEAR program manager. “We have a talented team of engineers to meet the challenging technical demands and schedule timeline that the SPEAR program requires. We look forward to working with Navy experts to advance technologies for the Navy’s future capabilities.”

Boeing and the Navy Air Warfare Center Weapons Division plan to fly the SPEAR demonstrator in late 2022. Prior successes by Boeing in developing supersonic and hypersonic technologies include the X-51 Waverider test vehicle in 2010 and the Variable Flow Ducted Rocket propulsion system under the Triple Target Terminator program in 2014.

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.

Embraer Delivers Six A-29 Super Tucano to Philippine Air Force

October 15, 2020 / WIL BALDWIN

All six Super Tucano aircraft ordered by The Philippine Air Force (PAF) have been officially handed over to the Air Force today. The aircraft will be deployed for close air support, light attack, surveillance, air-to-air interception, counter-insurgency missions, advanced training and are part of PAF’s ongoing modernization plan.

“The Philippine Air Force takes pride in welcoming the six A-29B Super Tucano from Embraer Defense and Security into the blue fold of our skies as part of our fleet. The addition of these close air support aircraft is a great leap in our air power capability as we soar together in our flight to a more capable and credible Air Force for the nation and its people,” Lieutenant General Allen T. Paredes AFP, Commanding General of the Philippine Air Force.

“It is an honour to deliver these six A-29 Super Tucanos to The Philippine Air Force,” said Jackson Schneider, President and CEO of Embraer Defense & Security. “Delivering an aircraft amidst a global pandemic is challenging, but we were committed to go the extra mile every step of the way to have the aircraft in the hands of PAF to fulfil their security missions.”

These aircraft will be operated and maintained by the 15th Strike Wing, the PAF’s end-user. In November 2017, a firm order of six A-29 Super Tucano light attack and advanced training aircraft for the Philippine Air Force (PAF) was made after a comprehensive public bidding process.

The A-29 Super Tucano is a durable, versatile and powerful turboprop aircraft capable of carrying out a wide range of missions, even operating from unimproved runways. To date, the Super Tucano was selected by 15 air forces worldwide.

Lockheed Martin to Acquire i3 Hypersonics Portfolio

October 11, 2020 / WIL BALDWIN

– Acquisition Reinforces Lockheed Martin’s Commitment to Delivering Exceptional Systems to the Warfighter

Lockheed Martin [NYSE: LMT] today announced the signing of a definitive agreement to acquire a portion of Integration Innovation Inc. (i3), a software and systems engineering company based in Huntsville, Alabama. The portfolio alignment between i3 and Lockheed Martin provides the opportunity to design and deliver hypersonic-specific technology solutions that benefit the warfighter.

“Our customers require the most forward-thinking, advanced technology that anticipates and addresses their national security requirements. This business combination not only reinforces our commitment to their missions, but also expands our portfolio in a strategic way,” said Eric Scherff, vice president of Hypersonic Strike Programs at Lockheed Martin. “Combining i3’s talent and domain expertise with our shared vision for hypersonic strike will expand how we think about and deliver this critical capability to the warfighter across domains.”

i3’s hypersonic strike and defense business set offers strategic solutions to U.S. Government and commercial customers. Adding i3’s talent and expertise to the Lockheed Martin portfolio will expand capabilities for customers across several mission areas and national security needs, while also allowing for more integrated solutions.

“We’re proud to be a part of the Lockheed Martin family, as they are a technology authority and employ some of the best and brightest in the industry,” said Mike Wicks, CEO at i3. “We have invested much time and energy into developing strategic solutions at i3. And, we’re finding the need to synergize these offerings with Lockheed Martin is more timely than ever and unlocks the value to our joint customers.”

Subject to the satisfaction of customary closing conditions, the transaction is expected to close in approximately 30 days. Upon closing, i3’s Hypersonics portfolio will be managed by the corporation’s Space business area.

SkyWest Enters Into Secured Loan Facility Under CARES Act

September 29, 2020 / WIL BALDWIN

St. George, Utah, Sept. 29, 2020 /PRNewswire/ — SkyWest, Inc. (NASDAQ: SKYW) (“SkyWest”) today announced that it and its wholly-owned subsidiary SkyWest Airlines, Inc. have entered into a five-year Loan and Guarantee Agreement with the U.S. Treasury Department which provides SkyWest Airlines with a secured term loan facility to borrow up to $573 million under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). On September 29, 2020, upon entry into the Loan Agreement, SkyWest Airlines borrowed $60 million under the facility and has until March 26, 2021 to determine if it will borrow additional amounts in up to two subsequent borrowings.

The interest rate under the secured term loan facility is LIBOR plus 3.0% with no amortization. In consideration for the loan, SkyWest is obligated to issue warrants to the U.S. Treasury Department to purchase shares of common stock based on, and in connection with, amounts drawn under the secured term loan facility. In connection with the initial $60 million draw under the facility, SkyWest issued warrants to purchase 211,416 shares of common stock at an exercise price of $28.38 per share.

The Loan and Guarantee Agreement also includes certain restrictions, including restrictions on the payment of dividends and the repurchase of SkyWest shares. The Secured Loan is collateralized by aircraft engines and aircraft parts.

Boeing Partners with General Atomics & Aerojet Rocketdyne in Homeland Missile Defense Bid

September 27, 2020 / WIL BALDWIN

Boeing [NYSE: BA] is teaming with General Atomics Electromagnetic Systems and Aerojet Rocketdyne [NYSE: AJRD] in its bid to build the Next Generation Interceptor (NGI) for the U.S. Missile Defense Agency (MDA). The NGI is a key element of the MDA’s missile defense system, which is designed to intercept and destroy incoming intercontinental ballistic missiles.

“The Boeing-led team will deliver critical technology to enhance our homeland missile defense,” said Norm Tew, Boeing Missile and Weapon Systems vice president and general manager, and Huntsville site senior executive. “Combined, we bring decades of expertise in proven missile and weapon systems.”

On Aug. 12, the Boeing-General Atomics-Aerojet Rocketdyne team submitted an NGI offering that will improve performance and enhance the nation’s ability to defend against future threats.

GA-EMS has a long history of delivering missile technology and complex systems for critical national defense programs. “This partnership combines our legacies in innovation, bringing together new ideas to create an affordable and reliable solution to defend against emerging threats,” said Scott Forney, president of GA-EMS.

Aerojet Rocketdyne’s propulsion systems have powered the nation’s missile defense for decades. “As the country’s premier hit-to-kill propulsion provider, we’re able to deliver low-cost, high-performance systems by leveraging our skilled workforce and strategic investments in innovative technology and materials,” said Eileen Drake, Aerojet Rocketdyne CEO and president.

Northrop Grumman will serve as a component supplier on the Boeing-led team.

A contract award is expected later this year.

Canada's CH-147F Chinook makes its 1st flight

Boeing, Honeywell and Rolls-Royce Deutschland Partner to Service Chinook Engines

September 19, 2020 / WIL BALDWIN

Boeing [NYSE: BA], Honeywell Aerospace and Rolls-Royce Deutschland Ltd. have reached an agreement to provide in-service support of the T-55 engine should the government of Germany select the H-47 Chinook for its Schwerer Transporthubschrauber (STH) heavy-lift helicopter requirement.

Since the forming of the Chinook Germany Industry Team in 2018, originally comprised of nine German companies, Boeing continues to build a strong industry team to provide the Luftwaffe with local long-term services support, maintenance and training of the Chinook over the next several decades. In addition, Boeing’s industrial plan will foster German economic growth while creating highly skilled jobs in country.

“The partnership between Honeywell, Rolls-Royce Deutschland and our industry team members provides an established local supply base for around-the-clock parts availability, NATO interoperability and streamlined aircraft maintenance procedures,” said Michael Hostetter, vice president of Boeing Defense, Space & Security in Germany. “The Luftwaffe will have access to training and sustainment solutions that ensures the H-47 Chinook’s readiness for any mission.”

Under the agreement, Honeywell will license Rolls-Royce Deutschland as its partner in Germany to perform depot-level maintenance of the Chinook T-55 engine operated by the Luftwaffe.

Our partnership with Boeing and Rolls-Royce Deutschland will provide the Luftwaffe with access to a world-class maintenance and repair and overhaul facility for the T-55 in Germany. The in-country location will also ensure fast and flexible reactions to cater to the demanding needs of the Luftwaffe.

The H-47 Chinook is the most advanced transport rotorcraft in the United States Army inventory. With a proven track record of performance and versatility unmatched by any other heavy-lift aircraft, the Chinook provides Germany with the most modern, affordable solution ready to operate today. As chosen by NATO nations Canada, Greece, Italy, Spain, Turkey, the Netherlands, the United Kingdom and the United States, the Chinook gives Germany interoperability that other helicopters cannot while meeting a wide range of mission needs.

Boeing has an established and growing presence in Germany. The company is a strong contributor to the German economy with more than 1,000 employees at 11 sites from Hamburg to Munich and sustains thousands of additional jobs through its supply chain and other activities. Boeing and its supply-chain partners spend almost $1.2 billion a year with its established network of suppliers located across Germany. Germany is a key market for Boeing to invest in research and technology partnerships. Boeing has established two research sites in Germany, the Research & Technology Office in Munich and the Digital Solutions & Analytics Lab Frankfurt and invests in a growing portfolio of research and technology projects with German industry, universities and research organizations.

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. Boeing employs more than 160,000 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.

Leonardo Joins Adelaide’s Lot Fourteen Space Precinct

September 17, 2020 / WIL BALDWIN

– Partners with SmartSat CRC

Leonardo commits to the South Australian space ecosystem establishing a foothold for its space service business – through its subsidiary e-GEOS – in partnership with SmartSat CRC. e-GEOS is a joint venture between Telespazio – Leonardo’s subsidiary – and the Italian Space Agency.

The news was warmly welcomed by the local community and by the Premier of South Australia Hon. Steven Marshall who recently welcomed Leonardo at Lot Fourteen. “South Australia is the defence and space capital of the Country and it’s fantastic to see another incredible international company choosing South Australia to do business” he commented. “The strong interest being shown by major national and international players is a coup for South Australia and is further evidence that Lot Fourteen is a magnet for business and jobs. The addition of Leonardo to Lot Fourteen cements my governments strong commitment to create a once in a generation hub that will generate thousands of jobs for South Australians now and into the future.” Hon. Marshall stated.

As a dominant worldwide supplier in the space sector, Leonardo aims to collaborate with the Australian space industry to stimulate local growth and competitiveness in global markets.

In 2019, Leonardo Australia through the involvement of e-GEOS (a joint venture between Telespazio – Leonardo’s subsidiary – and the Italian Space Agency), became a supporting partner of Adelaide-based space Cooperative Research Centre SmartSat CRC. Leonardo Australia’s partnership with SmartSat is a key driver in the company’s strategy to grow its presence in the space industry within the Oceania region and to develop joint research and commercialisation opportunities. As prominent provider of the European Copernicus program, e-GEOS supports rapid security and disaster response operations all over the world, including providing Australian fire authorities rapid mapping during recent bushfires.

Leonardo Australia is the regional subsidiary of Leonardo, a global top ten high technology Defence and Space company with annual revenues of 23 bn AU$.

Mr George Coulloupas of Leonardo Australia (Business Development Manager – Space) is leading Leonardo Australia’s Space Line of Business based at Lot Fourteen. George has extensive Australian-based experience in start-up innovation, space-derived service commercialisation and primary.

Delta Launches $6.5 Billion Debt Deal Backed by Frequent Flyer Program

September 14, 2020 / WIL BALDWIN

CHICAGO, Sept 14 (Reuters) – Delta Air Lines said on Monday it is seeking to raise $6.5 billion through new bonds and loans backed by its SkyMiles loyalty program, further bolstering liquidity to weather a drastic downturn in travel demand due to the COVID-19 pandemic.

The airline said it would use the loyalty program as collateral to secure the new loans and issuance, as it continues to burn through about $27 million in cash each day.

U.S. airlines have cut costs and raised debt to survive what they call an unprecedented industry crisis. The situation is not expected to improve until there is a meaningful recovery in demand.

With its latest financing deal, Delta will not pursue a $4.6 billion federal loan available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, officials said, even as it continues to lobby for a second round of federal payroll grants.

Atlanta-based Delta is among U.S. airlines to have tapped funds under a $25 billion made available primarily in grants under the CARES Act to cover employees’ payroll through September, but not a separate $25 billion package in secured loans.

The loan program has attractive financing terms but restricts executive compensation and share buybacks.

The airline has said it could furlough nearly 2,000 pilots in October without more federal aid, but believes it can avoid any flight attendant furloughs through the winter thanks to strong demand for voluntary departures or leaves.

Delta had $15.7 billion in liquidity at the end of June, which it said equaled about 19 months of financial runway at a daily burn rate of $27 million.

It still has unencumbered assets worth $6 billion to $7 billion, primarily in the form of spare aircraft parts and engines, if needed, officials said.

Delta did not disclose the value of the loyalty program or the terms of the new financing, which mirrors a debt deal by United Airlines in June backed by its $20 billion MileagePlus program.

Delta’s shares, which have lost about 46% this year, closed at $31.70 on Friday.

(Reporting by Tracy Rucinski; Editing by Ana Nicolaci da Costa)

Boeing, SRP Sign Renewable Energy Agreement for Mesa Site

September 13, 2020 / WIL BALDWIN

– Boeing signs 15-year renewable energy agreement with SRPAgreement supports Boeing’s emission reduction goalsSRP solar photovoltaic plant scheduled to open in 2021

Boeing [NYSE: BA] and the Salt River Project (SRP) utility have signed a multi-year agreement to power Boeing’s Mesa site with renewable solar energy.

Boeing will be one of several companies to receive power from SRP’s soon-to-be-built 100-megawatt solar photovoltaic plant in Eloy, Arizona. Boeing’s Mesa site will receive about 25% of its electricity needs from this plant over the next 15 years. This supports the company’s overall goal to reduce greenhouse gas emissions 25% by 2025, and ultimately power operations with 100% renewable energy.

“It makes sense to take advantage of renewable solar energy at a location that enjoys 295 days of sunshine a year,” said Beth Schryer, Boeing vice president of Facilities & Asset Management. “This will help offset the same amount of energy equivalent to that used in one year by 670 average U.S. homes.”

SRP’s 700-acre Eloy plant is expected to begin operation in December 2021. Located approximately 50 miles from the plant is Boeing’s Mesa site. The Mesa site produces Apache helicopters and houses various corporate, commercial and defense teams in more than 40 buildings. Boeing employs more than 4,600 people in Arizona, with most based in Mesa.

“Boeing’s longstanding vision of improving the environment and reducing carbon emissions is a natural fit for the SRP Sustainable Energy Offering,” said Jim Pratt, SRP Associate General Manager and Chief Customer Executive. “We appreciate customers like Boeing working with us on this collaborative initiative to invest in renewable energy that not only helps them achieve their aerospace industry sustainability goals, but does so at an affordable cost.”

This agreement expands Boeing’s leadership in the use of renewable energy and energy efficiency. Two Boeing sites – Renton, Washington, and Charleston, South Carolina – use 100% renewable energy today. The company is also ranked 17^th on the EPA’s Green Power Partnership Fortune 500® Partners List, and has been named an EPA ENERGY STAR® Partner of the Year for 10 years running.

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. Boeing employs more than 160,000 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.

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