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July 16, 2020 | International, C4ISR, Security

Airbus US pivots business strategy away from selling big platforms to the Pentagon

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WASHINGTON — After decades of trying to break into the U.S. military aircraft market, Airbus is shifting course with a new strategy that prioritizes selling off-the-shelf sensors, data, space and intelligence capabilities that have been customized for U.S. government buyers.

During a Wednesday discussion with reporters about the new direction for the business, Chris Emerson, the new chief executive of the Airbus U.S. Space and Defense division and formerly the president of Airbus Helicopters, said he wanted to move the company's focus in the United States away from the major fixed-wing platforms that are the company's bread and butter in Europe.

Instead, he hopes to expand the company's presence in the growing space and intelligence markets, particularly with low-cost satellites like those made by its joint venture One Web, geospatial intelligence and imaging, and space-based sensors.

“We know the Air Force needs an A400M, but I can spend 10 years trying to convince the Air Force and all the politicians that they should buy an A400M. And ultimately they will buy C-130s,” Emerson said.

“So let me focus this energy, this great leadership team, on achieving something that is tangible today that the customer really needs. Yes, it's not traditional for Airbus, but it will bring the value and we'll have a better foundation if one day my successor says, ‘You know, I want to be a big platform competitor.' At least we'd have built up trust and proven that we could really meet the requirements that are demanded of it.”

Although Airbus is a juggernaut in the international military and commercial aerospace market, it has always struggled to find its place among the U.S. defense prime contractors as major aircraft manufacturers. It famously lost the KC-X contract to Boeing in 2011 after a bloody and prolonged battle. Since then, the company's biggest procurement victory has been continued sales of its UH-72A Lakota helicopter to the Army.

“I remember I spent eight years thinking we could bring real value on air-to-air refueling for the Air Force. But I spent eight years, and I'm frustrated because I look at it and we didn't succeed,” Emerson said. “I've asked the team, ‘Let's find a roadmap where we can actually make a mark with the customers.' And that means, I'm not going to go look at competing with Boeing and the Lockheeds and Northrop, but I'm going to look at other areas.”

The U.S. customer is increasingly making investments into technologies that can augment or accelerate decision-making, he said.

“That's where we start to look everything beyond an air breathing platform. We started to look at the data, the intelligence, that they need,” he said. “It could be intelligence that is geospatial-related, either Earth observation, or electro-optical, or synthetic aperture radar, or a blend that we're pulling in multi-source information.”

Airbus already develops those types of capabilities in its commercial air and space businesses, and could quickly adapt them to U.S. demands, he said.

When there are opportunities to offer Airbus aircraft to the U.S. military, the strategy will be to partner with American primes, Emerson said. For instance, last year Airbus and Lockheed signed a memorandum of understanding to market aerial refueling services to the U.S. Air Force using the Airbus A330 Multi Role Tanker Transport.

Asked on Wednesday whether the two companies planned to compete for tanker leasing opportunities currently being considered by the Air Force, Emerson said Lockheed takes the lead on interactions with the U.S. military on aerial refueling.

He added that UH-72s will continue to be manufactured alongside Airbus's commercial H125 helicopter in Columbus, Miss., but modifications, support and contracting will be performed by the Airbus U.S. Space and Defense.

In addition to naming Emerson as head of the company's U.S. defense and space business, Airbus also appointed a five-person board of directors — which includes former National Geospatial-Intelligence Agency director Letitia Long and William Shelton, a retired Air Force four-star and former head of Air Force Space Command — aimed at deepening ties with the U.S. military, space and intelligence agencies. It also named a seven-person team of advisers made up of former national security officials.

https://www.defensenews.com/industry/2020/07/15/airbus-us-pivots-business-strategy-away-from-selling-big-platforms-to-the-pentagon/

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    "The impact is significant, and it's unacceptable," Gen. Jay Raymond told the Senate Armed Services Committee. By THERESA HITCHENSon May 06, 2020 at 8:14 PM WASHINGTON: DoD is pressing for the FCC to reverse its controversial decision to approve Ligado's plan to create a mobile 5G communications network, one the Pentagon asserts will jam GPS receivers. “It is clear to DoD that the risk to GPS far outweighs the benefits of this FCC decision. And the FCC needs to reverse their decision,” DoD CIO Dana Deasy told the Senate Armed Services Committee (SASC) hearing during a marathon hearing this afternoon. A formal “re-petition” action has to be taken by National Telecommunications and Information Administration (NTIA) by the end of May. NTIA, which falls under the Commerce Department, coordinates federal agency use of the radio frequency spectrum. DoD, Deasy told the SASC, is working to provide NTIA with the necessary technical information to do so. 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(Barr was tapped by President Donald Trump on April 4 to head a new Telecom Team designed to ensure that China cannot dominate the 5G marketplace and undercut the security of emerging US networks.) DoD and many other agencies, including the Transportation Department, have opposed the planned Ligado (formerly LightSquared) network for nearly a decade, arguing that it will drown out GPS signals in most current receivers. Their protests have been echoed by a wide swathe of the defense and commercial transport industry, including the Aerospace Industries Association and the National Defense Industrial Association. Indeed, according to a press release put out today by Inhofe's office: “This opposition extends to the private sector as well. Numerous industries across the gamut – commercial air, satellite communications, weather, construction, and more – have also registered their objections to the FCC's Order.” Mike Griffin, head of DoD Research and Engineering, explained that the issue is the “noise” that will be created by Ligado because it will use spectrum designed for satellite use to rebroadcast via terrestrial cell towers. He said that the situation for the vast number of GPS receivers today would be analogous to trying to hear the “rustling of leaves” through the noise of “100 jets taking off all at once.” Perhaps most significantly, Griffin pushed back hard against Ligado's assertions in FCC filings (and most recently in a letter today to the SASC obtained by Breaking D) that most receivers would not be affected. He said testing done by the Transportation Department showed that high-end GPS receivers used in civil aviation, which costs some $10,000 each, are impacted by Ligado's planned signal strength. Even those “hardened” receivers are “barely capable” of discerning GPS signals through the “noise” caused by Ligado's 9.8 dBW — an energy level about equal to that put out by a 10 watt light bulb). More worryingly, Griffin asserted that most commercial GPS receivers — including those that would be used to guide self-driving cars in the future — “lose lock” on the signal at a power level some 100 times lower than Ligado plans to use. Gen. Jay Raymond, double hatted as the head of Space Force and Space Command, told the SASC that Ligado's network would have a “significant impact” on Dod's homeland defense mission, as well as on military and commercial space launch capabilities. “In my opinion, the impact is significant, and it's unacceptable,” he said. While Deasy said one avenue for reversing the decision could be legislative action, it remains unclear what the SASC can actually do, however — should the committee even be able to agree on a course of action. 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Richard Blumenthal suggested that the matter perhaps might be better adjudicated in the courts, given the questions raised about the legalities of the FCC's administrative process that have been raised by members of Congress as well as several industry groups. https://breakingdefense.com/2020/05/dod-pushes-to-reverse-fcc-ok-of-ligado-5g-network/

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