April 30, 2020 | International, Aerospace
By: Valerie Insinna
WASHINGTON — Boeing took a $827 million hit as cost overruns continue for the KC-46 tanker program, the company announced Wednesday.
About $551 million of the pre-tax charge was caused by new expenses associated with designing and integrating a new Remote Vision System for the tanker as part of an April agreement with the Air Force.
The remainder of the charge reflected “productivity inefficiencies and COVID-19 related factory disruption,” according to a news release. KC-46 production stopped for about three weeks over the past month due to a temporary shutdown at Boeing facilities in the Seattle area — including the factory in Everett, Wash., where the tanker is produced.
With the new charge, Boeing has now racked up about $4.6 billion in cost overruns over the life of the KC-46 program. Those expenses must be completely paid by Boeing under the terms of the $4.9 billion fixed-price firm contract it agreed to in 2011.
The bill comes as Boeing contends with the continued grounding of the 737 MAX and instability to the air travel market posed by COVID-19, which has led to lost orders and disruptions throughout the company's production lines.
But the RVS deal struck in April could potentially mark a new chapter for the tanker program, which has been mired in disputes between Boeing and the Air Force for years.
The RVS — integrated by Boeing with cameras and sensors from Collins Aerospace — feeds live video and other data to the boom operator, who is able to use those cues to pump gas into another aircraft. But the Air Force has complained that the system does not work properly in all lighting conditions, leading to an increased risk of the KC-46 accidentally scraping the aircraft receiving fuel.
Under the terms of the new deal, Boeing will make incremental hardware and software improvements to the existing system, but it will also design a new “RVS 2.0” with high-definition color cameras, better displays and improved computing systems not on the market when the first RVS was developed.
During an earnings call with investors on Wednesday, Boeing CEO Dave Calhoun said the defense market continues to be healthy with solid demand.
Overall, first quarter revenue for Boeing's defense sector decreased to $6 billion, down from about $6.6 billion in 2019. Most of that reduction was due to the KC-46 charge, according to the company, but a number of other defense programs were also impacted by the coronavirus pandemic, leading to reduced margin.
https://www.defensenews.com/air/2020/04/29/boeing-gets-another-827m-charge-on-the-kc-46-program/
January 5, 2023 | International, Aerospace
Experts say it may only a matter of time before either Russia or Ukraine, or both, deploy drones programmed to find and attack targets without humans.
October 30, 2020 | International, Aerospace
By: Joe Gould , Aaron Mehta , and Valerie Insinna WASHINGTON — The U.S. State Department is backing the sale of as many as 50 F-35 joint strike fighters to the United Arab Emirates in an arms deal worth an estimated $10.4 billion, according to multiple reports. The news came as the Trump administration informally briefed Congress on its plan to sell the advanced F-35 fighter to the United Arab Emirates Thursday. It follows weeks of speculation and behind-the-scenes debates about how to structure an F-35 deal with the UAE without cutting into Israel's qualitative military edge. If the sale is permitted by Congress and the UAE opts to buy the full number of F-35A conventional takeoff and landing variants covered by the deal, it would have parity with Israel, which has 50 F-35 “Adir” jets under contract, although the country is considering buying 25 more. (The quantities and values of such deals often change from initial estimates.) Amid reports the Trump administration is fast-tracking the F-35 sales, key Democratic lawmakers are continuing to urge a deliberate approach, citing concerns for Israel's security and the security of the warplane's sensitive technology. “This technology would significantly change the military balance in the Gulf and affect Israel's military edge," House Foreign Affairs Committee Chairman Rep. Eliot Engel, D-N.Y., said in a statement. "The F-35 Joint Strike Fighter is a game-changing stealth platform boasting advanced strike capability and unique sensor technology. The export of this aircraft requires very careful consideration and Congress must analyze all the ramifications. Rushing these sales is not in anyone's interest.” The consultations came days after Israel said last week it will not oppose the U.S. sale of “certain weapon systems,” widely considered to mean the F-35. That followed an agreement between Israel and the United States to upgrade its capabilities to preserve its edge. Engel said he plans to weigh the U.S. legal obligation to maintain Israel's military superiority in the region, as well the question of whether the sale would drive demands from other Middle Eastern nations to buy the F-35 in exchange for normalized ties with Israel. (The Trump administration recently brokered such a pact between Israel and the UAE.) “Israel currently has exclusive access in the region to the F-35, which has guaranteed its military edge over the last several years. As Congress reviews this sale, it must be clear that changes to the status quo will not put Israel's military advantage at risk,” Engel said. “This technology also must be safeguarded from our greatest global adversaries. With Russia and China active in the region, the American people will require unimpeachable assurances that our most advanced military capabilities will be protected.” For decades, the State Department has informally consulted with the Senate Foreign Relations and House Foreign Affairs committees before formally notifying Congress of sales, which affords lawmakers a chance to block them. Though lawmakers typically consider such deliberations sensitive and rarely speak publicly about them, Engel broke the news Congress had been informally notified. Assistant Secretary Bureau of Political-Military Affairs R. Clarke Cooper told reporters Wednesday the department plans to honor that process. Though Reuters has reported there is a goal to have a letter of agreement between the U.S. and the UAE by Dec. 2, Cooper said “there are no dates associated with the work that's being done.” He declined to provide specifics of a potential deal and the State Department declined to comment on Thursday. F-35 prime contractor Lockheed Martin referred questions to the State Department. Israeli opposition would be fatal to the deal in Congress, where Israel enjoys strong support. Two key Democrats introduced legislation earlier this month that would place restrictions on F-35 sales to Middle Eastern nations to address their concerns about both the Israel's security and the security of F-35 technology. On Thursday, Engel invited colleagues to join him in legislation, “to ensure that the sale of these types of weapons adhere to our most important national security goals.” https://www.defensenews.com/2020/10/29/uae-could-get-up-to-50-f-35s-in-10b-sale/
December 10, 2020 | International, Aerospace
By: Vivienne Machi   STUTTGART, Germany — The cogs are churning for the four-nation Eurodrone unmanned aerial system program, with a development contract approved last month and formal contract signing expected early next year, an Airbus official said Dec. 9. Speaking at the company's annual trade media briefing, Airbus' Unmanned Aerial Systems director Jana Rosenmann shared that the company reached an agreement Nov. 19 with the Organisation for Joint Armament Cooperation (OCCAR) to develop the next-generation medium-altitude, low-endurance drone. OCCAR is managing the Eurodrone program on behalf of the four European partners: Germany, France, Spain and Italy. The program's industrial team, composed of lead contractor Airbus Germany, along with Dassault Aviation and Leonardo, submitted a bid for the program in June. Since then, the companies have been involved in “very interesting and very lively discussions” with OCCAR, Rosenmann said during the briefing, which was held virtually. “I believe that what we have now, today on the table, is a fair and reasonable offer for both sides, both for the customer, as well as for industry,” she said. While a formal contract signing is expected in nearly 2021, the industry teams will now prepare for the Eurodrone program's ramp-up, to include filling 7,000 new technical positions around the continent. Rosenmann also revealed that the Eurodrone's final assembly will take place at Airbus' hub in Manching, Germany. “We will only have a single final assembly line,” she said. “This is for efficiency purposes, and clearly also for cost reasons for our customers.” Certain elements may be manufactured elsewhere, and then transferred to Manching for final assembly and ground testing. The delivery center will also be located in Manching, she noted. The aircraft fuselage will be fully integrated and assembled in Spain, before being transferred to Germany, Rosenmann added. Meanwhile, questions remain on who will supply Eurodrone's 120 total engines. “As we are in a competitive process at the moment, we're not at liberty to reveal any further details,” Rosenmann said. The COVID-19 pandemic caused significant disruption to industries around the world, and Airbus was not exempt, Rosenmann noted. But the UAS division began to pick up steam once again at the end of calendar year 2020, and is eager to maintain momentum on its portfolio of programs, including Eurodrone, she said. While the company awaits the formal contract signing, Airbus anticipates Eurodrone's first flight in 2025, and deliveries to begin in 2028, per Rosenmann. The current contract provides for 20 Eurodrone systems, each of which will include three aircraft for a total of 60 twin-engine air platforms. Currently, Germany as the program's lead nation is on contract for seven systems, while Italy has committed to five systems. Spain and France are each targeting four Eurodrone systems. https://www.defensenews.com/global/europe/2020/12/09/airbus-prepares-for-eurodrone-contract-signing-in-early-2021