August 7, 2023 | International, Aerospace
Indonesia buys 12 Anka drones from Turkey’s TAI business
The drones will be used by Indonesia’s Air Force, Army and Navy.
October 29, 2020 | International, Land
Boeing has another overrun on the KC-46, but its CEO says there’s reason for hope
WASHINGTON — Boeing reported another $67 million charge on the KC-46 tanker program in third-quarter earnings disclosed Oct. 28, capping off a difficult quarter defined by continued hardships on its commercial side.
The increase in KC-46 costs was “due to continued COVID-19 disruptions and productivity inefficiencies,” Boeing's chief financial officer, Greg Smith, told investors during an earnings call.
However, Boeing CEO Dave Calhoun expressed confidence that the program would turn the corner in 2021 and become profitable for the company.
“The tanker has been a drag on us for three or four years in every way you can think of with respect to investors,” he said. “But we are continuing to clear the hurdle with our customers with respect to its performance in their fleet and their need for that tanker.
"That whole relationship, I believe, will begin to transition next year, and opposed to being a drag on our franchise — which it's been — I believe it will become a strength in our franchise.”
Previous charges on the KC-46 program amount to about $4.7 billion — almost equal to the $4.9 billion sum of the company's firm fixed-price contract with the U.S. Air Force, which it signed in 2011.
In July, a $151 million charge was attributed to the decline in commercial plane production driven by the COVID-19 pandemic. That slowdown has made it more expensive to produce commercial derivative planes like the KC-46, which is based on the Boeing 767 and made on the same production line in Everett, Washington.
Overall, defense revenues slightly decreased to $6.8 billion “primarily due to derivative aircraft award timing,” the company said in a news release. But that impact paled in comparison to Boeing's commercial business, where revenues dropped from $8.2 billion in 2019 to $3.6 billion in 2020.
As a result of those continued difficulties, the company plans to lay off an additional 7,000 workers by the end of 2021, Calhoun announced. At that point, Boeing's workforce will have been cut by almost 20 percent, down from 161,000 earlier this year to about 130,000 employees.
Smith characterized 2020 has a “year of transition” for defense programs like the MQ-25, T-7 trainer and the Air Force One replacement, which are in development. Once those programs move into production, Boeing expects to see “modest growth,” he said.
But Calhoun added that global defense spending is unlikely to greatly increase in the coming years, meaning that growth in Boeing's defense portfolio will be limited.
“In fact, we believe there will be pressure on defense spending as a result of all the COVID-related spending that of course governments around the world have been experiencing,” he said. “I don't think we're looking at that world through rose-colored glasses. I expect real pressure on that market.”
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October 8, 2019 | International, Aerospace
Arms firms fret over delays in Franco-German fighter project
PARIS — France's Dassault Aviation and Europe's Airbus have stepped up pressure on France and Germany to agree the next stage of a planned fighter project, warning Europe's arms industry and long-term security could suffer from delays. The two companies are the leading industrial partners in a project to build a futuristic swarm of manned and unmanned warplanes, announced by the leaders of France and Germany two years ago and expanded earlier this year to include Spain. Dassault and Airbus won a 65-million-euro contract in January to develop the concept for the Future Combat Air System (FCAS) but await a new contract to build demonstrators for interlinked fighters, drones and an “air combat cloud” by 2026. Dassault Aviation Chief Executive Eric Trappier told a conference of policymakers last month that the demonstrator contract should have been launched in September but this was now slipping towards end-year. He called it “indispensable” to avoid any further delays in order to maintain the 2026 deadline. No reason has been given for the delays. On Monday evening, Dassault and Airbus amplified those warnings with a joint statement. “If Europe does not move forward — and move forward quickly — on this program, it will be impossible to maintain the development and production capabilities needed for a sovereign defense industry,” the companies said. The warplane system is expected to be operational from 2040, with a view to replacing Dassault's Rafale and the four-nation Eurofighter, in which Airbus represents both Germany and Spain. The new project faces competition from Britain and its plans for a new combat jet dubbed “Tempest”. The fighter developments have split the current Eurofighter consortium and led to a shake-up of industrial alliances as Italy joins Eurofighter partner Britain on Tempest, turning its back on Germany and Spain, while Sweden has opened the door to abandoning its independent stance by co-operating on Tempest. The FCAS is also overshadowed by differences between France and Germany over export policy after Germany imposed a ban on arms exports to Saudi Arabia over the death of killing of journalist Jamal Khashoggi a year ago by Saudi operatives. The ban, recently extended to March, has raised questions over a long-delayed Saudi border systems contract run by Airbus. Airbus Defence and Space Chief Executive Dirk Hoke called in a magazine interview last week for the export ban to be relaxed. German Chancellor Angela Merkel's government has said there is no reason for the moratorium to be lifted. France and Germany are expected to discuss the issue at ministerial meetings this week. AIRBUS SETBACK IN SPAIN Airbus meanwhile faces a battle to shore up its position as a top defense contractor in Spain after losing its place as the representative of Spain's interests on the upcoming fighter project to local defense electronics firm Indra Sistemas. Spain last month named Indra as contractor for the Spanish share of the Franco-German-led FCAS project, displacing Airbus from the Spanish coordinator role it had held on Eurofighter. Airbus officials have pledged to try to overturn the move but a Spanish defense source told Reuters there was no change in the decision. Indra declined to comment. Publicly, Airbus has said it was surprised by the decision but has pledged to continue to defend Spain's best interests. Dassault will meanwhile mark a long-awaited milestone on Tuesday when it delivers the first of 36 Rafales to India, the culmination of a fighter procurement process that lasted almost 20 years and involved the cancellation of a much larger deal. La Tribune reported on Monday that France and India were discussing a possible repeat order for 36 more Rafales. (Additional reporting by Emma Pinedo Gonzalez in Madrid, Tassilo Hummel in Berlin, Editing by Deepa Babington) https://business.financialpost.com/pmn/business-pmn/arms-firms-fret-over-delays-in-franco-german-fighter-project
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May 14, 2019 | International, Aerospace
Turkish company reveals plans to develop a supersonic drone
By: Burak Ege Bekdil ANKARA, Turkey — Turkey's state-controlled aerospace powerhouse, Turkish Aerospace Industries, plans to develop the country's first supersonic drone, company executives said. TAI showcased its “Aksungur” drone (“gyrfalcon” in English) earlier this month at the International Defence Industry Fair in Istanbul. The Aksungur is a new drone that can reportedly reach a maximum speed of 180 kph. According to Temel Kotil, TAI's chief executive official, the Goksungur (“peregrine falcon” in English) will be a supersonic version of the Aksungur. The Goksungur is set to have a maximum speed of 380 kph. Kotil said TAI developed the Aksungur, a twin-engine-powered aircraft, in 18 months. The Aksungur has a maximum payload of 750 kilograms. He said TAI manufactured two Aksungur drones for test flights and will deliver them this year to the Turkish Armed Forces. After completing the Aksungur program, TAI engineers will set out to work on the Goksungur program. TAI designed, developed and built the medium-altitude, long-endurance Anka, Turkey's first indigenous UAV. It also developed the Anka-S, a satellite-controlled version. TAI manufactures aviation components for Airbus, Lockheed Martin and Boeing, with annual exports worth $500 million. It is a partner in the U.S.-led, multinational Joint Strike Fighter program that builds the F-35 fighter jet. The Turkish company also produces the T129, a helicopter gunship, under license from the Italian-British company AgustaWestland. TAI expects a 2019 turnover of $2.6 billion. https://www.defensenews.com/unmanned/2019/05/13/turkish-company-reveals-plans-to-develop-a-supersonic-drone/