COVID-19 Infects Defense Industry With F-35 Production Slowdown

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  April 30, 2020 | International, Aerospace

  Airbus reports $515M in first-quarter losses

  By: Angela Charlton, The Associated Press PARIS — Airbus says the aviation industry's unprecedented troubles are just beginning. The European manufacturing giant reported €481 million (U.S. $515 million) in losses in the first quarter, put thousands of workers on furlough and sought billions in loans to survive the coronavirus crisis. And its CEO said Wednesday it's still at an “early stage.” Even after virus-related travel restrictions eventually ease, Chief Executive Guillaume Faury acknowledged it will take a long time to persuade customers to get back on planes. Just how long, he can't predict. “We are in the gravest crisis the aerospace industry has ever known,” Faury said. “Now we need to work as an industry to restore passenger confidence in air travel as we learn to coexist with this pandemic.” Images shared online of packed planes and maskless, elbow-to-elbow passengers on U.S. flights — despite virus protection guidelines - have worried travelers and airline unions alike. International travel restrictions, meanwhile, have grounded thousands of planes worldwide. Faury insisted that airplanes are “probably the best place to be” during a virus outbreak because of air filtration systems put in place after previous virus outbreaks and other threats, but said Airbus will work with aviation authorities to try to calm the public. Shares in Airbus and Boeing have dropped some 60 percent this year as customer airlines collapse or seek billions of dollars in government bailouts. Airbus was unable to deliver 60 planned planes in the quarter because of virus-related problems, and said the second quarter looks similarly rough. Customers are asking for delays, which Faury called “the biggest issue we are managing at the moment.” Airbus executives expressed hope Wednesday that deliveries could start picking up in the second half of the year. But they refused to issue long-term guidance given that the virus is still spreading, and that governments are reluctant to relax international travel restrictions. U.S. rival Boeing is facing similar woes. Boeing's CEO said Monday that it will take years for the aircraft-building business to return to levels seen before the coronavirus pandemic. Airbus has slashed production by a third since the virus hit, and Faury said Airbus will study “resizing” the company after the crisis ebbs — a worrying prospect on a continent where Airbus has factories in four countries and is one of the region's industrial leaders. Already 3,000 Airbus workers in France are on temporary unemployment and the number is expected to grow. In addition, 3,200 workers in the U.K. are on furlough and negotiations are under way to put thousands of German workers on short work plans. A recent letter by Faury warning workers that the company is “bleeding cash” was a shock to many. But Frederic Romain of French union CFTC said “the situation requires transparency. It allows workers to open their eyes” to what's ahead. “Fears? We have a lot of them. For the moment we don't have a clear vision of what awaits us," Romain said. Airbus reported a 15 percent drop in revenues to €10.6 billion in the first quarter. Looking longer term, Faury insisted that Airbus remains committed to reducing airplane emissions but said it's “less urgent” than before the coronavirus crisis because the company has more pressing problems to solve. “For practical cash reasons," Airbus has stopped or suspended some projects aimed at “decarbonizing” its production, he said. https://www.defensenews.com/industry/2020/04/29/airbus-reports-515m-in-first-quarter-losses/

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  November 14, 2019 | International, Aerospace

  FAcT to Deliver Relevant, Flexible and Effective Aircrew Training Solution

  Marcello Sukhdeo An interview with Colonel Pete Saunders, Director of Air Simulation and Training, Royal Canadian Air Force In February 2016, the Future Aircrew Training program was granted a broader scope to include current Air Combat Systems Officers (ACSO) and Airborne Electronic Sensor Operators, otherwise known as AES Ops. As a result, the “Future Pilot Training Project” was renamed Future Aircrew Training, or FAcT. Pilots, ACSOs and AES Ops share core skills and knowledge for which a common training system may be employed. The design of the new training system will seek to incorporate the latest and best concepts and technologies for aircrew training available from industry and in use by other militaries around the world. Through the FAcT program, the Canadian Armed Forces (CAF) will ensure that the three aircrew occupations move on to their Operational Training Units with sufficient immersion in live flying and simulation to provide them with appropriate skill sets in their respective fields. Recently, Vanguard had the opportunity to interview Colonel Pete Saunders Director of Air Simulation and Training with the Royal Canadian Air Force (RCAF) about the FAcT program. Col Saunders enrolled in the Canadian Forces in March 1990. Since that time, he has enjoyed operational postings flying and instructing on his beloved Sea King Helicopters at 443 (MH) Sqn in Pat Bay, British Columbia; 423 (MH) Sqn, and 12 Wing Operations in Shearwater, Nova Scotia; culminating in Command of 406 (M) OTS. He has served onboard HMCS Annapolis, HMCS Iroquois, HMCS Fredericton and HMCS Toronto and has deployed throughout the Middle East. Col Saunders, we know that there is a shortage of pilots in Canada. Of course, this problem is not just limited to Canada, but is a global issue as well. What is the current level of pilot/aircrew production in Canada, and how many more will FAcT produce once that program is in place? While the RCAF does not have a shortage of applicants for a career as a pilot, low levels of experienced personnel pose a risk to the RCAF's operational output, which impacts the RCAF's ability to train, absorb, and employ its personnel in certain capabilities. The RCAF, in conjunction with CAF senior leadership, is putting in place targeted short-term objectives and holistic long-term activities that will stabilize and grow the RCAF pilot experience levels across all training and operational aircraft fleets. One of these initiatives is the augmentation of pilot training capacity. This will serve to increase the timeliness, absorption, and production of New Wing Graduates (NWG) and pilot Operational Training Unit Graduates (OTU), while being postured to rapidly absorb these pilots at the tactical squadrons. The FAcT program will deliver a relevant, flexible and effective aircrew training solution that modernizes the initial phases of pilot training currently provided via the NFTC and CFTS contracts as well as initial training ACSOs and AES Ops. 2 Canadian Air Division produced 100 New Winged Grads (NWG) during the 2018-2019 fiscal year. Broken down into the subsequent streams for pilots, this number represents 21 Phase III Harvard, 49 helicopter, and 33 multi-engine pilots. Additionally, 38 ACSOs and 17 AES Ops were produced in the same timeframe. The new program will produce an increased number of graduates to a newly defined standard. Specifically, FAcT seeks to generate 120 Pilots, 40 ACSOs and 36 AES Ops each year. Pilot training can be quite costly. What is the current cost of training a basic pilot, and how much will it cost under the new contract? The current training program for pilots is conducted under the auspices of two service contracts: A $3.8 billion, 25-year contract with CAE Military Aviation Training, ending in 2023 (as last amended), for the North Atlantic Treaty Organization Flying Training in Canada (NFTC) program, which operates out of Moose Jaw, Saskatchewan; A $1.8 billion, 22-year contract with Allied Wings, ending in 2027, for the Contracted Flying Training and Support (CFTS) program, which operates out of Southport Aerospace Centre near Portage la Prairie, Manitoba. 3 Canadian Forces Flying Training School (3 CFFTS) conducts flying training on the Multi-Engine and the Helicopter training programs while the contractor, Allied Wings, provides all other aspects of training and support services for primary, basic and advanced training programs. The invitation to qualify for the FAcT program identified five qualified suppliers (Airbus Defence and Space, Babcock Canada Inc., Leonardo Canada, Lockheed Martin Canada Inc., SkyAlyne Canada Limited Partnership). Canada is currently in an engagement phase which involves in-depth consultation with the five qualified suppliers. Phase 3 of the solicitation process will be a competitive Request for Proposal (RFP) process open to the Qualified Suppliers. The potential value of the future contract has yet to be determined. How do you plan to maintain output during the transition between the current contracts (NFTC and CFTS) and FAcT, considering the limited number of instructors on the market and overlap of facilities? One of the tenets of the FAcT transition strategy is that the FAcT contractor will be expected to ramp up with minimal interference and interdependencies with the legacy contractors, including the use of instructors. The FAcT contractor will not have access to infrastructure being used to deliver NFTC and CFTS during transition as it will be in use by the incumbent contractors to deliver legacy training. All FAcT Qualified Suppliers must prepare their bids accordingly. The FAcT transition strategy will continue to evolve as the program moves forward throughout the current and future phases. As other major capital projects have done in the past, the implementation of FAcT will leverage the creation of a program governance structure and the FAcT Training Implementation Working Group (TIWG). All FAcT stakeholders will have a voice at the TIWG to ensure a smooth implementation while the legacy programs continue to operate. What kind of aircraft are we likely to see in Portage and Moose Jaw? The aircraft utilized in training will depend on the training solution proposed by the successful bidder. FAcT is not an aircraft acquisition program; rather, it is a training program. Aircraft – as much as ground-based training systems, courseware, and buildings – are all training aids whose role is to enable the production of winged aircrew. Are any of the current units or wings likely to close or move due to FAcT? RCAF has determined that the basing solution for the FAcT program will remain status quo at contract award in 2021. Ab-initio pilot training will be delivered in Moose Jaw and Southport. Ab-initio training for Air Combat Systems Officers and Airborne Electronic Sensor Operators will be delivered in Winnipeg. Are we going to see more simulation and less actual flying? And what are some of the key capabilities Canada is looking for with FAcT? The FAcT program will increase the overall amount of live flying and simulation for ab-initio Pilot, ACSO and AES Op training as increased output of personnel will of necessity drive an increase in the flying rate. Additionally, fundamental to FAcT is the intent to incorporate training from the operational training units where it makes sense to do so. This will likewise increase both simulated and live-fly training leading to Wings-standard. A comparison between the ratio of the current NFTC/CFTS programs and the FAcT program is not yet possible because the proposed training solutions from the Qualified Suppliers will differ in their approach to live flying and simulation. The FAcT program will ensure that Pilots, ACSOs and AES Ops move on to their Operational Training Units with sufficient immersion in live flying and simulation to provide them with appropriate skill sets in their respective fields. The importance of a solid foundation in the air environment for ab-initio military aircrew is imperative to ensure that our future Aircraft Captains, Mission Commanders and AES Op leads are appropriately equipped with the right practical skills for operational service. To learn more about the FAcT program and the next steps, visit https://www.tpsgc-pwgsc.gc.ca/app-acq/amd-dp/air/snac-nfps/ffpn-fact-eng.html. https://vanguardcanada.com/2019/11/11/fact-to-deliver-relevant-flexible-and-effective-aircrew-training-solution/

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  October 29, 2020 | International, Aerospace, Naval, Land, C4ISR, Security, Other Defence

  How coronavirus is permanently changing the defense industry's culture

  POLITICO spoke with managers at eight defense companies of varying sizes to see how their response to the pandemic has changed seven months in. JACQUELINE FELDSCHER From Zoom meetings to mental health check-ins during the work day to reconfiguring office spaces, most defense CEOs say the changes forced by the coronavirus will be permanent even after this crisis is over. The pandemic upended the industry in March, sending most employees who could telework home and requiring additional safety precautions for those who still had to go to the office. Companies quickly adopted best practices, such as frequent hand-washing, deep cleaning, distance between employees and eventually wearing masks. But over the past seven months, many companies have gone beyond these initial steps to protect the health of their employees and changed how they operate in other areas of their business. That includes adding benefits for the workforce, increasing the use of virtual communications and protecting supply chains. “We need to first calm down any sense of a focus on getting back to normal,” said Karl Hutter, the CEO of Click Bond, a supplier to defense companies. “There's not going to be a going back to normal.” A top challenge CEOs cited is trying to maintain a company's culture and community when at least some of the workforce is working from home full-time and it's still unsafe to gather for morale-building events such as anniversary celebrations or holiday parties. Industry leaders are also rethinking what their companies will look like in the future, including how many employees will continue to work from home full-time and how offices will be laid out. POLITICO spoke with managers at eight defense companies of varying sizes to see how their response to the pandemic has changed seven months in. Caring for the workforce The coronavirus pandemic has heaped stress on employees, many of whom are trying to juggle a full-time job with full-time child care amid a crisis that can make it anxiety-inducing to step outside. As a result, industry leaders almost unanimously said they have prioritized caring for employees' mental health in a new way to try to both give workers coping mechanisms and ease whatever stress they can. Click Bond, for example, has launched a pilot program in which about two dozen staff meet weekly for a 12-week program on wellness, including a focus on mindful movement and meditations. Hutter said he hopes the pilot, which is being used by many different demographics from younger workers to “hard-boiled tool makers,” will become a broader, long-term initiative. To help working parents, SAIC has given employees access to online tutoring help for their children to help ease the burden of working full-time while also helping children navigate the virtual classroom, said Amy Benson, SAIC's vice president of government affairs. United Launch Alliance and SAIC both established “leave banks,” which allow employees who won't use all of their vacation to donate that time off to colleagues who may need it. ULA CEO Tory Bruno said this will become a permanent benefit at his company once the pandemic is over. “It forces you to take on things like this, then you learn about them,” he said. “None of these benefits I just described will stop.” Companies have contracted with services to provide employees 24/7 virtual access to medical professionals for some health concerns. Managers are also making sure employees have access to health care. Huntington Ingalls Industries, for example, gave new hires health insurance immediately instead of making them wait 90 days, said Bill Ermatinger, the chief human resources officer at the shipbuilding company. Some companies are also regularly testing employees for Covid-19, both to keep facilities running by quickly diagnosing and quarantining any sick people and to ease the minds of those who report to work. “Employees have been very very grateful we're doing it,” said Mark Aslett, the CEO of Mercury Systems. “It's the only way to deal with employees at scale and get results back quickly enough to manage business continuity.” One of the top challenges for CEOs is making up for lost in-person interactions at company-wide events. Bruno has also gotten creative to try to replicate some of the morale boosting and team building that would come from a BBQ at a space launch, for example, by paying for employees to pick up meals from local small businesses. Hutter also stressed the importance of maintaining the culture of Click Bond, and is planning a “drive in theater event” for the company's annual holiday party as a way to safely gather and raise employees' spirits. Embracing virtual tools The inability to safely fly to visit vendors has forced businesses to get comfortable doing more virtually, which industry leaders say they will continue doing because it's more efficient. Anne Shybunko-Moore, the owner of GSE Dynamics, said her team can now check on the status of parts and address technical issues virtually. “I can see that impacting the way I do business going forward,” she said. “Vendor visits and building relationships are still critical in our supply chain, but maybe it's not necessary to fly to California. ... I could meet with eight vendors a day if I had to, virtually, all over the nation.” Some companies also had to overcome security concerns to use video meeting tools such as Zoom. United Launch Alliance did not allow employees to turn video on for virtual meetings before the pandemic out of a concern that something in the background, such as a model or a drawing of a rocket, would be either classified or controlled by international export laws. But after months of no in-person meetings, Bruno said he's instead issued workers rules for what can appear alongside them on camera. This is another practice that will continue after the pandemic is over, he said. “I started to worry about new employees never seeing their coworkers and feeling disconnected ... so we're enabling video everything and giving guidelines asking them to be careful about what's behind them,” he said. Planning for future business Heather Bulk, the CEO of Special Aerospace Services, said she is already knocking down walls at her company's Colorado headquarters to reconfigure the office to accommodate many who say they will feel safer coming back to work in a personal office with a door that closes. She also acknowledged she will need to update the break room, but is not yet sure what a space that is both communal and safe looks like now. “I like the idea that you can have 75 people in one room and they can all share a coffee pot and chat, but I don't foresee this pivoting back to the way it was in 2018 and 2019 for a while,” she said. “By making these changes and making them quickly, I'm able to move forward so in January of 2021, all these office changes should be up to date.” Bulk also said she is taking steps to bring more capabilities in-house, a trend she expects to see across the industry as CEOs work to mitigate disruptions at small businesses that produce critical parts. Many CEOs said they intend to keep some of the enhanced cleaning and distancing policies in place post-pandemic because they will keep the workforce healthy from diseases such as colds and the flu as well. As to what the future of telework looks like once it's safe to return to the office, CEOs are split over how much of their workforce is likely to remain at home. But most agree a hybrid model with some people in the office and some working from home at least part-time is likely to become the new normal. “Productivity has been good. It's been great in fact,” Bruno said. “If you're working a five-day work week, why can't one or two days be at home teleworking where you're not interrupted by a bunch of meetings?” https://www.politico.com/news/2020/10/28/coronavirus-changed-defense-industry-culture-433447