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  June 19, 2020 | International, Aerospace

  Indra moves forward as spain’s industrial coordinator and leader of the four key elements of the FCAS program

  Spain, June 16, 2020 - Indra, one of the world's leading global technology and consulting companies has made significant progress in its role as a national industrial coordinator in Spain and the leader of four of the eight core elements of the European Defence program NGWS / FCAS (Next Generation Weapon System / Future Combat Air System). Today, Indra signed the General Protocol that establishes the commitment given by Spanish companies to the Ministry of Defence in the program that will define the future of the Defence industry in Europe. The document sets out the responsibilities that the Ministry has assigned to each of these companies to provide Spain's Armed Forces with the required capabilities and at the same time to increase the sector's strategic autonomy. Ángel Olivares, Secretary of State, signed the agreement on behalf of the Ministry of Defence, while Ignacio Mataix, Managing Director for Transport and Defence signed on behalf of Indra. By signing this protocol, Indra strengthens its role as coordinator of Spanish industry within the program and as representative to the industrial coordinators appointed by France and Germany, Dassault and Airbus, respectively. In addition, this consolidates Indra's position as the Spanish leader of four of the eight core elements on which the program has been structured. The company leads the two main crossover elements (the system's Concept Study and the one related to coherence among other project elements), together with Dassault and Airbus. In addition, Indra is responsible for two of the technological elements: Sensors and the System of Systems, which involves the development efforts required to ensure that the different systems in each of the technological elements of the project can be managed as a whole, thus facilitating operations in Combat Cloud mode. Indra has made significant progress in its role as national coordinator and leader of four of the project's core elements. The company already signed an agreement with the coordinators from France (Dassault) and Germany (Airbus) to join the Joint Concept Study (JCS) that France and Germany started in February 2019. The contract that will make Indra a co-contractor together with Dassault and Airbus Germany is under final review, with the signing scheduled in the next few weeks. Since March this year, Indra has been negotiating its adherence to the ongoing contracts of Phase 1A Demonstrators, launched by France and Germany on February 20th, 2020 and related to the other program elements led by Indra. At that time, the Spanish Government signed a letter of intent to adhere to this new phase of the program and it is expected to be formalized at the end of July this year. In the meantime, the contractual amendments necessary for Spanish companies to join this Phase 1A will be made and expanded to other elements that were initially left out of the contract agreed by France and Germany; such as the Sensors element of the program. The signing of this Protocol with Spain's Ministry of Defence represents a new step forward in the implementation of the Spanish industrial strategy for the NGWS / FCAS program, the objective of which is to complete its incorporation as a full member on an equal footing with Germany and France. Indra's role as coordinator in the NGWS / FCAS program is intended to guarantee that Spanish industry reaches the maximum level of participation. Its development will generate significant know-how and added value for Spanish companies and will provide them with the opportunity to develop cutting-edge products, both in the Defence and Civil fields. Indra's appointment as the national industrial coordinator of the program ensures the maximum return of the program for Spanish industry and ownership of the technologies developed by its companies. Indra's commitment as the national coordinator in Spain is to ensure maximum return and for the NGWS/FCAS program to achieve the highest quality for Spanish industry as a whole (Defence and Civil). This all be achieved via business generation, development of its export capacity, creation of technologies that can also be used in the civil sphere and creation of high-value employment. Indra, as national coordinator, will represent the interests of Spanish industry as a whole, respecting the independence of the different companies involved in the project and strengthening its position in relation to companies from other participating nations. It is estimated that in the next decades the program will generate investments of billions of euros both in the development phase and later in the production phase. The first estimates indicate a potential economic value of the program of 300 billion euros in the next 40 years. About Indra Indra (www.indracompany.com) is one of the leading global technology and consulting companies and the technology partner for key business operations for clients worldwide. It is a leading global provider of proprietary solutions in specific segments of the Transport and Defence markets, and a leading company in digital transformation consulting and Information Technology in Spain and Latin America through its subsidiary Minsait. Its business model is based on a comprehensive range of proprietary products, with an end-to-end approach, high value and a high component of innovation. At the end of financial year 2019, Indra reported revenues of 3.204 billion euros, more than 49,000 employees, a local presence in 46 countries, and commercial operations in more than 140 countries. View source version on Indra: https://www.indracompany.com/en/noticia/indra-moves-forward-spains-industrial-coordinator-leader-four-key-elements-fcas-program

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  June 27, 2023 | International, Aerospace

  KONGSBERG to establish new depot for F-35 maintenance in Norway

  KONGSBERG is investing about NOK 500 million in the new depot, which will be part of the global maintenance solution and contribute to strengthened national capabilities and increased operational availability...

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  April 24, 2020 | International, Aerospace

  What To Watch For As A&D Companies Plan Future With COVID-19

  Michael Bruno Companies have good quarters and bad quarters, but rarely does a whole industry sound like it just got sucker-punched. That's what the next few weeks will be like in the aerospace and defense sector, and for sure there will be headlines describing industrial carnage as the industry gasps for air and works to recover after COVID-19. The truth is the aerospace and defense (A&D) supply chain suddenly is far too large for what is needed, maybe by a quarter or a third of excess capacity. As a result, quick or methodical cutbacks in manufacturing and services are expected throughout the syndicates that make airliners, business jets and other aircraft. As public companies report their latest quarterly financial results in late April and May, they will have to address the year ahead and offer insight into their response plans. Unfortunately, business as usual prior to COVID-19 is not expected until 2022 or later, according to numerous analysts and advisors. And that is just too long to carry extra financial costs, which means all levels will feel pain. “The COVID-19 decline is a serious risk for commercial OEM plays—Boeing, Spirit AeroSystems, Allegheny Technologies, Hexcel, Howmet Aerospace, Triumph Group and Carpenter Technology,” Cowen analysts say. “Aftermarket ‘relative safe havens' Honeywell International, Heico and TransDigm Group also face stiff near-term headwinds, with more serious risks at General Electric.” If OEMs and their Tier 1 and 2 suppliers are already cutting their workforces, slashing executive salaries and suspending shareholder returns—as dozens have announced since the novel coronavirus began sweeping through the U.S. in March—then it is easy to imagine that much lower tiers with their even thinner margins could face existential reckonings. “People who didn't plan for it were unreasonably naive,” asserts Avitas consultant Adam Pilarski, a longtime expert who espoused a bearish view on commercial aviation long before the Boeing 737 MAX crisis started gumming up business models. “There is no magic potion here. You will have less production.” While Pilarski's comment may come across as harsh, it accurately describes the depth of the coming paradigm shift for commercial aviation. Yes, perhaps it was too much to have asked OEMs and suppliers to model for a 95% collapse in passenger air traffic and two-thirds of large commercial aircraft fleets getting parked—including brand-new deliveries. But practically no one seemed to imagine simultaneous cuts to new orders, standing backlogs and aftermarket revenue streams. Indeed, Pilarski was one of the few who envisioned an environment with much less than the traditional 5% annual growth in air traffic. That is now changing: Airbus has revealed narrowbody and widebody production rate cuts of about a third, and Boeing is expected to follow suit any day. According to Credit Suisse analysts, such sudden rate changes will have a materially negative impact on the supply chain because the effect is exponential. “[The supply chain] will need to cut production by much more as Airbus consumes its inventories—for instance, potentially going to rate 20 on the A320 for some months and ramping up again to 40,” the Credit Suisse analysts say. Boeing's inventory—including roughly 800 MAXs that are backed up with its customers and supplier Spirit AeroSystems and are waiting to join its own fleets—is worse. Still, it is not that simple to look at customers such as Airbus and Boeing and draw a direct line to suppliers to guess their fate. While the vast majority of publicly traded A&D companies have shelved the 2020 forecasts they offered just weeks before, almost no one has outlined new plans. For one thing, few suppliers had even received change orders as of early April, Ken Herbert of Canaccord Genuity says. Here are three factors to watch for in earnings reports to discern how the supply chains will change. First, how much U.S. government aid will companies receive? This is a significant variable, and as of mid-April, we still did not know how much even sector leader Boeing will receive (presuming it does). “Most suppliers we have spoken with are still waiting for more clarity on the exact terms available under the CARES Act,” says Herbert, who has deep ties in the A&D supply chain. Meanwhile, many public companies have been able to tap short-term financing or debt markets to boost liquidity—a testament to their prior investment grades. Second, the supply chain has experienced robust vetting and stress-testing over the past decade. Did it work? Record growth, record mergers and acquisitions, and record private equity involvement have dramatically consolidated industry (for better or worse). Yes, it meant elimination of countless companies, and some smaller survivors remain stressed by technology investments and meager working capital accounts. But top-tier companies have been working to eliminate chokepoints and shore up weak links in their supply chains for the last few years, ironically as they sought to raise rates. Finally, many companies became less susceptible one way or another, especially through revenue diversification (see chart). Take the new Raytheon Technologies, the first supplier to rival its OEM customers in annual sales. Manufacturers elbowed into the aftermarket; commercial providers and defense suppliers tapped into each other's markets; and venture capitalists and billionaire competitors entered into and prodded new technology advances that legacy industry had resisted funding, among other trends. Will this lead to resilience? Some think so. “In many ways, the supply chain is now more mature, diversified and well-positioned to handle this economic downturn versus in 2001 and 2008,” says Alex Krutz, managing director at Patriot Industrial Partners, an advisory firm focused on operations and supply chain. “A large number of suppliers over this last decade have taken significant steps to ensure their long-term success.” There are sure to be industrial casualties as A&D faces its greatest business falloff in history. We should mourn the loss of skilled workers and devoted people who are forced to exit the sector, but there are still new aircraft to build. And there will be supply chains to do it. https://aviationweek.com/aerospace/manufacturing-supply-chain/what-watch-ad-companies-plan-future-covid-19