Leonardo plans upgrades for its UK operations, as leaders meet

On the same subject

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  April 1, 2020 | International, Aerospace

  Lockheed Signals Change Is Coming With New CEO

  Michael Bruno Lockheed Martin Chairman, CEO and President Marillyn Hewson became the prime example of how to stumble into the corner office of the Pentagon's top contractor and still provide laudable business results. Now, as she hands off the reins to an enigmatic successor, Lockheed stakeholders hope the uncertainty ahead will be just as lucrative. On March 16, the Bethesda, Maryland-based prime—the largest contractor to the U.S. Defense Department by annual sales—surprised many followers with the news that current Lockheed board member James “Jim” Taiclet, Jr. will become CEO and president on June 15, while Hewson becomes executive chairman. Lockheed also promoted Frank St. John, current executive vice president of the company's Rotary and Mission Systems (RMS) division, to become chief operating officer (COO)—a role that Hewson technically held last, and briefly, before her January 2013 appointment as chief executive. Before that, the COO role was mostly held by Chris Kubasik prior to his downfall at Lockheed. Stephanie Hill, now senior vice president for enterprise business transformation, was appointed to succeed St. John as executive vice president for RMS. These appointments also are effective June 15. Hewson is 66 years old and Taiclet is 59. The company, which does not have a retirement rule, had not announced a formal transition plan or successor process. Nevertheless, industry insiders were watching movements—such as St. John's rise and recent board appointments—and analysts said they assume the transition was planned before the ongoing COVID-19 crisis erupted. While the announcement was a surprise, the timing was not—due to Hewson's age and the fact that Lockheed ended 2019 with a record $144 billion backlog of work and a stock price that has more than tripled under Hewson, including the recent COVID-19-related pullback. Still, many observers are intrigued by the selection. “While Marillyn's retirement has been in the cards for a while, we were not expecting Lockheed to go outside the company for its new CEO,” say analysts at Vertical Research Partners. “Taiclet has an impressive pedigree based on his resume, but from an A&D perspective, he is an unknown quantity. . . . But with Marillyn sticking around as chairman, and a very experienced cohort of senior Lockheed managers, we are not expecting there to be any revolutionary change as a result of this appointment.” Cowen analysts also noted that St. John's appointment as COO further bookends Taiclet with experienced Lockheed managers. St. John, 53, joined Lockheed more than 30 years ago and as COO is naturally positioned as a potential future CEO, analysts say. Taiclet is currently chairman, president and CEO of American Tower, a real estate investment holding company and owner/operator of wireless and broadband communications networks, where he has held the executive reins since 2003. He joined that company in 2001 and, according to Lockheed, is credited with guiding American Tower's transformation from a U.S.-centric focus to a multinational business outlook. Analysts said he also was central in leading mergers and acquisitions as part of the company's expansion. American Tower announced an immediate replacement for Taiclet but said he will remain chairman and an advisor through June 14. Taiclet previously served as president of Honeywell Aerospace Services and before that was vice president for engine services at the Pratt & Whitney division of United Technologies (UTC). He also worked as a consultant at McKinsey & Co., specializing in telecommunications and aerospace strategy and operations. He is a retired U.S. Air Force pilot and Persian Gulf War veteran. Loren Thompson, a Lexington Institute consultant to Lockheed, says Hewson's selection of Taiclet seems calculated to continue her emphasis on tight financial management and good customer relations while positioning the leading prime for a changing demand environment. “That environment will be characterized by two shifts from previous years,” Thompson writes. “First, the defense budget will enter a flat to declining period very different from the spending increases of the early Trump [administration] years. Second, the preference of military customers for nontraditional suppliers who think like entrepreneurial enterprises rather than government contractors will continue to grow.” Hewson's selection of Taiclet also is telling because she has won the respect of many industry insiders, analysts and advisers. While unplanned, Hewson's tenure as CEO was deemed successful by most. “Hewson's tenure is known for operational execution with such programs as the F-35, while having a successful oversight in maintaining key businesses—such as in the evolving area of space with wins such as Next-Gen OPIR and GPS IIIF,” say Jefferies analysts. Company sales grew at a 5% compound annual growth rate from $45.4 billion in 2013 to an expected $63.3 billion this year. Taiclet's takeover sounds to many like more of the same—but different. “This is the first time Lockheed Martin has promoted someone who did not rise through the corporation to be president and CEO,” writes Capital Alpha Partners analyst Byron Callan. “We find it intriguing that he has a commercial background and wonder if that's not a different direction the company starts to explore in 2020-25.” https://aviationweek.com/defense-space/supply-chain/lockheed-signals-change-coming-new-ceo

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  July 9, 2018 | International, Aerospace

  Germany’s choice for a Tornado replacement could undermine NATO

  By: Dan Goure It is clear to any reasonable observer that the state of the NATO alliance is not good. Even as a candidate, Donald Trump made it clear that he desired to see the other alliance members contribute more to the common defense. As President, Mr. Trump shifted from a request to a demand that NATO countries meet their self-imposed target of spending 2 percent of their individual gross domestic product on defense. He recently returned to this theme, possibly previewing his message to the NATO summit scheduled for later in July. “Germany,” he complained, “has to spend more money. Spain, France. It's not fair what they've done to the United States.” In February, the German parliament's military commissioner published a devastating report on the German military's lack of readiness. At the end of 2017, no submarines and none of the Luftwaffe's 14 large transport planes were available for deployment due to repairs. Much of the rest of the German military's equipment, including fighter jets, tanks and ships, are outdated and in some cases not fully operational because of a lack of spare parts. As a result, fighter pilot training has had to be curtailed because of the number of aircraft unavailable due to maintenance issues. The new head of the Luftwaffe, Lt. Gen. Ingo Gerhartz, confirmed the military commissioner's findings. He publicly admitted that his service is “at a low point. Aircraft are grounded due to a lack of spare parts, or they aren't even on site since they're off for maintenance by the industry.” This lack of investment in critical military capabilities has effected NATO's nuclear deterrent. Germany's fleet of nuclear-capable Tornado aircraft are so old and obsolete that they will have to be retired beginning in 2025. Without a timely replacement, Germany will be out of the nuclear deterrence mission. Any new aircraft being proposed to fill the role played by the Luftwaffe's Tornados must meet an extremely stringent set of safety and operational standards. Because this would be a German aircraft deploying a U.S. nuclear weapon, there are two sets of standards at play. Experts familiar with certifying a new aircraft as nuclear-capable say the process generally takes an average of six to eight years and costs hundreds of millions of dollars. The obvious answer is for the Luftwaffe to acquire some number of F-35A Joint Strike Fighters to replace the Tornado for the nuclear mission. The U.S. Air Force and the F-35 team, led by Lockheed Martin, are currently in the early stages of the nuclear certification process. Italy and the Netherlands are acquiring the F-35 and will certainly use some as dedicated nuclear-delivery platforms. Airbus and the Eurofighter consortium have proposed selling Germany additional Typhoon aircraft to replace the Tornados. The German government has asked Washington if it would accept a nuclear-capable and -certified Typhoon Eurofighter as a Tornado replacement. The Luftwaffe currently operates some 130 Typhoons for air defense. There are two problems with this solution. First, given what it would take to design, develop and test a nuclear-capable Typhoon, much less the six to eight years required for certification, it is too late to go with this option and meet the 2025 date for Tornado retirement. Second, even it could be certified to carry the B-61, the Typhoon will not be able to perform the mission in the high-density, advanced air-defense environment that is already blanketing much of Europe. Delivery of a gravity bomb requires the ability to fly over a heavily defended target, and to do so on the first day of a war. Virtually all senior air force leaders in NATO agree that fourth-generation fighters, including the Typhoon, are not survivable without an extensive and protracted campaign to roll back the air defense threat. Only a fifth generation platform such as the F-35 can beat today's air defenses, much less those that will emerge over the next several decades. The German inquiry regarding the acceptability to Washington of a nuclear-certified Typhoon is really motivated by industrial politics. Germany and France hope to begin development of a fifth-generation fighter ― a project that will take at least 15 years. But if Berlin acquires even a limited number of F-35s, this could undercut that objective. In fact, the head of Airbus recently gave an interview in which he declared that “as soon as Germany becomes an F-35 member nation, cooperation on all combat aircraft issues with France will die.” The German government could not have picked a worse time to play industrial politics with its solemn obligation to participate in the alliance's nuclear deterrence mission. President Trump already believes that most of the NATO allies, including Germany, are not paying their fair share for the common defense. An attempt by Germany to shoehorn a Eurofighter variant into the nuclear weapons delivery mission is another signal that Berlin is just not serious about meeting its alliance obligations. Daniel Gouré is a senior vice president with the Lexington Institute. He worked in the Pentagon during the administration of President George H.W. Bush, and he has taught at Johns Hopkins and Georgetown universities as well as the National War College. https://www.defensenews.com/smr/nato-priorities/2018/07/06/germanys-choice-for-a-tornado-replacement-could-undermine-nato/

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  September 13, 2023 | International, Land

  Sweden seeks details on missile systems to upgrade Amphibious Corps

  A contract notice is expected to follow about June 2024.