Les projets d’aérostats, militaires et civils, se multiplient

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  May 1, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  Defense industry shutdowns trend upward, but Lord is monitoring cash flow

  By: Aaron Mehta WASHINGTON — The Pentagon's top acquisition official sees positive signs for the defense-industrial base, but remains concerned that enough cash may not be flowing to the smallest, most vulnerable companies in order to keep them open in the wake of the coronavirus pandemic. Out of 10,509 defense-related companies tracked by the Defense Contract Management Agency, 93 are currently closed — a number that has improved by 13 since April 20, according to Ellen Lord, undersecretary of defense for acquisition and sustainment. Notably, the number of companies that have closed and reopened jumped by 73 since April 20 — “the first time we have seen reopening numbers larger than the number of closures” since the crisis began, Lord told reporters Thursday. Of the 11,413 companies tracked by the Defense Logistics Agency, 437 are closed, with 237 having closed and reopened. That's an improvement of almost 100 companies from the April 20 numbers. Lord credited a mix of factors for the improved numbers, including some states appearing to have reached their estimated peak in coronavirus cases and thus opening themselves up again; “really good proactive actions” by companies to create a hygienic space for work; and shared experiences from other companies who have found ways to keep working despite the pandemic However, Lord still expects the pandemic to impact major defense programs. On April 20, she warned that top programs could face an approximate three-month impact. She reiterated that timetable Thursday but stressed she is largely looking at a “slowdown” rather than a “delay” in major programs. “What we are seeing as a result of illness or inability to travel: We see efficiency issues. So we are not physically able to get contractors sometimes overseas to conduct inspections,” Lord explained. “So we have somewhat of a slowdown in our ability to accomplish tasks. We are finding workarounds for that, versus just saying we're delaying doing something. We do not look at delaying things; we are looking at working through the issues, which sometimes cannot be executed with the same efficiency we previously had.” “We think we're learning how to work in this new environment and get back up to rate, if you will, in areas where we didn't, but right now that is our best estimate and we are working, obviously, to minimize impacts,” she added. The Pentagon has pushed out $3 billion in increased cash flow under its coronavirus-related progress payment plan, which increased upfront payment to contractors from 80 percent of cost to 90 percent for large businesses, and from 90 percent to 95 percent for small businesses. The goal for department officials: getting cash into the hands of prime contractors, who can then quickly provide funds to their subcontractors and other small businesses, who Lord has consistently identified as the most vulnerable parts of the defense-industrial base. In both her April 20 press appearance and Thursday's event, Lord praised Lockheed Martin for publicly committing to give early payments to subcontractors in order to keep them open. On March 27, the company announced it would push $50 million down toward small companies most at risk; that has since increased to $450 million. But, Lord acknowledged, other companies have not been as open with where those Pentagon relief funds are going. That's something she'd like to see change. “I believe that the major primes are flowing down, they've committed. But I always like to trust, yet verify,” Lord said. “So I encourage all of those companies to be as transparent and forthcoming as they can be because we have a responsibility to the taxpayer, as well as the mid-tiers and the small companies, to make sure actions we take at the prime level do go down all the way through the chain.” When asked if she believes the primes are being transparent with her office about where their cash is going, Lord said, “I believe they are,” but added: “I need to rely on CEOs of major primes to come forth with that data.” https://www.defensenews.com/industry/2020/04/30/defense-industry-shutdowns-trend-upward-but-lord-watching-cash-flow/

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  February 16, 2021 | International, Aerospace

  Can UAM, Advanced Air Mobility Escape From The Hype Phase?

  Michael Bruno Stop me if you have heard this before: A whole new class of aircraft will democratize and revolutionize seemingly everything, starting with air travel. Will it be advanced air mobility or maybe very light jets? Aviation consultant Brian Foley recalls the latter while thinking of the former, since both are in the news recently. Disruptive paradigms are not a new threat to aviation, even this century, he notes. The Eclipse very light jet (VLJ) was intended to make airborne commuting more of a reality before it became a $1.5 billion “smoking crater in the ground.” In November, the U.S. Bankruptcy Court for the District of Delaware authorized the sale of Eclipse Aerospace and the Eclipse Aircraft project to AML Global Eclipse, backed by British businessman Christopher Harborne, for $5.25 million. Now some observers wonder whether urban air mobility (UAM) and advanced air mobility (AAM) will experience something similar. “There are two sides of the fence, and you're either on one side or another,” Foley pointed out in a recent edition of the Aerospace Executive Podcast with talent finder Craig Picken. “One side of the fence is that this is disruptive technology, and this will just change the whole landscape of how people travel in cities and between regional points. Some investors believe that, too, and they are putting some chips down on the different potential winners if this thing does come out on the other end and is successful. “There are others that are a little bit curious to see how this thing works,” Foley continued. “We've had helicopter service for years, which isn't all that much different. There are some concerns over noise—these things are overgrown drones.” Yes, billions of dollars are pouring into UAM/AAM, but is it actually significant yet? Silicon Valley is behind this, as are multiple other investors. But UAM/AAM represents a fraction of their investments, which are otherwise cast far and wide and could include UAM/AAM only as a one-off gamble. “Even though it seems like a big number to us, it's just pocket change to them,” Foley said. “They hope there is a return. Right now, there are as many arguments why it's going to succeed and won't succeed.” Such context is easy to forget amid the flurry of recent headlines, such as Joby Aviation's takeover of Uber Elevate and a reported public trading debut on the horizon. What is more, consultants continue to publish eye-catching reports about the market's value in coming decades. The latest from Deloitte consultancy and the Aerospace Industries Association (AIA) says the UAM/AAM sector could be worth $115 billion a year by 2035, employing more than 280,000 “high-paying” aerospace workers and generating an annual $20 billion in U.S. exports. “It's become increasingly apparent that this particular area has become more real,” AIA Vice President for Civil Aviation David Silver told Aviation Week ahead of the release of the Jan. 26 study. “This is very real technology that is just on the horizon, and there is no single silver bullet that is going to make it happen.” Deloitte's global and U.S. aerospace and defense leader, Robin Lineberger, concurred during the interview. The report pushes for a sustained, collaborative approach by the public and private sectors for electric vertical-takeoff-and-landing (eVTOL) aircraft to be widely accepted and adopted, sooner rather than later. “With the market poised to grow sevenfold between 2025 and 2035, it's important for U.S. policymakers and industries to cooperate now to ensure American leadership in this transformative emerging sector,” he said. Already, the global race for AAM leadership is intensifying, the groups said, and the U.S. faces strong competition from China, Germany and South Korea. As a result, the AIA-Deloitte document calls for streamlined eVTOL testing and certification as well as seamlessly integrating aircraft into the U.S. airspace system. Silver said it is important to shed light on the issue now, at the beginning of the Biden administration, as Washington is expected again to consider domestic infrastructure development as a key priority. The point is to broaden policymakers' horizons, he said, so that they wonder, “Are we even asking the right questions?” Still, other observers point out that—like almost everything in aerospace—paradigm shifts come slowly compared with other business sectors. Take the City-Airbus vision from the European giant: “Realistically, we will have to wait until the end of the decade to see more than a demonstrator,” Airbus Helicopters CEO Bruno Even acknowledged in a November press briefing. Even's boss, Airbus CEO Guillaume Faury, was even more clear-eyed days later in a separate online debate with an automotive CEO. Faury explained that eVTOL projects, such as the Vahana two-seater and the CityAirbus four-seater, should be seen primarily as low-cost demonstrators for future technology on commercial aircraft. Faury stressed: “There will be a market eventually, but profitability will be tricky at the start." https://aviationweek.com/aerospace/urban-unmanned-aviation/can-uam-advanced-air-mobility-escape-hype-phase

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  May 5, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

  DOD Seeking More COVID-19 Stimulus Funding, Esper Says

  Lee Hudson The Pentagon intends to request additional stimulus funding from Congress to support the defense industrial base in the wake of the COVID-19 pandemic, Defense Secretary Mark Esper says. The funding would go to small suppliers that have been hit hard by the spread of the novel coronavirus, Esper said May 4 during a Brookings Institution event. In recent weeks, Congress has passed about $3 trillion in emergency funding bills related to COVID-19. The Senate is in session this week, but the House has postponed votes. It is unknown when the next stimulus package will wrap up. “We anticipate the likely need for additional monies ... because we see again greater demand with regard to medical supplies and equipment,” Esper said. But House Armed Services Committee Chairman Adam Smith (D-Wash.) said the Pentagon should not receive stimulus funding from the Coronavirus Aid, Relief and Economic Security Act because the public health sector needs it more. Last week, Pentagon acquisition executive Ellen Lord said the Pentagon may have wiggle room to use some of its own operations and maintenance funding to pay for COVID-19-related efforts. Lord cautioned that the Pentagon may not have the fiscal flexibility to pay for new demands on the agency to battle COVID-19. “I will say that we continue to look at gaps in funding we have for specific issues. We continue to work with [the Office of Management and Budget] on that, and we will continue to talk to Congress about what we assess as our needs to really carry out our missions,” Lord said. The Defense Department (DOD) wants to continue supporting the defense industry by issuing progress payments to help with cash flow, Esper said. “DOD is not an island. We really rely heavily on the private sector, and so many of our private sector workforce has been affected by COVID-19,” Esper said. Some defense contractor personnel are infected with the virus, while others are working in states with shutdown orders and management does not want them coming into work because of tight quarters, he said. Separately, Esper is concerned the nation's additional debt incurred due to COVID-19 may result in smaller defense budgets during a critical time when China and Russia are strategic competitors of the U.S. The U.S. must recapitalize the nuclear triad and invest in hypersonic weapons, artificial intelligence, space capabilities and directed energy, Esper said. https://aviationweek.com/defense-space/budget-policy-operations/dod-seeking-more-covid-19-stimulus-funding-esper-says