Podcast: What Next For Boeing?

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  September 15, 2020 | International, Aerospace

  Full COVID-19 Recovery For F-35 Deliveries Pushed To 2022

  Steve Trimble Lockheed Martin F-35 deliveries postponed by the impact of the COVID-19 pandemic on the supply chain will not fully recover by the end of 2021, a company executive told Aerospace DAILY. In June, Lockheed announced that 18-24 F-35s in production Lot 12, which are scheduled for delivery in 2020, will be delayed, reducing the overall delivery target to 117 to 123 jets this year. Although Lockheed's final assembly plant in Fort Worth is now at full operations, the impact on the supply chain will drag out the recovery for another year, said Michelle Evans, executive vice president of Lockheed's Aeronautics business. “We're still looking somewhere between 15-20 aircraft that we will be behind by the end of the year,” Evans said in an interview. “It is going to take a while for the supply chain and, thus, Lockheed Martin to recover. So it will take us longer than next year. We'll probably be staring at two years to recover those jets.” Lockheed's supply chain is in recovery while the company continues negotiating separate deals with the F-35 Joint Program Office (JPO) for the next three years of airframe production and converting the annual sustainment contracts into a multiyear performance-based logistics (PBL) agreement. In October 2019, the JPO and Lockheed agree to an economic order quantity of 478 aircraft for lots 12-14, which are delivered from 2020 to 2022. The agreement includes a firm order from the U.S. government for Lot 12 aircraft, with priced options for Lots 13 and 14 resulting in an overall total of 291 F-35s. The international customers added orders for 187 aircraft under a related, three-year production order. A similar approach will be followed for the U.S. and international orders in Lots 15-17, which will include the first jets to receive upgraded Technical Refresh-3 hardware, Evans said. Separately, the JPO and Lockheed are continuing to negotiate a long-term PBL to sustain the F-35s, with an overall goal to reduce the cost per flight hour of the F-35A to $25,000 by 2025. Lockheed sees an opportunity to reduce sustainment costs by $18 billion or more over the term of the PBL, Evans said. Lockheed expects to make an initial investment of $1.5 billion in cost-saving projects once the deal is signed. https://aviationweek.com/shows-events/afa-air-space-cyber-conference/full-covid-19-recovery-f-35-deliveries-pushed-2022

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  July 8, 2020 | International, Aerospace, Naval

  House Appropriators Add 12 F-35s, Boost Weapons Spending, But…

  "To us, it means that there is going to be much more tension and debate over future modernization programs as flat investment will not enable DoD to recapitalize in a timely and militarily relevant pace," says defense analyst Byron Callan. By COLIN CLARKon July 07, 2020 at 7:38 PM WASHINGTON: House appropriators made their first cut at the annual defense spending bill today, approving spending $3.5 billion below the Trump Administration's request — although lawmakers added a substantial $4.1 billion for several weapons systems, including 12 additional F-35s. Overall, the House Appropriations Committee trimmed $3.5 billion from the Trump Administration's 2021 budget request while still fully paying for a 3% pay raise and force structure increases to all but the Marines, who will lose 2,100 people. The appropriators approval of an increase in F-35 buys makes it unlikely the House Armed Services Committee's skepticism of the Joint Strike Fighter program will prevail. The HASC added no more planes above the administration request for 79 aircraft of all three models and docked at least a score of supporting line items by a total of $561 million. By contrast the SASC added $1.36 billion to buy more Air Force F-35As, Marine F-35Bs, and Navy F-35Cs, plus spare parts. In other bump ups, the HAC funds 11 V-22 aircraft, adding $1.1 billion to buy two more than the request. It also adds three P-8A Poseidon aircraft for the Navy Reserve, three more than the request for an additional $510 million. And echoing the House authorizing committee's support, the HAC added 16 MQ-9 Reaper unmanned aerial vehicles to the Pentagon request, for a cost of $344 million. But making sense of the HAC-D bill is difficult because it's not yet clear what and where they've cut, as veteran defense stock analyst Byron Callan notes. It all gets complicated by the CARES Act and adjustments to contracts that have been made. Overall, Callan says, it looks as if fiscal 2020 — last year — may have been the peak of whatever Trump defense boost there has been. But it's all uncertain. “Absent the pandemic budget impacts, however, the markups so far suggest that FY20 was a peak for DoD investment. This does not mean investment is at the peak and headed fast downhill in FY21 and beyond,” Callan writes. “To us, it means that there is going to be much more tension and debate over future modernization programs as flat investment will not enable DoD to recapitalize in a timely and militarily relevant pace.” https://breakingdefense.com/2020/07/house-appropriators-add-12-f-35s-boost-weapons-spending-but/

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  September 1, 2024 | International, Aerospace

  Exclusive: Embraer taps Oliver Wyman to help it in US defense market, eyeing C-390 sales