Back to news

October 29, 2020 | International, Aerospace

Raytheon laying off 20,000 amid commercial aviation slide

WASHINGTON ― Raytheon Technologies is cutting 15,000 staff and 4,000 contractor positions, largely at the company's Pratt & Whitney and Collins Aerospace divisions, due to decreased commercial aerospace sales from COVID-19 pandemic, CEO Greg Hayes said Tuesday on the company's earnings call.

The Waltham, Mass., aerospace giant is the latest company to announce losses since the pandemic has sent commercial aerospace companies reeling, costing them tens of thousands of jobs and millions in lost profits. Hayes projected the market segment wouldn't get a sharp rebound, but instead see “a long, slow recovery,” over several years.

“We don't expect commercial air traffic to return to 2019 levels, until at least 2023. And that's of course depending upon the timing of a widely distributed vaccine. In the near term, we expect a gradual recovery of commercial air traffic particularly given the recent spike in global cases [of coronavirus],” Hayes said.

“As you know, we set aggressive targets in the first quarter to reduce costs by about $2 billion and to take actions to conserve about $4 billion in cash, making difficult but necessary actions to reduce headcount,” Hayes said.

The ongoing personnel actions will reflect a 20 percent cut at both divisions, and include both temporary furloughs and a hiring freeze. In its merger with United Technologies in April, the company already planned to cut 1,000 jobs, mostly on its corporate side, Hayes said.

The company is also reducing its infrastructure, which takes up 31 million square feet, by more than 20 percent ― beyond an earlier 10 percent goal for the merger. Hayes said that even after the pandemic subsides, it would continue to employ increased remote-work arrangements as part of a multiyear strategy to slash overhead.

An announced aerospace-parts facility in western North Carolina is still in the works, as Hayes said the company would need the capacity when demand returns. “I think by the time this comes online in late 2023, we should see a kind of return to normalcy in commercial aerospace, and Pratt will be well positioned with a much lower cost, much more automated production facility,” he said.

According to third-quarter numbers posted by Raytheon, Pratt & Whitney posted a $615 million loss in operating profit for the quarter versus a $520 million profit for the same period in 2019. Pratt's military sales rose 11 percent, driven in part by production of the F-35 joint strike fighter.

Collins managed to post an operating profit of $526 million for the quarter, but the number marked a 58 percent drop over the prior year.

Raytheon's commercial aftermarket business fell 51 percent at Pratt & Whitney and 52 percent at Collins Aerospace, while the company's military side was up.

Both Raytheon's intelligence and space and missiles and defense segments offset some of the losses, as the company reported sales of $14.7 billion and an operating profit of $434 million for the quarter.

Raytheon executives were upbeat on the defense business's backlog of more than $70 billion, and for the quarter, the segment posted $928 million in classified bookings.

Correction: An earlier version of the story misstated the timing of the job cuts. They are ongoing, and most took place prior to Tuesday's call.

https://www.defensenews.com/2020/10/27/raytheon-to-lay-off-20000-amid-commercial-aviation-slide/

On the same subject

  • How the US Air Force is assembling its northernmost F-35 squadron amid a pandemic

    May 13, 2020 | International, Aerospace

    How the US Air Force is assembling its northernmost F-35 squadron amid a pandemic

    By: Valerie Insinna WASHINGTON — The COVID-19 pandemic could make it more difficult for the U.S. Air Force's newest F-35 squadron to organize its personnel and jets on schedule. On April 21, the 356th Fighter Squadron at Eielson Air Force Base, Alaska, became the service's northernmost fighter squadron after receiving its first two F-35s. Pilots began flying those jets for training three days later, and another four F-35s on loan from Hill Air Force Base in Utah flew to Alaska on April 27. But a couple key challenges could hamper the assemblage of the new squadron, said Col. Benjamin Bishop, commander of the base's 354th Fighter Wing. “We're actually on timeline,” he told Defense News in an exclusive interview on April 28. “We have the pilots and maintainers already here to support operations throughout the summer. However, as you know, the Department of Defense has put a stop-movement order through [June 30], and that is something we're working through on a case-by-case basis.” Under the current order, pilots and maintainers who are moving through the training pipeline have been granted a blanket exception to transfer to Eielson. But more experienced pilots, maintainers and support personnel coming from an operational base like Hill Air Force Base will need to receive an exception. Getting additional F-35s to Eielson could also be an obstacle, as Lockheed Martin assesses whether it must slow down deliveries of the F-35 due to disruptions to its supply chain. In a statement to Defense News, Lockheed spokesman Brett Ashworth could not say whether the company was on track to deliver F-35s to Eielson on schedule. “Lockheed Martin continues to work with our suppliers daily to determine the impacts of COVID-19 on F-35 production,” he said. “We are analyzing impacts at this time and should have more detail in the coming weeks.” If the coronavirus pandemic delays the pace of F-35 deliveries to Eielson, the squadron will have to mitigate the shortfall in jets, Bishop said. “Currently, we're at a good pace on the road to readiness for our F-35 program here, and we'll continue to adapt and adjust to bring this mission capability to its full potential in the Indo-Pacific theater,” he noted. Despite COVID-19 and the potential logistical challenges involved in sending people and F-35s to Eielson, day-to-day training operations have continued as normal, said Col. James Christensen, 356th Fighter Squadron commander. Having six F-35s on base allows maintainers to use the jets for training while also maximizing flight hours for the eight pilots currently in the 356th. “We still do the mission the way we always have. We have the masks and the wipe procedures and social distancing,” Christensen said. “So [we're] being creative but still being able to get the mission done.” There are strategic benefits to being the U.S. Air Force's northernmost fighter squadron, starting with access. With support from an aerial refueling tanker, the F-35s at Eielson can reach and target any location in Europe or the Asia-Pacific, Bishop said. And even the harsh climate of Eielson has its perks. It's a short flight away from the Joint Pacific Alaska Range Complex, the Defense Department's largest instrumented training range, with 77,000 square miles of airspace, according to the 354th Fighter Wing. “The F-35 is going to be able to fly in that airspace, but they're not going to be alone,” Bishop said. F-35s training in that area will regularly be joined by F-22s based at Joint Base Elmendorf-Richardson in Anchorage, as well as the F-16s in Eielson's 18th Aggressor Squadron that simulate enemy combat jets. “You're going to see amazing fifth-generation tactics and integration tactics emerge,” he said. Russia is investing in its Arctic infrastructure, and the U.S. military must make its own improvements to how it operates from and trains in the region, said Gen. Terrence O'Shaughnessy, who leads U.S. Northern Command and the North American Aerospace Defense Command. “It's great to see some of the additional forces that are going in, whether it's the F-35s going to Eielson, whether it's the work of the Coast Guard to develop icebreakers,” he said during a May 4 event. “These are all relevant things for us to be able to operate in the Arctic. And that is absolutely, to me, key to our ability to defend ourselves.” As the 356th stands up and becomes combat-ready, it will participate in the next Red Flag-Alaska, a multinational air-to-air combat training exercise slated to be held this August. The squadron is also looking for opportunities to deploy around the Asia-Pacific so that pilots can acclimate themselves to the long geographical distances that characterize the region, Christensen said. “Everyone is excited just to have F-35s here because of the awesome training we can do, but we're also thinking about at some point we have to project this air power out into the Indo-Pacific theater as a combat force. And transitioning everyone, including the wing and including [Pacific Air Forces] — they all have to adjust the mission of Eielson,” he said. Unlike other fighter bases, which usually swap out existing aircraft of existing squadrons with new jets, the two F-35 squadrons coming to Eielson aren't replacing anything, and infrastructure needs to be built to accommodate the anticipated growth in both people and aircraft. When the first members of the 356th Fighter Squadron arrived on base in July 2019, Eielson was home to about 1,750 active-duty personnel, Bishop said. By December 2021, that number is expected to double, with the addition of about 1,500 airmen. In that time, 54 F-35s will be delivered to the base for a total of two squadrons — a notable increase from the 30 F-16s and KC-135s previously at Eielson. An estimated $500 million will be spent on military construction to support the buildup at Eielson, including new operations buildings, a simulator building, heated hangars and other maintenance facilities, and a new cafeteria. A total of 41 facilities will be either built or refurbished with that funding, with 29 of those projects finished and others still under construction to support a second F-35 squadron, Bishop said. And everything — from constructing new facilities to maintaining runways — is tougher in the subzero temperatures of the Arctic. “Early on in this job, I learned that there are two seasons in Alaska,” Bishop said. “There's winter and construction season, with the former a lot longer than the latter. From a beddown perspective, how you put your construction plan together, you have to maneuver around that season.” “In order to maintain efficiency of fighter operations up here, one of the things we did is we built walled weather shelters for our aircraft, so all of our aircraft are actually housed in weather shelters," he added. "That's not necessarily for the aircraft. That's more for the maintainers because having that insulated and heating facility, now you can do maintenance around the clock.” Corrected at 5/12/20 at 2:53 p.m. with the correct size of the JPARC, which was recently expanded to 77,000 square miles of airspace. https://www.defensenews.com/smr/frozen-pathways/2020/05/11/how-the-us-air-force-is-assembling-its-northernmost-f-35-squadron-amid-a-pandemic/

  • The Pentagon is battling the clock to fix serious, unreported F-35 problems

    June 12, 2019 | International, Aerospace, Security

    The Pentagon is battling the clock to fix serious, unreported F-35 problems

    By:Valerie Insinna WASHINGTON — Over the past several years, U.S. Defense Department leaders have gone from citing technical problems as their biggest concern for the F-35 program to bemoaning the expense of buying and sustaining the aircraft. But the reality may be worse. According to documents exclusively obtained by Defense News, the F-35 continues to be marred by flaws and glitches that, if left unfixed, could create risks to pilot safety and call into question the fighter jet's ability to accomplish key parts of its mission: F-35B and F-35C pilots, compelled to observe limitations on airspeed to avoid damage to the F-35's airframe or stealth coating. Cockpit pressure spikes that cause “excruciating” ear and sinus pain. Issues with the helmet-mounted display and night vision camera that contribute to the difficulty of landing the F-35C on an aircraft carrier. These are some of the problems with the jet that the documents describe as category 1 deficiencies — the designation given to major flaws that impact safety or mission effectiveness. Thirteen of the most serious flaws are described in detail, including the circumstances associated with each issue, how it impacts F-35 operations and the Defense Department's plans to ameliorate it. All but a couple of these problems have escaped intense scrutiny by Congress and the media. A few others have been briefly alluded to in reports by government watchdog groups. But the majority of these problems have not been publicly disclosed, exposing a lack of transparency about the limitations of the Defense Department's most expensive and high-profile weapons system. These problems impact far more operators than the U.S. Air Force, Marine Corps and Navy customer base. Eleven countries — Australia, Belgium, Denmark, Italy, Israel, the Netherlands, Norway, Japan, South Korea, Turkey and the United Kingdom — have all selected the aircraft as their future fighter of choice, and nine partner nations have contributed funds to the development of the F-35. Taken together, these documents provide evidence that the F-35 program is still grappling with serious technical problems, even as it finds itself in a key transitional moment. And the clock is ticking. By the end of 2019, Defense Department leaders are set to make a critical decision on whether to shut the door on the F-35's development stage and move forward with full-rate production. During this period, the yearly production rate will skyrocket from the 91 jets manufactured by Lockheed Martin in 2018 to upward of 160 by 2023. Generally speaking, the department's policy calls for all deficiencies to be closed before full-rate production starts. This is meant to cut down on expensive retrofits needed to bring existing planes to standard. The F-35 Joint Program Office appears to be making fast progress, but not all problems will be solved before the full-rate production decision, said Vice Adm. Mat Winter, the Defense Department's F-35 program executive. “None of them, right now, are against any of the design, any of the hardware or any of the manufacturing of the aircraft, which is what the full-rate production decision is for,” he told Defense News in an interview. “There are no discrepancies that put at risk a decision of the department to approve us to go into full-rate production.” Nine out of 13 problems will likely either be corrected or downgraded to category 2 status before the Pentagon determines whether to start full-rate production, and two will be adjudicated in future software builds, Winter said. However, the F-35 program office has no intention of correcting two of the problems addressed in the documents, with the department opting to accept additional risk. Winter maintains that none of the issues represent any serious or catastrophic risk to pilots, the mission or the F-35 airframe. After being contacted by Defense News, the program office created two designations of category 1 problems to highlight the difference between issues that would qualify as an emergency and others that are more minor in nature. “CAT 1-As are loss of life, potential loss of life, loss of material aircraft. Those have to be adjudicated, have to be corrected within hours, days. We have no CAT 1-A deficiencies,” Winter said. Instead, the deficiencies on the books all fall under category 1B, which represents problems “that have a mission impact with a current workaround that's acceptable to the war fighter with the knowledge that we will be able to correct that deficiency at some future time,” Winter added. Greg Ulmer, Lockheed Martin's vice president for the F-35 program, said currently fielded F-35s are meeting or exceeding performance specifications. “These issues are important to address, and each is well understood, resolved or on a path to resolution," he said. "We've worked collaboratively with our customers, and we are fully confident in the F-35's performance and the solutions in place to address each of the items identified.” Full article: https://www.defensenews.com/air/2019/06/12/the-pentagon-is-battling-the-clock-to-fix-serious-unreported-f-35-problems/

  • Le Rafale toujours en lice pour le remplacement des F-16, malgré une offre "hors procédure"

    June 26, 2018 | International, Aerospace

    Le Rafale toujours en lice pour le remplacement des F-16, malgré une offre "hors procédure"

    C'est toujours le flou autour des offres pour le remplacement des F-16. Pour rappel, trois avions sont sur la table du gouvernement : le F-35 américain, l'Eurofighter Typhoon européen et le Rafale français qui lui, est "hors procédure" — c'est-à-dire que l'offre n'a pas été faite dans le cadre de l'appel d'offres officiel. Une situation qui a déjà donné naissance à quelques cacophonies au sein du gouvernement, le ministre de la Défense voulant privilégier les offres rendues en bonne et due forme, et le Premier laissant entendre que l'offre française (plutôt alléchante) serait examinée, malgré le fait qu'elle n'ait pas respecté les procédures. Et quatre mois avant que le gouvernement ne doive rendre sa décision, rebelote. Le ministre de la Défense Steven Vandeput (N-VA) a déclaré dans dans les pages du Morgen que la proposition de la France pour le remplacement des F-16 était exclue, "On ne peut pas faire comme si les Français faisaient partie de la procédure", affirme Steven Vandeput , vendredi. La décision est bien entendu à prendre au sein du gouvernement et le ministre a toujours dit qu'il y présenterait les éléments concernant ce dossier, a indiqué vendredi le cabinet de Steven Vandeput (N-VA), tout en rappelant que les Français n'ont pas introduit leur offre dans le cadre de la procédure officielle. Paris toujours en lice Sa sortie dans le Morgen a rapidement conduit le Premier ministre Charles Michel à réagir en soulignant que l'offre de Paris était toujours en lice et que la décision finale serait "prise au sein du gouvernement et nulle part ailleurs". "L'offre des français est sur la table du gvt. Nous devons encore discuter. Les discussions ne sont pas closes. Il y a toujours trois candidats constructeurs, deux dans la procédure classique et une autre proposition émanent des français", a alors précisé Steven Vandeput à l'entrée du conseil des Ministres Interviewé sur Radio 1, M. Vandeput a précisé qu'il ne voulait pas envoyer un message au Premier ministre avec son intervention dans la presse, mais uniquement "mettre les points sur les i" après que le constructeur français Dassault - qui produit le Rafale - a lancé une large campagne de communication sur son offre. Sur la question d'un contexte géopolitique européen, avec le projet d'une Europe de la Défense qui pourrait influencer le choix du gouvernement, le ministre de l'Intérieur Jan Jambon répond : "Ce projet là est très important, mais il est pour l'horizon 2045. D'ici là, nous devons acheter de nouveaux avions et on ne peut pas attendre." "On n'achète pas des bicyclettes, il faut tout analyser : le prix, les éléments techniques... On doit maintenant envisager toutes les options, même celle du prolongement éventuel des F-16" a quant à lui déclaré le vice-Premier Didier Reynders. https://www.rtbf.be/info/belgique/detail_remplacement-des-f-16-la-proposition-francaise-est-exclue-pour-steven-vandeput?id=9952799

All news