August 17, 2021 | International, Aerospace
Red 6 lands contract to put augmented reality on a T-38 training jet
After integration on a T-38 is complete, a fourth-gen fighter will be next in line.
April 30, 2020 | International, Aerospace
By: Valerie Insinna
WASHINGTON — Boeing will have to pay $168 million out of pocket to cover increased costs on the VC-25B Air Force One replacement program, the company said Wednesday.
Boeing attributed the overrun to “engineering inefficiencies” caused by the impact of COVID-19, but Chief Financial Officer Greg Smith said the program remains on schedule with a projected delivery of the first VC-25B in 2024.
However, Boeing's quarterly report to the Security and Exchange Commission noted future risk to the program's cost and schedule as a result of the engineering challenges. “We believe these inefficiencies will result in staffing challenges, schedule inefficiencies and higher costs in the upcoming phases of the program,” the company stated in the report.
It was not immediately clear how work on the VC-25B program had been disrupted.
“That charge was really associated with COVID-19,” Smith told reporters in an April 29 phone call. “As we have folks working virtually — particularly on the engineering side — as well as that's gone, we certainly experienced some inefficiencies that has caused us to re-evaluate our estimates to complete those efforts. And that's essentially what you saw today in our results and the charge associated with that.”
Smith added that although the program team has done a “good job” of managing the program in the face of changes caused by the novel coronavirus pandemic and is “executing very well on many fronts,” Boeing could not mitigate the added cost to the program this financial quarter.
Air Force acquisition executive Will Roper said he spoke with Boeing Defense CEO Leanne Caret last night about the problem, but because the issue was “late breaking,” he referred detailed questions to the program office.
On Wednesday night, the Air Force released a statement that — like Boeing — attributed the cost increase to “engineering inefficiencies.”
Just two weeks ago, Roper praised the progress of the program, which used virtual tools to complete its critical design review in March and wrap up a modification readiness review in April. At the time, the program was on schedule with no disruptions due to COVID-19, he said then.
The Air Force One replacement drew considerable attention in 2016 after then-President-elect Donald Trump tweeted that the program was too expensive and should be cancelled unless the cost—then projected as more than $4 billion—came down. In 2018, the Air Force awarded Boeing a $3.9 billion fixed-price contract to modify two 747s into the VC-25B configuration.
" There has not been an increase to the $3.90B firm-fixed price contract with Boeing or the $5.3B VC-25B total acquisition cost," said Air Force spokeswoman Ann Stefanek.
Although the total price of the program is estimated to hit $5.3 billion once ancillary costs such as new hangars and revised technical manuals are included, the fixed-price ceiling on the $3.9 billion deal ensures that Boeing will have to pay for any cost growth incurred while building the two new Air Force Ones.
In February, Boeing began making structural changes to two Boeing 747s at its facility in San Antonio, Texas — paving the way for those jets to become VC-25Bs. The jets will also receive upgrades including enhanced electrical power, specialized communication systems, a medical facility, a customized executive interior and autonomous ground operations capabilities.
“As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said.
August 17, 2021 | International, Aerospace
After integration on a T-38 is complete, a fourth-gen fighter will be next in line.
May 13, 2020 | International, Aerospace
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/
August 13, 2019 | International, Aerospace
By Michael Bruno As a multi-industrial manufacturer, Textron sells many transportation vehicles, from military helicopters to UAVs and even snowmobiles and recreational four-wheelers. But a new corporate review may indicate the conglomerate could be looking to become an aerospace and defense (A&D)-focused company similar to other large rivals, according to analysts. Earlier this month, Textron announced it is reviewing strategic alternatives such as a sale or spin-off of its German Kautex business unit, which produces fuel systems and other functional components. Kautex operates more than 30 plants in 14 countries and generated more than $2.3 billion in revenue in 2018. “Kautex strategic review suggests Textron wants to become an A&D ‘pure-play,'” Cowen analysts Cai von Rumohr and his team said Aug. 9. “The thesis is that ‘new Textron' could command a higher [valuation] multiple closer to A&D pure-plays; and it would have optionality for merger and acquisition (M&A) or stock repurchasing to leverage its new product-driven growth.” The Cowen analysts said they think that if Kautex is disposed of, so could golf cart maker Textron Specialized Vehicles or other units in Textron's Industrial division. In turn, the company could use proceeds and money saved to bolt on smaller A&D businesses, or it could continue active share repurchases to lever benefits of expected growth from new products such as Longitude, Sky Courier, Denali and V-280. “A third possibility is that free of Industrial, Textron could be of interest to larger primes, who would bring more lobbying clout to V-280,” the analysts said. Buying candidates could be Boeing or General Dynamics, they added. Separately, a well-known adviser to the A&D industry recently told Aerospace DAILY that Textron would make a good acquisition target for other A&D players. “Over the years I've had my clients take a hard look at that one,” the consultant said. This person listed Boeing and Lockheed for possible top-level consolidation, although getting Pentagon and Trump administration approval could be more of a challenge than for other recent M&A deals. To be sure, Textron is already an aerospace-focused multi-industrial. According to Cowen, it is the leader in Class 1-5 business jets (which make up 24% of annual total revenue), with positions in helicopters via Bell (26%), defense systems (12%), and then industrial products (25%). Defense as an end-market accounts for 29%. But conglomerates are increasingly breaking up and those with A&D elements continue to focus on those businesses. United Technologies is working to spin off its elevators and air conditioning businesses while adding Raytheon. General Electric is divesting major units but favoring aviation. Honeywell International in recent years has spun off units to focus more on A&D and related businesses. One reason for the portfolio shaping is because of pressure from major investors who want companies to be more focused, in part so they can balance their own investment portfolios rather than relying on a company to try to play in various industries. Goldman Sachs is advising Textron on its review. Textron reiterated that no decision has been made and there are no assurances that the process will result in any transaction being announced or completed. The company has not set a definitive timetable for completion of its review of strategic alternatives and does not intend to make any further announcements related to its review unless and until its board of directors has approved a specific transaction or Textron otherwise determines that further disclosure is appropriate. https://aviationweek.com/business-aviation/could-textron-become-purer-ad-company-or-be-sold