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Andrew Eversden The Army has moved the Lockheed Martin-made electronic warfare pod to the build and evaluation phase of the operational system, as it bolsters its electronic warfare capabilities. The second phase agreement is worth nearly $75 million, according to the Consortium Management Group's Jan. 30 award listing, which made the award on behalf of the Army. Lockheed Martin's electronic warfare pod, known as the “Air Large” piece of the Army's Multi-Function Electronic Warfare family of systems program, is mounted on an MQ-1C Gray Eagle drone. It provides commanders with jamming capabilities as well as electronic support, or sensing of the electromagnetic spectrum. The defense contractor developed a prototype as part of the first phase of the project it won in January 2019 under an $18 million contact. “Our internal research & development programs have resulted in first-of-its-kind converged technologies that are at the forefront of realizing our customers' urgent need and vision for combined cyber and electronic warfare (EW) capability and dominance,” Deon Viergutz, vice president of Lockheed's Spectrum Convergence division, said in a statement. The company has been testing the pod as part of the Army's Cyber Blitz exercise. Army officials plan to have the capability deployed to combat aviation brigades in 2022. The pods are expected to play a critical role on the battlefield with near-peer adversaries, such as Russia and China. “The air pod solutions are very important, especially when you start going against a near-peer competitor. The main reason why is because you start now dealing with more of an [electronic intelligence] ELINT threat than with a strictly commercial threat,” Col. Kevin Finch, program manager for electronic warfare and cyber within Program Executive Office Intelligence, Electronic Warfare and Sensors, told C4ISRNET in October last year. https://www.c4isrnet.com/battlefield-tech/c2-comms/2020/04/29/the-army-is-moving-forward-with-its-electronic-warfare-pod

By: Valerie Insinna WASHINGTON — Boeing took a $827 million hit as cost overruns continue for the KC-46 tanker program, the company announced Wednesday. About $551 million of the pre-tax charge was caused by new expenses associated with designing and integrating a new Remote Vision System for the tanker as part of an April agreement with the Air Force. The remainder of the charge reflected “productivity inefficiencies and COVID-19 related factory disruption,” according to a news release. KC-46 production stopped for about three weeks over the past month due to a temporary shutdown at Boeing facilities in the Seattle area — including the factory in Everett, Wash., where the tanker is produced. With the new charge, Boeing has now racked up about $4.6 billion in cost overruns over the life of the KC-46 program. Those expenses must be completely paid by Boeing under the terms of the $4.9 billion fixed-price firm contract it agreed to in 2011. The bill comes as Boeing contends with the continued grounding of the 737 MAX and instability to the air travel market posed by COVID-19, which has led to lost orders and disruptions throughout the company's production lines. But the RVS deal struck in April could potentially mark a new chapter for the tanker program, which has been mired in disputes between Boeing and the Air Force for years. The RVS — integrated by Boeing with cameras and sensors from Collins Aerospace — feeds live video and other data to the boom operator, who is able to use those cues to pump gas into another aircraft. But the Air Force has complained that the system does not work properly in all lighting conditions, leading to an increased risk of the KC-46 accidentally scraping the aircraft receiving fuel. Under the terms of the new deal, Boeing will make incremental hardware and software improvements to the existing system, but it will also design a new “RVS 2.0” with high-definition color cameras, better displays and improved computing systems not on the market when the first RVS was developed. During an earnings call with investors on Wednesday, Boeing CEO Dave Calhoun said the defense market continues to be healthy with solid demand. Overall, first quarter revenue for Boeing's defense sector decreased to $6 billion, down from about $6.6 billion in 2019. Most of that reduction was due to the KC-46 charge, according to the company, but a number of other defense programs were also impacted by the coronavirus pandemic, leading to reduced margin. https://www.defensenews.com/air/2020/04/29/boeing-gets-another-827m-charge-on-the-kc-46-program/

By: Angela Charlton, The Associated Press PARIS — Airbus says the aviation industry's unprecedented troubles are just beginning. The European manufacturing giant reported €481 million (U.S. $515 million) in losses in the first quarter, put thousands of workers on furlough and sought billions in loans to survive the coronavirus crisis. And its CEO said Wednesday it's still at an “early stage.” Even after virus-related travel restrictions eventually ease, Chief Executive Guillaume Faury acknowledged it will take a long time to persuade customers to get back on planes. Just how long, he can't predict. “We are in the gravest crisis the aerospace industry has ever known,” Faury said. “Now we need to work as an industry to restore passenger confidence in air travel as we learn to coexist with this pandemic.” Images shared online of packed planes and maskless, elbow-to-elbow passengers on U.S. flights — despite virus protection guidelines - have worried travelers and airline unions alike. International travel restrictions, meanwhile, have grounded thousands of planes worldwide. Faury insisted that airplanes are “probably the best place to be” during a virus outbreak because of air filtration systems put in place after previous virus outbreaks and other threats, but said Airbus will work with aviation authorities to try to calm the public. Shares in Airbus and Boeing have dropped some 60 percent this year as customer airlines collapse or seek billions of dollars in government bailouts. Airbus was unable to deliver 60 planned planes in the quarter because of virus-related problems, and said the second quarter looks similarly rough. Customers are asking for delays, which Faury called “the biggest issue we are managing at the moment.” Airbus executives expressed hope Wednesday that deliveries could start picking up in the second half of the year. But they refused to issue long-term guidance given that the virus is still spreading, and that governments are reluctant to relax international travel restrictions. U.S. rival Boeing is facing similar woes. Boeing's CEO said Monday that it will take years for the aircraft-building business to return to levels seen before the coronavirus pandemic. Airbus has slashed production by a third since the virus hit, and Faury said Airbus will study “resizing” the company after the crisis ebbs — a worrying prospect on a continent where Airbus has factories in four countries and is one of the region's industrial leaders. Already 3,000 Airbus workers in France are on temporary unemployment and the number is expected to grow. In addition, 3,200 workers in the U.K. are on furlough and negotiations are under way to put thousands of German workers on short work plans. A recent letter by Faury warning workers that the company is “bleeding cash” was a shock to many. But Frederic Romain of French union CFTC said “the situation requires transparency. It allows workers to open their eyes” to what's ahead. “Fears? We have a lot of them. For the moment we don't have a clear vision of what awaits us," Romain said. Airbus reported a 15 percent drop in revenues to €10.6 billion in the first quarter. Looking longer term, Faury insisted that Airbus remains committed to reducing airplane emissions but said it's “less urgent” than before the coronavirus crisis because the company has more pressing problems to solve. “For practical cash reasons," Airbus has stopped or suspended some projects aimed at “decarbonizing” its production, he said. https://www.defensenews.com/industry/2020/04/29/airbus-reports-515m-in-first-quarter-losses/

By: Sebastian Sprenger COLOGNE, Germany — Saab has delivered its first GlobalEye early-warning plane to the United Arab Emirates, the company announced Wednesday. The aircraft arrived in Dubai during the late morning of April 29 following a brief stopover in Bulgaria on its way from Sweden, Saab CEO Micael Johansson said during a call with reporters. The delivery caps four and a half years of work since the UAE and Saab signed a contract for three of the planes — modified Bombardier 6000 business jets equipped with Saab's Erieye long-range radar and other surveillance sensors. Saab is advertising GlobalEye as able to provide ground, air and maritime surveillance in a single package. “The delivery of the first GlobalEye is a major milestone for Saab, but also an important step in the history of airborne early warning and control,” Johansson said. “We have set a new standard for the market, and I am proud to say that we have delivered the most advanced airborne surveillance solution in the world to the United Arab Emirates.” The company, which has been spared from work stoppages in Sweden caused elsewhere by the coronavirus pandemic, had to take “a number of mitigating actions” to prevent the virus from spreading during the actual handover and during the weeks leading up to it, Johansson said. The measures included testing workers for the virus, quarantining them if warranted and retesting them afterward, according to Johansson. Saab is still working to produce the additional two aircraft owed under the 2015 contract. Those would be delivered “rather shortly,” the executive told reporters, declining to be more specific. The company is eyeing the potential sale of yet two more GlobalEye aircraft to the UAE. Such an option is included in the original deal, though details have yet to be finalized. Johansson cited Finland and South Korea as countries also interested in the GlobalEye technology. If Saab manages to drum up additional customers, future offerings are slated to include the Global 6500 jet as carriers, he said. https://www.defensenews.com/global/europe/2020/04/29/saab-delivers-first-global-eye-early-warning-plane-to-uae

But that's no cakewalk as new Air Force One and KC-46 tanker eat into the company's cash. Updated, April 30, 2020, with a U.S. Air Force statement. For the first time in 12 years, Boeing executives expect the company's defense and space unit to outperform its commercial airplane business, which is reeling from coronavirus and 737 Max losses. Boeing's defense business has not outperformed its commercial side since 2008, when the commercial market was still recovering from post-9/11 declines and U.S. defense spending spiked during the wars in Iraq and Afghanistan. The prediction comes on the back of pre-existing problems in the Boeing Defense, Space & Security division. The company's defense unit took a $1 billion hit in the first quarter of 2020, adding to the growing list of financial woes for the company trying to dig itself out of a massive hole. “This year ... the defense business will probably be bigger than the commercial business,” Boeing CEO David Calhoun said during a call with Wall Street analysts. “That will probably hold for a while.” MOST READ 1Artificial Intelligence Outperforms Human Intel Analysts In a Key Area 2Pentagon's ‘Willingness to Kiss the President's Ass' Worries Top Lawmaker 3Boeing Defense to Surpass Commercial Side For First Time In More Than a Decade SUBSCRIBE Receive daily email updates: Subscribe to the Defense One daily. Be the first to receive updates. ADVERTISEMENT Additionally, executives said Wednesday that Boeing would lose $827 million on its work building KC-46 aerial refueling tankers and $168 million on the new Air Force One 747s that will fly the president, according to executives and regulatory filings. It's the latest black eye for the tanker project, which has cost the planemaker more than $4 billion over the past nine years. However, it is the first cost increase on the high-profile Air Force One project, which President Donald Trump personally negotiated with former Boeing CEO Dennis Muilenburg. Boeing began work converting two 747 jetliners into the unique Air Force One configuration in January before the coronavirus pandemic forced many workers out of the office. “As we've had folks working virtually, and particularly on the engineering side — as well as that's gone — it's certainly experienced some inefficiencies that has caused us to reevaluate our estimate to complete those efforts,” Boeing CFO Greg Smith, said of the Air Force One project during a Wednesday afternoon call with reporters. “The team has been doing a great job managing the program and executing very well on many fronts, but this we could not offset in the quarter as a result of COVID,” he said. “The program remains on schedule and ... continuing to execute, but we're looking for opportunities obviously to mitigate any further risk that we may have as a result of COVID.” The terms of the Air Force One contract require Boeing, not taxpayers, to pay for any cost increases during the development of the plane, which the military calls a VC-25B. Despite the coronavirus-related issues, Ann Stefanek, an Air Force spokeswoman, said the project remains on track. “As planned in the baseline schedule, the next phase of modification is on course to begin in June 2020,” Stefanek said in an emailed statement. “To maintain current schedule, Boeing and the VC-25B program office adopted maximum use of virtual tools, most notably to close Critical Design Review in March 2020 and conduct a modification readiness review in April 2020.” As for the tanker, $551 million in cost increases stem from a deal reached between the Air Force and Boeing requiring the company to fix the complicated camera system used when refueling other aircraft. Most of the remaining $276 million is the result of coronavirus-related factory closures in Washington state where the tanker is built, and a “cost shift” resulting from slowing production of other commercial manufacturing. “I do believe that that program now is exactly where it needs to be,” Calhoun said of the KC-46. “We're going to finish well. Importantly our customer is going to feel like we have finished well and we've delivered a product that is second to none. I do believe that even the tanker future is significantly brighter than the one we've experienced up until now.” Calhoun also touted the company's development work. Although he did not mention any projects by name, Boeing is in the early stages of testing two new aircraft — the T-7A pilot training jet and MQ-25 refueling drone. “Our development programs at the early stages are all looking quite good. We're really not off plan on anything and usually by now we have a snip that we might be. I feel pretty good about the risk profile of our defense business despite the difficulties that we've attempted to overcome in just the last couple of years.” The same can't be said of the company's commercial airliner and aircraft repair businesses. Boeing is planning to cut 10 percent of its 160,000 employees through voluntary layoffs, attrition and involuntary layoffs. The coronavirus has driven a substantial blow to the storied 104-year-old aerospace and defense company, which had already been reeling from the fallout of deadly 737 Max crashes in October 2018 and March 2019. Passenger air travel has fallen to record lows prompting airlines to cancel flights, ground aircraft, and defer buying new planes. Boeing in late March temporarily stopped making commercial and military aircraft — including the tanker and the Navy's P-8 submarine hunter — in the Seattle-area, a COVID-19 hotbed. It also shut down its military assembly lines in Philadelphia for the Chinook and MH-139 Grey Wolf helicopters, and the tilt-rotor Osprey. Those factories have since reopened. A shuttered 787 Dreamliner factory in Charleston, South Carolina, is expected to reopen next week. Now all eyes — including at the Pentagon — are watching to see how Boeing manages tens of thousands of employees on its complex assembly lines with new social distancing procedures in place. If successful, the model could become a blueprint for other U.S. manufacturers. “They have allowed me to share their practices more broadly with industry to make sure that anything that is working for them to either be safer or get back to work, that that's something that can be shared with all,” Will Roper, head of Air Force acquisition, said Wednesday. Boeing began the year with hopes of fixing its troubled 737 Max and restoring public confidence in the world's largest planemaker. Unable to deliver the unflyable Max to the airlines, it stopped building them in early January as it began running out of places to park them. Photos showed planes carefully aligned next to one another on tarmacs and even in employee parking lots. There's still no formal timetable for getting the Max flying again, although executives are hopeful regulators will approve a number of fixes in the coming months and that it can begin delivering 737 Max aircraft to airlines in the third quarter. https://www.defenseone.com/business/2020/04/boeing-defense-surpass-commercial-side-first-time-more-decade/165020/

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. https://www.defensenews.com/air/2020/04/29/the-new-air-force-one-just-racked-up-its-first-cost-overrun/

By: Joe Gould and Leo Shane III WASHINGTON — The chairman of the House Armed Services Committee said Wednesday he doesn't think upcoming economic stimulus packages related to the coronavirus outbreak should include more money for defense, saying other public health needs are more pressing. “Without question, with the pandemic and the needs of national security and the Defense Department, we're going to have to spend a lot of money,” said Rep. Adam Smith, D-Wash., in a teleconference with reporters. “The good news is we have a lot of money. “The defense [budget] bill last year was $738 billion. I'm not saying that there aren't needs within the Department of Defense, I'm saying they have a lot of money and ought to spend that money to meet those needs.” Smith's comments come as the Pentagon is readying a request for billions in a future economic package under consideration by Congress, which has already passed nearly $3 trillion in emergency funding bills in recent weeks. Undersecretary of Defense for Acquisition and Sustainment Ellen Lord said last week that the Pentagon is working with the White House budget office on a package to aid defense contractors hit by closures or other effects of the coronavirus pandemic. DoD has already announced it would make $3 billion in expedited “progress payments" to increase cash flow to primary contractors and more vulnerable, smaller subcontractors. But Smith said his priority in the next stimulus bill is public health, not the defense industry. “Of all the needs that we face in this country, [my priority is not] to spend more money on basic DoD to go buy more planes or ships or boats or anything like that,” he said. In an emergency spending package approved earlier this month, lawmakers gave the Defense Department about $10.5 billion in funding for defense health programs and Tricare response to the public health threat, as well as money for National Guard deployments to help state prevention efforts. Smith has been an advocate of military personnel taking a larger role in conducting and processing coronavirus tests for the general public, saying the Defense Department's logistical expertise and infrastructure could dramatically speed that work. He said he would back more money for those efforts, but “I have not seen an argument that makes sense to me [for putting] more money into defense to manufacture things.” The Senate is scheduled to return to Washington next week, but House lawmakers have postponed any votes for the near future. No timeline has been announced for when the next stimulus package could be completed. https://www.defensenews.com/news/pentagon-congress/2020/04/29/key-lawmaker-says-dod-shouldnt-get-funding-boost-in-next-coronavirus-stimulus-package/

Nathan Strout Analytics and modeling, data management and software engineering are among the top tech priorities for the National Geospatial-Intelligence Agency, according to a document released Wednesday. The 2020 Technology Focus Areas publication is a guide for industry on how the agency is approaching technology broadly. “This document is focused on our needs, rather than specific technologies,” said Mark Munsell, NGA chief technology officer. “The changes we must make cannot only occur within the confines of NGA — they require the innovative spirit of industry to find new and unique solutions to some of our most difficult challenges.” The NGA's five technology focus areas are: · Advanced Analytics and Modeling · Data Management Modern Software Engineering · Artificial Intelligence · Future of Work The publication is an update to one that was first released in 2019. “We published the first NGA Technology Focus Areas as a way to share our technology needs with the larger geospatial intelligence (GEOINT) community. As our needs and expertise continue to grow and evolve, it is incumbent on us to provide an updated document reflecting these changes,” said Munsell in his introduction to the document. The agency also plans to issue its first technology strategy in the coming weeks, which will highlight how NGA plans to change in order to address these technology challenges. “Together, these two products illustrate the direction we are moving NGA's technology efforts. Please read them both; they provide a roadmap to protecting and advancing our nation's GEOINT advantage for years to come,” said Munsell. https://www.c4isrnet.com/intel-geoint/2020/04/29/these-are-the-technologies-the-national-geospatial-intelligence-agency-needs/

MONTRÉAL, April 29, 2020 /CNW Telbec/ - Aéro Montréal proudly announced today the launch of a new, innovative initiative that will provide 10,000 reusable masks to manufacturing SMEs in the aerospace sector. This project aims to support the continuation or resumption of their activities in a safe work environment. This Montréal-made face mask will help protect thousands of qualified employees in the aerospace industry without jeopardizing supplies necessary for the proper functioning of health services. Companies in the aerospace industry have already deployed a wide range of health measures to ensure business continuity, and this new initiative by Aéro Montréal will complement what is already in place. The COVID-19 crisis is unprecedented and will require the maintenance of these safety protocols for many months to come. Numerous companies are preparing for the resumption of operations and will undoubtedly face procurement challenges to ensure that they provide personal protective equipment to their employees, including masks. Promoting a gradual and safe resumption by supporting local entrepreneurship Aéro Montréal will draw on the strength of its network to offer reusable masks free of charge. Our team will be contacting our many SMEs over the next few days so that they can take advantage of this offer. Inspired by the Panier Bleu program, this initiative also aims to support the local textile economy. This is why it is being implemented with the support of the Metropolitan Fashion Cluster mmode, and Quartz Co., a Montréal based coat supplier. The company Quartz Co. modified its production line to manufacture protective textile products. This inter-cluster collaboration will enable the supply of washable masks to be available in record time at very competitive costs. Once the 10,000 free masks have been distributed, aerospace SMEs wishing to purchase additional masks, will be able to do so by contacting Aéro Montréal. "Through this initiative, Aéro Montréal is reaffirming its support for small and medium-sized enterprises, which play a crucial role in the supply chain. By working with local players, Aéro Montréal will help ensure a safe and efficient resumption of activities for a key sector that represents more than 42,100 direct jobs in Québec," stated Suzanne M. Benoît, President, Aéro Montréal "Over the past months we have invested significantly in acquisitions of viable Quebec production plants. At Quartz Co., we believe in the importance of retaining and developing a local production force. Thanks to these efforts, we can contribute today to the fight against COVID-19, manufacturing masks among other items for our corporate clients," added Jean-Philippe Robert, President of Quartz Co. About Aéro Montréal Created in 2006, Aéro Montréal is a strategic think tank that groups all major decision makers in Québec's aerospace sector, including companies, educational and research institutions, as well as associations and unions. The activities of Aéro Montréal are made possible thanks to the participation of the governments of Québec and Canada, the Montréal Metropolitan Community, as well as company members of the cluster. SOURCE Aéro Montréal For further information: Léa Guicheteau, Project Manager, Communications and Media Relations, Aéro Montréal, 514 550-7494, lea.guicheteau@aeromontreal.ca; Kaven Delarosbil, Director of Communications, Aéro Montréal, 514-743-2728, kaven.delarosbil@aeromontreal.ca Related Links http://www.aeromontreal.ca/