6 juillet 2020 | International, Aérospatial

Boeing Defense And Space’s Leanne Caret: ‘We’re Owning Our Mistakes’

Jen DiMascio Joe Anselmo Michael Bruno Steve Trimble July 01, 2020

Leanne Caret, president and CEO of Boeing Defense, Space and Security, spoke via teleconference with Aviation Week editors in the run-up to what would have been the Farnborough Airshow.

AW&ST: In addition to the turnover among Boeing executives, the company's stock and reputation have taken a beating in the past year. How is Boeing a different company today than it was 18 months ago? I am confident in the Boeing Co., and we have an enormously bright future. It's because of the incredible women and men who work for this company and bring their best every day. We have become a very introspective company, very pragmatic. We're owning our mistakes, and we're committing to address those. That is the centerpiece of what you have to do to have trust, especially in an industry as critically important as ours is, where people are flying and using our products every day, whether commercially or defending nations and allies.

How has COVID-19 affected the goals that Boeing Defense set at the start of the year? The defense industry has been deemed mission-essential. We need to make certain we're continuing to deliver product to our customers, we keep our supply base healthy, and we all have an eye to the future. I really appreciate the partnership and conversations we've had with the Pentagon. You've heard [Boeing CEO/President] David Calhoun mention that, after what has happened in the commercial aerospace market, the defense business is important to the Boeing Co.—has been and always will be.

After COVID-19, what does the future hold for defense spending? We have a very pragmatic view of the future. I don't anticipate significant budget increases. We have always planned that at some point we could see a regression in defense budgets.

Wall Street is expecting about a 2% increase in revenue for Boeing over the next couple of years. That is on the lower end of where your peers are. They are in the mid-single digits. What rate of growth do you see? I think it's important to note where we are in the life cycle of many of the products in our portfolio. Where you will continue to see opportunity for us as we move into production on some of those key franchise programs that we won a few years ago is the [T-7 advanced trainer, MQ-25 unmanned carrier-based refueling aircraft and MH-139 helicopter].

We're all going to see the marketplace adjust as a result of COVID-19. Around the world, we've already seen some delays and some very large competitions that have been slighted because customers are having to assess where they are. I want our team to have as its centerpiece meeting our customers' needs and expectations, and I believe that the outcome of that will be growing the business and strong financial performance.

Many big programs are coming down the line, such as the Low-Cost Attritable Aircraft, the Advanced Battle Management System, the Next--Generation Air Dominance or the Future Vertical Lift programs. The Pentagon is emphasizing procurement with more control over intellectual property, fewer hooks into the sustainment phase and more competition. How will Boeing adapt to that over time? Will it require fundamental changes? In the last decade, we were focused on redefining how we designed and built aircraft. We were anticipating that the customer was going to commoditize the type of product that we have traditionally built. We have a foundation in model-based systems engineering to bring the collective best from industry together, so that when a system is in the field, we have developed it with maintainers in mind.

That's where our build process has really paid off. In 2016, we had not won the T-7 or MQ-25 contracts or certainly not had any thought of the F-15EX yet. All three of those used this concept, which is to use advanced engineering and design toolsets to address the customer's vision. We placed our bets on changing the way we did business, and we have positioned ourselves nicely.

Please update us on the KC-46. Where do things stand with the foreign object debris (FOD) situation? I'm not going to be happy until we're perfect, and we're not perfect yet. My focus is to make sure we don't deliver any aircraft with FOD to the U.S. government. If that means I need to hold back a delivery because a member of our team identified an issue, we're going to do the right thing. The most important thing is to deliver a perfect product to the customer. I think it is a testament to the steps that we have taken that we will not pass a defect to our customer. It speaks to the culture change that we have instituted over the last 1.5 years. Quite frankly, we have used KC-46 as the bully pulpit to redefine what we want to do as a company, and I'm really proud of the team for leading the way.

Is Boeing on track for fixing the KC-46's remote vision system (RVS) in fiscal 2023? We are looking to demonstrate RVS 1.5 later this summer. It is a building block to what we call RVS 2.0. We have put in place a standard and an agreement that we are all aligned around, that really transcends what the original contract anticipated in terms of RVS. What we are incorporating posi-tions this fleet for not only a leap forward in technology but for autonomous operations in the future. We are on track in this partnership with the U.S. Air Force and the Air Force Research Laboratory. And yes, the timeline is in 2023.

What is the outlook for selling F-18s internationally, given the potential for pandemic-related budget reductions in the future? We've secured a number of orders with F-18s that have kept our production line hot. Coupled with that, we're doing the service life modernization program with the U.S. Navy, where we're bringing every one of the aircraft back through and increasing capabilities that eventually will include Block 3 capabilities. We have seen signs that campaigns in Canada, Finland, Germany, India and Switzerland are sliding a bit to the right. None of them have been, to my knowledge, canceled or stopped.

One of the things that we've seen them dealing with is the impact of COVID. Many times, they have the budget, but the budget may go out a longer period of time. Or right now they are impacted by staff shortages. These are some big opportunities, and I think the F-18 is positioned nicely, both from the aspects of an acquisition cost and the cost per flying hour.

What is the outlook for the F-15? We just did our F-15 Qatar flight a few weeks back. We have continued to demonstrate the ability of the F-15 with our Saudi and Qatari customers and the U.S. Air Force. We're really excited about that opportunity, and it won't be your grandma's F-15.

Boeing is a bit late on delivering the Space Launch System (SLS), and it was left out of NASA's competition to build a lunar lander. What are you doing to turn those programs around? On Space Launch Systems, I am really proud of the team for the amazing capabilities they developed with the world's largest rocket. She's sitting on the stand at Stennis Space Center. After watching how this team has battled through the COVID crisis, I'm looking forward to having a hot-fire [test] later this year. Early on, we struggled on SLS from an execution phase. There were also different challenges from a funding perspective and other things. Over the course of the last 1.5-2 years, the team has been hitting its milestones and commitments.

On the civil space side, SpaceX beat Boeing to the punch on the first Commercial Crew mission. Are you looking to change your approach? On Starliner, we did not execute the full mission profile, and the right thing to do is to refly. I think that's the right decision, and the teams are focused on that. Our partnership with NASA dates back more than 60 years, and we're incredibly proud of this heritage. But our future isn't defined by our past. It's about making certain that we can continue to innovate and deliver today. This year marks 20 years for the International Space Station.

I just couldn't be more thrilled for the team as Doug [Hurley] and Bob [Behnken] were able to join the other astronauts aboard this station. Human space exploration is not for the faint of heart. It changes mankind. We are going to continue to be a great partner, and we're going to continue to advocate for everyone's success when it comes to human space exploration—because it is that important for all of us.

https://aviationweek.com/defense-space/boeing-defense-spaces-leanne-caret-were-owning-our-mistakes

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    Irene Klotz The first Falcon 9 rocket to land successfully after dispatching a payload into orbit stands on permanent display outside SpaceX headquarters in Hawthorne, California, a testament to the perseverance of founder, CEO and chief engineer Elon Musk, who wants a fleet of fully reusable spaceships to reduce the cost of colonizing Mars. The vision is shared by fellow tech entrepreneur Jeff Bezos, whose Kent, Washington-based Blue Origin space company is developing a series of reusable vehicles, beginning with the New Shepard suborbital passenger transport system. The New Shepard made 12 uncrewed flight tests over the last five years, with more to come before commercial flights begin. Bezos also has pumped $2.5 billion into developing the New Glenn, a reusable system powered by seven BE-4 methane-fueled engines designed to carry nearly 50 tons to low Earth orbit. “That is the smallest orbital vehicle we are planning to build and launch,” says Clay Mowry, Blue Origin vice president of sales, marketing and customer experience. But the first BE-4s to power a rocket to orbit may not be aboard the New Glenn. United Launch Alliance (ULA) is buying the engines to power the first stage of its Vulcan rocket, an expendable booster—at least for now—which, like the New Glenn, is slated to debut next year. At some point, ULA may decide to recover and reuse just the BE-4 engines, a pair of which will fly on each Vulcan. The idea is for the engine compartment to disengage after launch and fall back through the atmosphere protected by an inflatable hypersonic shield. A helicopter would be positioned to snag the engine section midair as it makes a parachute descent. ULA calls the approach its Sensible Modular Autonomous Return Technology, or SMART. “It does not impact, in any significant way, the overall performance of the launch vehicle because you don't have to save fuel to fly home with,” ULA CEO Tory Bruno tells Aviation Week. “You still get to burn up all your fuel, separate your engine, which is the most expensive piece, and recover it.” “We have not really changed our assessment over the last couple of years because we have yet to see the other forms of reusability—flyback or propulsive return to Earth—demonstrate economic sustainability on a recurring basis,” Bruno says. “It's pretty darn hard to make that actually save money. . . . We've seen nothing yet that changes our analysis on that.” SpaceX currently is the only launch company reflying orbital rockets. SpaceX launched its final version of the workhorse Falcon 9 booster, called the Block 5, in May 2018. Within two months, the company was flying Block 5s exclusively. The upgrade includes higher-thrust Merlin engines, stronger landing legs and dozens of upgrades to streamline recovery and reuse. Block 5s were designed to fly 10 times with minimal maintenance between flights, and up to 100 times with refurbishment. SpaceX President and Chief Operating Officer Gwynne Shotwell says the company no longer expects to need to fly a Falcon 9 more than 10 times. “We don't have to ramp up our production, at least for boost phases, like we thought we were going to,” Shotwell said on March 10 at the Satellite 2020 conference in Washington. “From a reliability perspective, we want to know the limits of Falcon 9, so we'll push them, but . . . some government customers want new vehicles—I think over time, they will come to flight-proven vehicles as well,” she added. “But if I have to build a couple of new ones every year, or 10 new ones a year, that adds to the fleet, and I don't know that I'll have to push a rocket more than 10 [flights.]” With regard to how much the company has been able to cut costs by reflying rockets, Shotwell would only say, “We save a lot of money.” As a privately held company, those operating expenses are not publicly available, but the Block 5 flight record is. So far, SpaceX has flown 14 Block 5 core boosters over 31 missions, including two Falcon Heavy flights, which use three cores apiece. Of those 14 boosters with flight history, five remain part of the operational fleet. The rest were expended—several after multiple missions—due to payload performance requirements or unsuccessful landings. One booster was intentionally destroyed as part of a Crew Dragon capsule launch abort flight test. SpaceX's fleet leader flew five times before failing to land on a drone ship stationed off the Florida coast on March 18. SpaceX has not said if the botched landing was related to a premature engine shutdown during the final phases of ascent. The rocket's remaining eight Merlin engines compensated for the shutdown, and the payload—a batch of 60 SpaceX Starlink broadband satellites—reached its intended orbit. While it continues to fly the Falcon 9 and Falcon Heavy for NASA, national security and commercial missions, SpaceX is developing a fully reusable, human-class deep-space transportation system called Starship at its own expense. Another company testing the waters of reusability is Rocket Lab, which builds and flies the Electron small-satellite launcher. “For a long time, I said we weren't going to do reusability,” Rocket Lab CEO Peter Beck said in August 2019, when he announced the new initiative. “This is one of those occasions where I have to eat my hat.” Electrons do not have the performance for a propulsive return like SpaceX's Falcons do, so Rocket Lab is pursuing a midair, helicopter recovery system to snare the booster's first stage. The intent is not to reduce costs per se but to increase flight rates without having to boost production. The company currently is producing one Electron rocket about every 30 days. “We need to get that down to one a week,” Beck says. “We view [rocket reuse] as sort of a journey,” ULA's Bruno adds. “We're going to start with the engines because we're pretty sure we can save money with that and pass those savings on right away. As we learn more by doing, we'll continue to assess other valuable parts of the rocket, and we may discover that we can do that there as well.” “There is one funny thing about reusability,” he adds. “As you make your rocket less expensive, and you make parts of your rocket less expensive, it's harder to close a business case on reuse because the thing you're recovering isn't as valuable. There's a balance there.” https://aviationweek.com/shows-events/space-symposium/economics-rocket-reuse-still-air

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