9 janvier 2024 | International, Aérospatial

Ryanair expects to be 5-10 new aircraft short this summer -FT

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  • Singapore, Israeli firms team to develop new ship-killing missile

    29 juillet 2020 | International, Naval

    Singapore, Israeli firms team to develop new ship-killing missile

    By: Mike Yeo MELBOURNE, Australia — Singapore's ST Engineering believes that a new joint venture with Israel Aerospace Industries, to market and sell advanced naval missile systems, will leverage both companies' strengths and track records to address a growing demand for guided munitions. The joint venture, announced in mid-July, is called Proteus Advanced Systems, with ST Engineering's land systems arm and IAI each having a 50 percent share. According to the news release announcing the joint venture, the new entity will “market and sell advanced naval missile systems, including a next generation anti-ship missile system.” ST Engineering confirmed to Defense News that its next generation anti-ship missile is called the Blue Spear, a system that it says it has been working with IAI over the past few years, although it declined to divulge the exact timeline. A spokesperson from the company added that Blue Spear, which was also known as the 5G SSM, is “is an anti-ship missile system that introduces an advanced and novel approach which addresses the challenges of the modern naval arena for years to come,” and confirmed reports elsewhere that ST Engineering's role in the Blue Spear's development includes the design, development and production of major subsystems like the booster motor and warhead. The spokesperson added that the land systems arm of the company, ST Engineering Land Systems, was chosen to participate in the development of the missile as it “has been in the business of conventional munitions for many years.” The division has manufactured NATO-standard ammunition for small arms and artillery systems, and has been involved in license-production of both the Rafael Spike anti-tank and the Russian 9K38 Igla surface-to-air missiles used by Singapore's military. No other technical details of the Blue Spear were made available. IAI has previously developed the Gabriel family of anti-ship missiles, with the latest being the Gabriel 5, which the Israeli company says is designed to penetrate modern hard- and soft-kill anti-missile defenses. ST Engineering says that the development of the Blue Spear and the formation of the joint venture was a commercial venture by both companies and is “not driven by any ongoing customer requirement.” However it has not escaped notice that the Republic of Singapore Navy's current anti-ship missile is the Boeing RGM-84C Harpoon, a weapon that was introduced in the early 1980s. The Harpoon is used by Singapore's six Formidable-class multi-role frigates and a similar number of Victory-class missile corvettes, while the air-launched AGM-84C can be carried by Singapore's Fokker 50 maritime patrol aircraft and its Lockheed-Martin F-16C/D multi-role fighter jets. The service plans to buy six multi-role combat vessels, starting the middle of this decade, to replace its missile corvettes, and will almost certainly equip these with a new anti-ship missile given several of Singapore's neighbours are introducing much more modern capabilities. The Singaporean frigates, which entered service between 2007 and 2009, will likely receive new missiles in the future as part of a continuing program to refresh its capabilities. Singapore's defense ministry has yet to respond to questions from Defense News about potentially acquiring a new anti-ship weapon. Singapore and Israel have enjoyed a close defense relationship spanning several decades, with the latter providing extensive assistance in setting up Singapore's military when it became independence in 1965. The relationship extends to both countries defense industries, and Singapore is a major user of Israeli defense equipment although the relationship is usually kept low-profile. https://www.defensenews.com/global/asia-pacific/2020/07/28/singapore-israeli-firms-team-to-develop-new-ship-killing-missile/

  • Contracts For July 16, 2021

    19 juillet 2021 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Contracts For July 16, 2021

  • Why defense firms need to get systematic about M&A — big and small

    17 novembre 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité

    Why defense firms need to get systematic about M&A — big and small

    By: Eric Chewning and Frank Coleman III After years of growth, defense budgets will likely flatten (or decline). In such a financial environment, the U.S. Department of Defense will consider trade-offs between funding modernization, sustaining legacy equipment and preserving force structure. These hard choices will be informed by the DoD's strategic acquisition priorities, which will likely continue to reflect the need for innovation around leading-edge capabilities in areas like space, C5ISR, long-range precision fires, unmanned vehicles and artificial intelligence. To support these evolving mission requirements, the defense industry will need to ensure the industrial base is able to deliver technological advantage. This requires attracting world-class talent as well as the necessary financial capital to operate global industrial enterprises. Attracting these resources requires continued value creation through growth and return on invested capital improvements. But in a down budget environment, where is this growth to come from? While many will think organic growth is the best value-creating option (and often is), the answer also lies in augmenting a classic portfolio strategy with a systematic approach to transactions. Mergers and acquisitions are a proven growth accelerant for defense companies, and have generated superior shareholder returns and greater resilience for companies that have pursued it systematically. At first glance, this may simply seem like an obvious description of recent history. The aerospace and defense sector, after all, has seen rapid consolidation in the last five years, with deals worth $358 billion struck between 2015 and 2019, three times the total between 2010 and 2014. The problem for defense companies looking for more of the same is that this wave of consolidation now appears to have run its course. The combined market value of the top five defense hardware players is now more than four times that of the next five; so even as further mega-deals are theoretically possible, they will be increasingly difficult to execute, underscoring the value of programmatic M&A. Distinct from selective or organic deal-making approaches, programmatic M&A involves a company conducting two or more small or midsized deals per year, with an aggregate value greater than 15 percent of its market capitalization over five years, that align with their overall corporate strategy (which is hopefully linked to the “fast streams” of growth in the budget (see exhibit below)). These deals get choreographed around a specific business case, such as scaling or integrating vital digital capabilities, and are rooted in a disciplined appraisal of transactions. In the defense industry, programmatic M&A should be deployed against a strategy supported by the customer's need for innovation, lower costs and better mission outcomes for the war fighter. Our analysis shows that over the last decade, few defense companies took a programmatic approach to M&A. Those who did outperformed their peers in total shareholder returns by 10.4 percent. M&A was also an important key to resilience during the last defense spending downturn in 2007-2011: The top quintile of outperforming companies, as well as optimizing cash and flexing capex, used it as an opportunity to grow less cyclical parts of the business and build digital capabilities. Defense companies may be deterred by the current market environment, featuring stretched valuations, competition from institutional capital and a squeeze on mid-tier players. They may be cautious about the challenge of integrating smaller nondefense acquisitions into company processes and culture — a process that is easier to get wrong than right to be sure. The very complexity of these circumstances creates opportunities for bold players to differentiate themselves from their peers, align their strategies with national defense priorities and add significant value for shareholders. When done well, programmatic M&A can form a central pillar of their growth strategy. With a proactive approach to deal sourcing, holistic diligence, and in-house execution and integration expertise, companies can establish M&A as a critical capability and avoid the risks of reactive, one-off projects. In the challenging environment that confronts the defense industry today, those who act boldly will succeed in creating enduring businesses that can adapt to the evolving needs of the national defense. Eric Chewning and Frank Coleman III are partners at McKinsey and Company. Chewning previously served as chief of staff in the Office of the Secretary of Defense, and before that as the Pentagon's industrial chief. https://www.defensenews.com/opinion/commentary/2020/11/16/why-defense-firms-need-to-get-systematic-about-ma-big-and-small/

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