Nouvelles

Boeing, which saw no defense revenue growth last year, takes another financial hit from the tanker program. Boeing ceded its long-held top spot as America's largest aerospace and defense firms to Lockheed Martin after reporting financial results from an abysmal 2020 on Wednesday. The Chicago-based company also said it would lose another $275 million building Air Force KC-46 tankers because of “program primarily due to production inefficiencies including impacts of COVID-19 disruption.” The company has lost more than $4 billion on the project. The company closed 2020 — a year that saw the collapse of passenger air travel from the coronavirus pandemic and the return to flight of the 737 Max airliner — with just under $58.2 billion in revenue, down 24 percent from the previous year. While Lockheed — which on Tuesday reported $65.4 billion in 2020 sales — has long been the world's largest defense contractor, revenue from Boeing's commercial airplane business has combined with its military work to keep it atop the defense-and-aerospace category for decades. Boeing's defense and space sales were flat year-over-year at just shy of $26.3 billion. Its services business, which includes defense work, made $15.5 billion, down 16 percent as thousands of aircraft remain grounded due to the pandemic. “Overall, the government services and defense and space businesses remain significant and relatively stable and we continue to see solid global demand for our major programs,” CEO David Calhoun said on the company's quarterly earnings call Wednesday. “Nevertheless, the scale of government spending on COVID-19 response has the potential to add pressure to global defense spending in the years ahead.” U.S. defense spending is expected to flatten or decline in coming years as the Biden administration and a Democrat-controlled Congress focus more on domestic issues. Calhoun said the company expects its defense business to grow in the “lower end of the single digits” in coming years. “It's hard to commit to a big uptick in any way on growth rates anytime soon, in light of what I think are the pressures,” he said. Calhoun, who became CEO of the firm one year ago this month, said the coronavirus would continue to delay international defense contracts. “The order activity in those international markets has pushed to the right, somewhat of an almost entirely because of COVID-related stuff, not because of any competitive issue one way or the other,” he said. Like many of his colleagues in recent years, Calhoun touted Boeing's classified military work as being “incredibly encouraging and incredibly important to us.” Despite the continued problems with the KC-46, the Air Force has purchased 94 of a planned 179 aircraft. Just this month, it placed two orders totaling $3.8 billion for 27 aircraft. The FAA last month cleared the 737 Max for passenger flights in the United States. Some airlines have already resumed flights across North and South America. European regulators on Wednesday said the plane can resume flights across the continent. Boeing also disclosed Wednesday that it would not deliver its first 777X, a larger, more efficient version of the popular 777 jetliner, until late 2023. https://www.defenseone.com/business/2021/01/lockheed-overtakes-boeing-largest-us-aerospace-and-defense-firm/171684/

By: Valerie Insinna Edited on 1/27/21 at 1:44 p.m. to provide more details on the cost overrun. WASHINGTON — With the Jan. 27 announcement of a new $275 million charge on the KC-46, Boeing has now paid as much in cost overruns for the troubled program as the U.S. Air Force invested in the tanker's development. The new charge, which the company reported as part of fourth-quarter 2020 earnings, means Boeing has now paid more than $5.0 billion out of pocket to pay for the myriad technical problems and production issues that have cropped up since the company won the program in 2011. Under the firm, fixed-price contract signed then, Boeing is responsible for paying for any costs in excess of the contract's $4.9 billion ceiling. The latest KC-46 overrun occurred “primarily due to production inefficiencies including impacts of COVID-19 disruption,” the company said. Steve Trimble of Aviation Week put together a list of KC-46 charges by year, finding that the program documented its largest overrun in 2020 despite seeing charges decrease to only $148 million in 2019. The company previously attributed $494 million in charges to the ongoing pandemic during the first, second and third quarters of 2020. The KC-46 is a commercial-derivative plane based on the Boeing 767 airliner. Because it is manufactured on the 767 production line in Everett, Washington, before undergoing military-specific upgrades, any slowdown in commercial plane volume also makes it more expensive to produce the KC-46. Boeing President and CEO Dave Calhoun said in October he believed the KC-46 had moved past the technical problems that plagued the program over the past few years, and the tanker would prove to be an asset for the company after the pandemic had run its course. “The tanker has been a drag on us for three or four years in every way you can think of with respect to investors,” he said at the time. “But we are continuing to clear the hurdle with our customers with respect to its performance in their fleet and their need for that tanker. “That whole relationship, I believe, will begin to transition next year, and opposed to being a drag on our franchise — which it's been — I believe it will become a strength in our franchise.” In an message to Boeing employees on Wednesday, Calhoun pointed to some key wins in the defense and space sector, including the first flight of the MQ-25 tanker drone with an aerial refueling store, and the demonstration of the F/A-18 Super Hornet's ski jump launch capability for the Indian Navy. Over the past month, Boeing has inked contracts with the U.S. Air Force for the sixth and seventh lots of KC-46 production, raking in $3.8 billion for an additional 27 tankers. However, during the earnings call, Calhoun noted that analysts should not count on Boeing's defense business to generate a massive amount of near-term growth in the wake of the pandemic. “We continue to believe that we're going to have stable growth, admittedly at the lower end of the single digits. That's the best guidance that we can talk about because we do believe there is pressure that will ultimately come down as a result of all of the COVID spending here in the United States,” he said. “But a large part of our business now is international market, and the order activity in those international markets is pushed to the right somewhat — and almost entirely because of COVID-related stuff,” he said. “We still like our position because we have a lot of ongoing programs that the military and of course our defense [spending] bills have been kind to.” The Air Force plans to buy 179 KC-46 aircraft over the program of record. The first KC-46 was delivered to the service in 2019. https://www.defensenews.com/industry/2021/01/27/boeings-cost-overruns-on-kc-46-now-exceed-its-initial-contract-with-the-air-force

January 25, 2021 Olivier Andries took over from Philippe Petitcolin as Safran CEO on Jan. 1, after the latter took drastic measures in 2020 to keep the company afloat. The Paris-based equipment manufacturer, a “super-Tier 1” in the aerospace industry, is starting the new year in a relatively good financial position... https://aviationweek.com/aerospace/new-safran-ceo-faces-short-long-term-challenges

Un doublement des plafonds de financement de la banque publique Bpifrance serait à l'étude, afin de remédier à des difficultés de financement à l'export de l'industrie de défense française, rapportent Les Echos. Selon le quotidien, l'Assemblée nationale devrait diffuser, le 17 février prochain, un rapport sur le financement de l'industrie de défense, et devrait faire plusieurs recommandations. Des pistes telles que la formation de référents bancaires aux sujets stratégiques, le renforcement du rôle de Bpifrance à l'export, la création d'une banque à capitaux mixtes dédiée au secteur de la défense, ou encore le développement de fonds de souveraineté, seraient examinées. « Il y a un réel problème de financement bancaire à l'export et il faut absolument remonter les plafonds de garanties de la BPI », estime le député LR Jean-Louis Thieriot, rapporteur sur le sujet à l'Assemblée nationale. Les Echos du 28 janvier

Byron Callan January 26, 2021 The Biden administration probably will not unveil an outyear spending plan for the Defense Department until the late spring of 2021 at the earliest, and more likely it will come out with the fiscal 2023 budget submission in February 2022. The administration should, however, be commenting on some of the bigger changes as different reviews and assessments are completed before that budget plan is released. Consensus now is that Pentagon spending will be flat at least in the first term of the Biden administration, though analysts are not clear on what this means. Will the Pentagon's budget be unchanged from the level that was appropriated for fiscal 2021? Will it be flat in inflation-adjusted terms, which means it would rise at 2% annually in current dollars? Or will the budget be flat in current dollars, which would entail a roughly 2% annual decline in Pentagon purchasing power, assuming inflation is 2%? Each would have different outcomes for the spending that would flow to contractors. Defense optimists could argue that flat budgets historically have not lasted too long. There were periods in which budgets were flat over 2-4 years annually in the late 1950s, early 1960s and mid-1990s. Flat periods, however, were succeeded by growth—usually because of a crisis or a new military contingency. No one has a working crystal ball that will show what is ahead for the 2020s. There are reasons to believe, however, that the 2020s are different. Although interest rates are at historic lows, the ratio of U.S. debt to GDP is at levels seen during World War II. There is pent-up demand for non-defense discretionary spending—notably for infrastructure, and an aging U.S. population will likely demand more health care and other “social” spending. “Endless wars” in the Middle East may temper Americans' willingness to engage in new overseas missions, unless a major provocation occurs that is akin to the 9/11 attacks. The flat budget period could last longer than the post-World War II era suggests. Is “flat” good for contractors? That depends. Markets started to digest that U.S. defense spending was flattening in 2020. The largest U.S. defense contractors underperformed the S&P 500 in 2020 and are doing so again in the first days of 2021. The initial market verdict is that flat is not good. The assessment might be true, but it is going to depend on two factors: how the Pentagon reallocates resources in a flat budget environment and how contractors change their strategies and portfolios. A flat top-line defense budget could be positive if the Pentagon can successfully cut military personnel and operations and maintenance (O&M) spending. Both are tall tasks. Winding down operations in Afghanistan and the Middle East is not going to free up significant troop numbers, and in any event, both are apt to exert gravitational pulls from which the U.S. cannot easily break free. Global security risks are not going to allow the sort of force structure cuts that occurred at the end of the Cold War and the Korean and Vietnam wars. Readiness and training also will remain a priority in this environment. Spending on military personnel and O&M that keeps pace with inflation may place even more pressure on investment. If those accounts grow at 1-2% annually, in a flat top-line period, that will put even more pressure on investment. Still, while there has been no indication so far, it is conceivable that the Biden administration will propose reductions in force structure and will attack O&M costs with more vigor. It will take 1-2 years at least to realize those savings, but they could be applied to modernize a smaller military. For a number of years, the Pentagon attempted to retire older “legacy” weapon systems in order to fund new investment, but Congress has stymied efforts to muster out older Navy cruisers, aircraft carrier refueling systems and aircraft such as the A-10. The Defense Department could renew this line of attack, but it may be reminded of the old adage that repeating the same thing over and over and expecting a different outcome is the definition of insanity. The Pentagon will have to change its approach here by offering more incentives to states and districts that could be affected by the elimination of squadrons or units, and it has to be more forceful in confronting contractors whose net interests are harmed by such moves. A final thought is how contractors' strategies might change. In 2020 and so far in 2021, outperformance was evidenced by small-to-midsize contractors that appeared better aligned with Pentagon investment priorities in artificial intelligence, autonomy, supply chain resilience and low-cost weapons. The largest contractors may be able to unlock value in a flat top-line environment if they can spin off segments that are stagnant or declining. Sprawling program portfolios are apt to perform more in line with market growth rates, and that is not a recipe for superior performance. https://aviationweek.com/defense-space/budget-policy-operations/opinion-are-flat-pentagon-budgets-new-or-new-down

DEFENSE Focus sur le système « Vision », développé par Safran Electronics & Defense et Sodern La Tribune consacre un article au système de visée stellaire diurne et nocturne pour avions militaires, baptisé « Vision », développé par Safran Electronics & Defense et Sodern (filiale d'ArianeGroup). Ce système vise à être « permanent et totalement discret, sans émission de signaux radio électriques, et permettra une navigation précise et sûre, non tributaire de signaux de radionavigation (donc ni brouillable ni leurrable) et totalement souveraine », selon l'Agence de l'innovation de défense. « Ces viseurs d'étoiles diurnes permettront à nos aéronefs d'effectuer leur mission même lorsque les solutions de positionnement par satellites ne sont plus disponibles, comme cela peut malheureusement arriver sur nos thé'tres d'opérations », avait expliqué en juillet dernier la ministre des Armées, Florence Parly, dans un discours prononcé à Limeil-Brévannes au sein de Sodern. Lancé en 2016 par la DGA (Direction générale de l'armement), le projet vient de franchir une étape importante, avec la réalisation « d'essais au sol et en vol couronnés de succès », a récemment fait savoir l'Agence de l'Innovation de défense. Au terme de son développement, cet équipement permettra aux forces armées françaises de s'affranchir de toute dépendance aux systèmes de positionnement par satellites GNSS, notamment au GPS et à Galileo. La Tribune du 28 janvier

BY NATASHA MCKENTY | JANUARY 28, 2021 Estimated reading time 14 minutes, 58 seconds. Brandon Robinson's Royal Canadian Air Force (RCAF) and Top Aces fighter pilot exploits compare to those of a protagonist in a blockbuster movie. After graduating from the Royal Military College of Canada with First Class Honours, his career quickly skyrocketed from frontline fighter squadron to being selected for the prestigious Fighter Weapons Instructor Course (FWIC) – the Canadian version of Top Gun. He obtained an MBA at Royal Roads University, and then did a tour in Ottawa where he “managed over $4 billion in procurement projects for the Fighter Force.” He spent the next few years instructing for FWIC. “Think ‘Viper' from the movie Top Gun,” he laughed. I then completed our Joint Command and Staff College program for those flagged for senior leadership.” While instructing for FWIC, Robinson earned the CF-18 fighter pilot instructor role at 410 Squadron in Cold Lake, Alberta, leading into oversight of CF-18 Fleet Tactical Standards, and then onto senior project management with a deputy director role in multiple Air Force projects. Robinson is modest. He credits his competitive nature “and a lot of luck” for his success. “I fully acknowledge that without exceptionally talented and competitive friends, I would not have passed, let alone have been fortunate enough to fly jets,” he told Skies. He found Military College to be physically and emotionally demanding, having a way of teaching you your limits and how to “be at peace with them.” Despite the challenges, he was one of the top five engineers in the program all four years. For Robinson, aviation was innate. His grandfather, RCAF Capt Eric Robinson was a Second World War bomber pilot. His father, Brian Robinson, began flying at the age of 14, but his hopes of joining the Air Force were grounded when he learned his vision wasn't good enough. “My father was very young when he and [my grandfather] built from scrap metal what is now a family airplane — an old RC-3 Republic Seabee aircraft.” Brian retired from his day job to turn the family hobby into a successful custom aviation engineering business. There was always “an army of airplanes” in and around Robinson's home. The first time Robinson piloted a plane, he was three years old. His grandfather let him sit in the seat in front of him. “I couldn't sit. I had to stand,” he laughed. “He said, ‘OK, you have control, so take us over there.'” That experience “made an imprint” for Robinson. After high school, much to his “mother's chagrin,” he joined the RCAF to “fly fast jets.” After military training, “there's a big [graduation] ceremony where they hand out the slots, and I remember looking at the card and seeing the CF-18 symbol on the bottom,” he said. Internally, he was bursting. Not surprisingly, when asked about the memorable moments of his career, he said it's difficult to choose. Robinson recalled, after being on the Squadron for just three months in Bagotville, Quebec, he was deployed to Hawaii for a joint exercise with the U.S. Navy. “The U.S. Navy has this big exercise, and the Canadians were asked to go,” he said. “So, we ferried CF-18s across the country, from Quebec to Comox, British Columbia. We overnighted, met up with an aerial refueler and then the next thing I know I'm in the middle of the Pacific Ocean, tanking off a refueler. There's a portion where, if you can't get gas, you're going to have to eject because you can't get back to land. I'm a 27-year-old kid who only has 200 hours of experience in this CF-18, and I'm over the middle of the ocean thinking, ‘OK, you better make this happen.' It's not the easiest maneuver either,” he laughed. Robinson shared the story of how he earned his call-sign: Repo. “I was flying, and my left engine essentially blew up; one of the main turbine hubs fractured. It severely crippled the aircraft, placing it into a reversionary control architecture. The engine was destroyed, and the aircraft was on fire,” he said. After 10 “very long seconds” of being “out of control,” he “dealt with the fire” and regained control. “I was able to land it safely back at the base. However, it was too badly damaged to fix. So, the joke was that the government had to repossess or repo it,” he laughed. “The damaged engine almost fell out when I landed.” He remembered flying low-level over the ocean while “shooting missiles at drones and dropping bombs on remote-controlled moving ships; being in front of 100 angry fighter pilots leading a NATO coalition strike mission; [and] early morning departures over Torrey Pines in California to dogfight over the ocean.” In 2018, with 20 years of service and a list of neck and spine injuries in his rear-view, he knew it was time to find adrenaline elsewhere. “You can't pull seven-and-a-half Gs for 20 years without hurting a few things,” he laughed. Leaving, he admitted, was a difficult decision, but entrepreneurship was also on his radar. The kid that grew up in rural Ontario, Canada, with an “army of airplanes” at his disposal and a military career most would envy, headed out to his next call of duty. He joined forces with his father to start Horizon Aircraft, an aerospace startup that is currently developing the Cavorite X5 — a new eVTOL (electric vertical take-off and landing) design for the urban air mobility market. Horizon has been developing the Cavorite X5 for the past two years. The concept for the X5 came from the company's initial prototype, the X3 — an amphibious design with a hybrid electric power system. “When we were asked to push the performance even further, we naturally began investigating distributed electric propulsion and the potential for eVTOL modification of the core X3 concept,” explained Robinson. “That's how the X5 The five-seat Cavorite X5 is powered by an electric motor coupled with a high-efficiency gas engine, but is ultimately built for fully electric flight. Horizon is building the aircraft to fly at speeds up to 350 kilometers per hour, with a 450-km range. The focus is to produce an aircraft “able to do real work in harsh environments,” including disaster relief, medevac, air cargo and personnel transport. Today, Robinson has his hands full with multiple patents pending, including a “fan-in-wing design” that would allow the Cavorite X5 to fly either like a conventional aircraft or an eVTOL when required. The X5 “flies like a normal aircraft for 99 percent of its mission,” said Robinson. The wing design “allows the aircraft to return to normal wing-borne lift after its vertical portion is complete; when moving forward, the wings close up and hide the vertical lift fans.” Horizon is working towards a large-scale prototype it hopes to have flying by the end of 2021. Robinson has become comfortable fielding questions based on skepticism. He's built an army of support from his highly-skilled network, including Virgin Galactic test pilot and close friend, Jameel Janjua. “Our team is extremely experienced, formed out of my father's previous custom aviation engineering business. We also have an individual leading the technical development who has designed, built and tested two novel aircraft designs from scratch. https://skiesmag.com/news/first-class-fighter-pilot-evtol-entrepreneur

Aéro Montréal is working with McGill University's Master of Management in Analytics (MMA) to improve the capabilities of the SDQué​bec portal using artificial intelligence. A team of five McGill students are assessing the current status of the portal and developed a survey to collect information that will help with their assessment. This survey will be used to gather valuable insight on how we can enhance the user experience regarding the search engine tool already available on the portal. Answers are completely anonymous but if you have any questions please feel free to reach out to andrea.yzeiri@mail.mcgill.ca. ​ https://freeonlinesurveys.com/s/mMR5i7pn#/0 The survey closes on February 5th, 2021 at 11:30pm EST. It only takes 5 minutes, many thanks in advance for your help !

DEFENSE Entretien avec Eric Trappier, Président du GIFAS et PDG de Dassault Aviation Eric Trappier, Président du GIFAS et PDG de Dassault Aviation, était invité sur Europe 1 mardi 26 janvier. Le dirigeant a souligné que la signature du contrat de vente de 18 avions de combat Rafale à la Grèce, qui s'inscrit dans la continuité d'un partenariat historique, représente également « un tournant », puisqu'il s'agit du premier contrat Rafale signé en Europe. Ce contrat met en évidence l'interopérabilité de l'avion de combat avec les alliés de la France. La construction de 18 avions Rafale (6 appareils destinés à la Grèce et 12 destinés à l'armée de l'Air française dans le cadre d'une commande à venir du gouvernement français afin de remplacer les appareils prélevés en faveur de la Grèce), garantit « un an et demi » de travail dans les usines de Dassault Aviation, et sollicitera « 7 000 personnes » dans ces usines, situées en France. M. Trappier est par ailleurs revenu sur l'importance d'un soutien sur le long terme des compétences et des technologies pour l'ensemble de la filière aéronautique et spatiale, et sur les enjeux de souveraineté qui y sont liés, rappelant le rôle du GIFAS à cet égard. Il a évoqué également le fonds français mis en place dans le cadre du plan de Relance, qui doit contribuer à garantir la sauvegarde de la supply chain et des pépites françaises. Le dirigeant a enfin souligné le caractère crucial de la prise en compte stratégique des enjeux liés à l'espace, pour la défense française et européenne. Europe1 Matin du 27 janvier