As U.S. Defense Secretary Robert Gates puts the ailing F-35B short-takeoff-and-vertical-landing aircraft on life support and proposes another delay to the single-engine stealthy fighter’s testing, he is also pushing forward a broad savings agenda that will enhance several major aerospace programs.
As new competitors enter the commercial aircraft market, Boeing and Airbus face big decisions about how to keep their products on the leading edge. Should they make incremental upgrades now, or wait until game-changing technologies are ready? Boeing Chairman, President and CEO Jim McNerney sat down at the company’s Chicago headquarters with AW&ST Senior Business Editor Joseph C. Anselmo to discuss the options the company is mulling and why he thinks China will become the industry’s next big power.
Amy Butler (Washington), Robert Wall (Washington), Graham Warwick (Washington), Alon Ben-David (Tel Aviv)
The F-35B is taking a major step forward with verticallanding test milestones, though the massive price increase for the stealthy, single-engine fighter is raising eyebrows among international customers. The first vertical landing took place Mar. 18 after a 1:09 p.m. EDT takeoff at NAS Patuxent River, Md. BF-1, the first short-takeoff-and-vertical-landing (Stovl) model, rode more than 41,000 lb. of thrust to achieve this milestone, which is key in proving the aircraft’s suitability for the Marine Corps, U.K. and Italian forces.
WASHINGTON — The program is to get new leadership and Lockheed Martin is to forgo hundreds of millions of dollars in award fees, but U.S. defense secretary Robert Gates is “not sure” whether the F-35 Joint Strike Fighter can avoid breaching Nunn-McCurdy limits on cost growth.
W. James McNerney, Jr. AGE: 59 EDUCATION: B.A. from Yale University and M.B.A. from Harvard University CAREER: Began in 1975 in brand management at Procter & Gamble Held a variety of senior management posts at General Electric, including president of aircraft engines unit Became chairman and CEO of 3M in 2001 Tapped for Boeing’s top job in June 2005. Oversees more than 160,000 employees.
Raytheon and Lockheed Martin are taking very different design approaches as they compete to address the Missile Defense Agency’s growing concerns about tracking and destroying multiple targets, even decoys, lofted by ballistic missiles aimed at the U.S.
Europe won, Boeing lost. Of course, politicians, labor unions, defense analysts, media stars and aerospace supply-chain leaders will argue for years about the impact of the KC-45A award. Not only in the U.S. but also in Europe. Everyone seems to be disappointed except for the Northrop Grumman/EADS team’s top executives. Moreover, they all are seriously overreacting, in an indication that they still don’t understand the true meaning of one magic word, globalization.
The first stealthy, short-takeoff-and-vertical-landing version of the Lightning II Joint Strike Fighter—the F-35B—will be rolled out this week at Lockheed Martin’s Fort Worth facility. Meanwhile, the F-35A conventional-takeoff variant has completed its 20th flight. Air refueling testing starts soon. Also, BAE Systems has opened a facility in Nashua, N.H., to produce electronic warfare systems for the F-35 and F-22. The EW suites detect, analyze, evaluate and react to the electronics on enemy sensors and missiles.
Lockheed Martin has tentatively scheduled initial flight of the first production F-35 Lightning II Joint Strike Fighter for early this week, kicking off a six-year, 12,000-hr. test program involving 15 aircraft in three different configurations. "We are on track to fly and the airplane is performing very well, as expected," says Doug Pearson, vice president of the F-35 Integrated Test Force. As of late last week, technicians were completing installation of flightworthy components in the airplane, replacing units that were approved for ground tests only.
The first images from the U.S. Air Force's new spacecborne strategic missile warning system are so far making good on the military's promise that they would surpass the quality provided by the decades-old Defense Support Program constellation.
Lockheed Martin and the U.S. Navy completed the Air Systems Critical Design Review (CDR) for the F-35C Lightning II Joint Strike Fighter on June 22, paving the way for the initial production process to begin. First flight of the F-35A is tentatively scheduled for 2009.
BAE Systems' decision to divest its 20% stake in Airbus is not good news for the European aerospace industry's future and cohesion. Moreover, it raises doubts about the British group's long-term goals. Will it remain a European player, or will it evolve into a Farnborough-based U.S. company?
The third time is anything but a charm for the Air Force, which has notified Congress--again--it needs more money for its next-generation missile early-warning system. Originally expected to cost about $4 billion, the Space-Based Infrared System (SBIRS) High is now expected to total well beyond $10 billion. But needing more cash is not the only problem: Officials don't know just how much they need. The final amount is expected to be at least $1.5 billion, although officials say it could exceed $2.5 billion.
The prospect of a fourth version of the Joint Strike Fighter specialized by the U.S. Air Force for close air support is probably dead for at least a decade. Informal talks between Pentagon planners and congressional staffers have quashed the idea.
Lockheed Martin Aeronautics proposed newly manufactured P-3C Orions to meet joint German and Italian requirements for a maritime patrol aircraft replacement (MPA-R) program. Both countries currently operate twin-turboprop 1960s-vintage Breguet 1150 Atlantic ATL.1s for MPA roles. Lockheed's proposal was formally made July 26 at the Farnborough Air Show. The combined fleets include 13 Atlantics in the German navy, plus four equipped for ELINT roles, and 18 ATL.1s that have been operated by the Italian air force since 1972 on behalf of the navy.
As wrenching as the last four months have been for airlines in North America, a few have proven to be exceptionally adept at making money and growing shareholder value in a harsh economic environment.
Of all the small-cap defense contractors that stand to benefit from the U.S.' renewed commitment to military preparedness, Alliant Techsystems would seem to be as well positioned as any.
With virtually all airline stocks trading well below book value, last week's crash of American Airlines Flight 587 was the last thing the industry needed as it struggles to regain investor confidence.
On the surface, recent rallies in some airline equities would seem to suggest stability is returning to the sector after being pummeled by the markets since Sept. 11. But some analysts think that would be reading too much into the meager gains.
