BOEING NEWS
Boeing Signs Swedish C-130 Modernization Contract
Boeing [NYSE: BA] and the U.S. Air Force have signed a $19.8 million engineering manufacturing development contract for the modernization of the first Swedish Air Force C-130 aircraft.
The Undefinitized Contract Action award, which falls under the Air Force C-130 Avionics Modernization Program (AMP), leads to a foreign military sales contract between Boeing and the U.S. Air Force. The contract, the largest ever administered by the U.S. Air Force for the Swedish Government, is expected to be definitized by October 2006.
"The C-130 AMP program will lower Sweden's total ownership costs for its C-130 fleet while giving their air force the most capable C-130 aircraft available," said Mike Harris, vice president and C-130 program manager for Boeing.
Sweden became the first European operator of the aircraft when it received its first C-130 in 1965. The country also is the first international C-130 AMP customer.
Current plans call for modifications to be completed at the Boeing Support Systems Center in San Antonio, Texas.
Building on Boeing's performance on the U.S. Air Force C-130 AMP, benefits of the program include advanced cockpit technology and commonality with the U.S. Air Force. This initiative will standardize aircraft configurations within the Swedish Air Force through the installation of a fully integrated, night-vision-goggle-compatible, digital glass cockpit and a new avionics suit. The avionics suite includes digital displays and the proven 737 commercial airliner flight management system, both of which provide navigation, safety and communication improvements to meet Global Air Traffic Management requirements.
The 50/50 equity joint venture will produce titanium parts for the Boeing 787 Dreamliner. VSMPO-AVISMA will perform rough machining of titanium forgings in Verkhnaya Salda, Russia. Final machining and processing of the forgings will be completed by Boeing's Portland, Ore., fabrication facility and other machining subcontractors.
On April 13, 2006, Boeing and VSMPO announced the signing of a Memorandum of Understanding leading to the formation of the joint venture.
Consistent with their long-standing business relationship, the two companies also completed a framework agreement to outline the guiding principles of their future work in the area of titanium products.
"This agreement is an outstanding example of how a joint venture should work, with benefits for both of our companies," said Mike Cave, vice president of Airplane Programs for Boeing Commercial Airplanes. "VSMPO will expand its capabilities in titanium parts production, and Boeing will increase efficiency and reduce the waste associated with titanium machining.
"Boeing will continue to work closely with all government agencies to ensure our joint venture and all other activities in Russia remain compliant with all U.S. and international obligations, including the sanctions recently announced by the U.S. State Department," he said.
"The agreement between VSMPO-AVISMA and Boeing expands a relationship that dates back to 1997. Boeing and VSMPO-AVISMA will work together to address efficiency, quality, delivery and cost reduction. As part of this effort, titanium machine-turnings, or 'chips,' from the machining process will be recycled back to VSMPO-AVISMA to create an efficient, closed-loop supply," said Vladislav Tetyukhin, chief executive officer of VSMPO-AVISMA.
Boeing's Component Services Program (CSP) gives airlines fast access to critical airplane components while significantly reducing costs. Air New Zealand's eight new 777-200ERs (Extended Range), the first of which was delivered in October 2005, join a Boeing CSP global network of 97 additional 777s. Using this unique network will save the airline as much as 30 percent of its inventory, repair and administrative costs.
The same eight 777s will be monitored by Boeing's Airplane Health Management (AHM) system, which will also track the airline's fleet of eight 747s. AHM provides real-time maintenance information to airlines that can be used to address potential problems before they force airplanes out of service and impair an airline's operations.
"This deal demonstrates Air New Zealand's leadership in adopting new tools that will give the airline fast and actionable information as well as ready access to the components it needs to operate efficiently and reliably," said Dan da Silva, vice president of Sales and Marketing for Boeing's Commercial Aviation Services. "Both of the solutions are designed to make Air New Zealand's fleet more reliable and dependable for its flying customers. That is exactly where Boeing wants to be."
Because of its location far from population centers in Asia, Europe and the Americas, Air New Zealand maintains one of the industry's highest utilization rates. The airline's 777s are typically in the air 13 out of every 24 hours, and Air New Zealand plans to increase this utilization to 16 hours a day. The high utilization of the fleet requires the airline to find efficient and proven ways to minimize unplanned maintenance events.
"The Boeing CSP Program enables Air New Zealand to operate its fleet at spares service levels and costs that would have been difficult to achieve on its own. The same applies to the AHM Program. In order to stay competitive we need to take advantage of modern programs such as these," said Chris Nassenstein, Air New Zealand's General Manager Engineering Services.
The combination of CSP and AHM provides Air New Zealand with valuable tools to cost-effectively manage its spare-parts needs and a monitoring system that can provide the data needed to maximize the CSP's inherent efficiencies.
Under CSP, Boeing will provide Air New Zealand with the components it requires from a defined set of part numbers within 24 hours of the request. Since Boeing owns the parts until Air New Zealand needs them, the airline can reduce costs while guaranteeing a level of service at least on par with its prior experience. The airline also gains by acquiring a working component right away, rather than having to wait for a completed repair that could ground an airplane.
AHM will enhance the benefits Air New Zealand gains from CSP by providing real-time maintenance information that can be used to address potential problems in a timely fashion, activating a CSP exchange and part replacement before a failure causes an unscheduled maintenance event that takes the airplane out of service.
Working together, the two products represent a strong endorsement of Boeing's strategy to e-Enable the air-transport system so that data, information and knowledge can be shared across an entire enterprise to help make key operational decisions.
The CSP program is offered jointly by Boeing and Air France Industries. Boeing offers a similar CSP program for Next-Generation 737 aircraft.
Boeing [NYSE: BA] successfully completed the first flight tests of the Conventional Air-Launched Cruise Missile (CALCM) / Air-Launched Cruise Missile (ALCM) Test Instrumentation Kit (CATIK) Aug. 7 at the Utah Test and Training Range, Hill Air Force Base, Utah.
After launching the ALCM, configured with a simulated warhead, from a B-52 Stratofortress bomber, the U.S. Air Force used the CATIK to monitor in-flight missile performance and transmit the information to the flight test control center.
"We are very pleased with the success of this first flight," said John Griffith, Boeing ALCM/CALCM program manager. "The new CATIK will allow the Air Force to continue the flight test program through 2030."
ALCM is a self-guided weapon that carries a nuclear warhead. CALCM, designed in the 1990s, carries a conventional warhead. When launched, ALCM weapons fly to their targets using terrain correlation mapping, and CALCM weapons use Global Positioning System guidance. During flight tests, they fly a preprogrammed course over the range for approximately four hours.
Boeing will deliver the first production CATIK units in early 2007 under a contract worth approximately $38 million.
"While the delivery marks completion of a major production effort by the Apache team in support of the U.S. Army, it certainly does not signal the end of Apache production," said Al Winn, vice president of Apache programs at the Boeing Rotorcraft facility in Mesa, Ariz. "Follow-on orders for new and remanufactured Apache Longbows and the looming Block III effort for the Army mean continued production and support for the Apache for years to come."
The Army orders do not include additional sales to international customers who have committed to new aircraft and upgrades over the next several years, Winn added. A Block II extension effort, along with additional new-build Apache Longbows, will sustain the Apache program while Block III plans are finalized.
"The Apache will be the Army's primary combat helicopter for the next three decades, and it is Boeing's challenge to keep fulfilling the cost, schedule and performance commitments we've made and kept throughout the entire program," Winn said.
The Army ordered the 501 Apache Longbow helicopters as part of two five-year, multi-year contracts that began in the late 1990s. Since then, the Army has ordered additional Apaches and initiated the development of the new Block III upgrade, setting the stage for continued improvement of the combat helicopter.
Boeing produced the 501 Apaches in two configurations, called "blocks," that enabled the Army to incorporate new capabilities into the aircraft at strategic times. The Block III upgrade will modernize Block I Apaches, which first entered service in 1999, into the latest, most capable configuration.
U.S. Army Apache Longbow helicopters are in service around the world, including the Middle East, where they are performing a wide range of combat missions. Army Apaches have logged more than two million flight hours, including thousands of combat hours, since entering production.
Boeing conducted the demonstration for the U.S. Air Force Military Satellite Communications (MILSATCOM) Joint Program Office and representatives of the TSAT user community, including the U.S. Strategic Command, Air Force Space Command, Secretary of the Air Force, Army Forces Strategic Command, Office of the Assistant Secretary of Defense and the Space and Naval Warfare System Command.
The demonstration, the latest in a series of reviews for the program's critical technologies and system operations, allowed users to experience the interoperability of the future space-based network with the Transformational Communications Demonstration Capability (TCDC) system, an enterprise-wide asset that provides a live, virtual, and constructive simulation and test environment. Using the TCDC to emulate the military's Joint Tactical Radio System, Boeing engineers showed how the two systems would operate together using simulated global war on terrorism scenarios and realistic ground network signals. Boeing proved the systems' compatibility by reallocating bandwidth to provide "always connected" communications, including Web browsing, Internet voice services and text messaging to every warfighter, anywhere and at anytime.
"Our tests simulated real-world conditions such as blockages due to rough terrain, loss of terminals in the network and fully loaded capacity utilization," said Michael Gianelli, vice president of Boeing Navigation and Communication Systems. "With each review session, we're pushing the technology maturity and functional operation envelope of the TSAT system. Our customer, the U.S. Air Force, and our end-users can see the tremendous progress our team is making and that TSAT's important capabilities for the warfighter are real and achievable."
The review also provided progress updates in other key areas, including specification maturation, the TSAT block development approach, software architecture development, and the path to full-scale Space Segment and software integration. During a related executive risk management review with the customer, Boeing received high marks on the completion of planned development milestones and the delivery of associated data and documentation. These events, combined with demonstrations of TSAT's Next Generation Processor Router and Laser Communications earlier this year, help mark a successful path for the program's future.
Boeing is working under a $514 million U.S. Air Force contract for the risk reduction and system definition phase of the TSAT Space Segment program. The Boeing TSAT team includes Raytheon, Ball Aerospace, General Dynamics, IBM, L-3 Communications, Cisco Systems, BBN Technologies, Hughes Network Systems, Lucent Technologies, Harris, EMS Technologies, ICE and Alpha Informatics. The Air Force plans to select a primary TSAT Space Segment contractor in December 2007.
The results contained in this submission were generated in whole, or in part through work supporting the MILSATCOM Joint Program Office.
Indonesian dancers escorted the newest member of the Next-Generation 737 airplane family along the south shores of Lake Washington as employees and 737 supplier representatives, local and Indonesian government officials and Indonesian launch customer, Lion Air, looked on.
"This is a wonderful day for the Boeing team and 737 customers. The capability and value of the world's most successful jet family continues to grow with the new 737-900ER," said Mark Jenkins, vice president and general manager of 737 Airplane Production. "We are confident that the airplane's unprecedented economic advantages and industry-leading reliability will enable our customers to be even more successful. That's the hallmark of the 737."
Boeing launched the 737-900ER in July 2005 when Jakarta-based Lion Air announced an order for 30 737-900ERs. Lion Air also exercised purchase rights for 30 additional 737-900ERs in June 2006. In addition to Lion Air, the 737-900ER has been ordered by Continental Airlines, GE Commercial Aviation Services (GECAS) and Sky Airlines. Futura International Airways and Excel Airways will begin operating 737-900ERs on lease from GECAS in 2008.
The first 737-900ER will be delivered to Lion Air in the first half of 2007, following a five-month flight test program.
"The induction of the 737-900ER into our fleet will give Lion Air the competitive advantage both in cost savings and service," said Rusdi Kirana, president-director of Lion Air. "We are proud to be the only airline in Southeast Asia that will operate the 737-900ER, which will support our strategic plan to expand our routes and add new destinations within our growing market."
The 737-900ER is the same size as the 737-900, but can carry 26 additional passengers in a one-class configuration. At 138 ft., 2 in. long, the twin-engine jet incorporates a new pair of exit doors and a flat rear-pressure bulkhead that allows a maximum capacity of 215 passengers in a single-class layout.
Aerodynamic and structural design changes, including strengthened wings, a two-position tailskid, enhancements to the leading and trailing-edge flap systems, and optional Blended Winglets and auxiliary fuel tanks, will allow the 737-900ER to accommodate higher takeoff weights and increase its range to 3,200 nautical miles (5,900 km).
The 737-900ER will have substantial economic advantages over competing models including 9 percent lower operating costs per trip and 7 percent lower operating costs per seat than the A321 -- which is more than 10,000 pounds (4,536 kg) heavier. The 737-900ER joins the 737-600, -700 and -800 airplanes and will share the same industry-leading reliability of the other Next-Generation 737 series models. The Next-Generation 737s are 10 years newer and fly higher, faster and farther than competing models. To date, 99 customers have placed orders for more than 3,300 Next-Generation 737s.
The Boeing Company [NYSE: BA] this week began manufacturing the aft fuselage section for the U.S. Air Force's 100th F-22 Raptor air dominance fighter at the company's Developmental Center in Seattle.
"I'm proud of this team's perseverance in applying Lean Enterprise principles to the Raptor manufacturing process," said Paul Bay, Boeing vice president and F-22 program manager. "Since delivery of the first aft fuselage in October 1996, we've continually improved our cost, quality and delivery performance, reducing man-hours per unit by 89 percent and cutting overall flow time in half."
Boeing manufacturing engineers streamlined production in late 2003 when they replaced the facility's massive stationary assembly jigs with much smaller, more flexible tooling on wheels. For this and other industrial design breakthroughs, Boeing's F-22 assembly center has become a model of manufacturing excellence.
Boeing and its suppliers also use electron-beam welding to fuse the titanium fuselage components to precise tolerances. This approach reduces the need for traditional fasteners by 75 percent, lowering the airplane's weight, simplifying assembly and minimizing the chance of fuel leaks.
Where fasteners could not be eliminated, Boeing engineers pioneered a system that uses an automated, laser-guided machine to drill fastener holes. The laser tracker has a targeting feature and automated data feedback software that guide the drill to the precise location before drilling. Operated by machinists, the system drills nearly 2,500 holes in the structure. Engineering data fed into a computer controls the holes' location, diameter and depth. The holes are used for fastening the upper composite skin and lower engine-bay doors to the structure.
The 5,000-pound aft fuselage, measuring about 19 feet long and 12 feet wide, houses the Raptor's twin Pratt & Whitney-built F119 engines. It supports the wings and tail, carries fuel and contains the environmental control system and fuel, electrical, hydraulic and engine subsystems. The section also is instrumented with sensors that continuously monitor 430 functions during flight.
The aft fuselage is scheduled for delivery in October to teammate and prime contractor Lockheed Martin [NYSE: LMT], which recently delivered the 76th F-22 to the Air Force, with 31 additional Raptors currently on contract. The fighter is assigned to four U. S. bases: Testing is conducted at Edwards Air Force Base (AFB), Calif.; tactics development takes place at Nellis AFB, Nev.; pilots and maintenance teams receive training at Tyndall AFB, Fla.; and operational F-22s of the 1st Fighter Wing are assigned to Langley AFB, Va.
The demonstration, conducted recently at U.S. Air Force Research Laboratory facilities at Kirtland Air Force Base, N.M., used a half-scale version of a strategic relay mirror payload that ultimately could be packaged and carried to high altitudes on airships, long-endurance aircraft or spacecraft. The payload could be used with airborne, ground-based or sea-based high-energy lasers to destroy ballistic missiles and other targets. Relay mirror systems will greatly enhance laser weapon system performance by reducing the atmosphere's effects on laser beams and extending their range beyond line of sight.
"This demonstration is a major step in the development of relay technology because it shows that a relay mirror system can receive laser energy and redirect it to a target, extending the laser's range," said Pat Shanahan, vice president and general manager of Boeing Missile Defense Systems.
During the demonstration, Boeing suspended the 15-foot-high ARMS hardware 100 feet above the ground using a mechanical crane. Testers fired a low-power, sub-kilowatt-class ground laser from several miles away at one of the ARMS payload's two 75-centimeter mirrors. The other mirror relayed the non-lethal beam to a ground-based target board about two miles away from the ARMS.
Boeing began its ARMS work four years ago under a $20 million Air Force contract. Now that the work is completed, the Air Force plans to use the ARMS hardware to establish a permanent test bed for relay system technology development.
Boeing Missile Defense Systems conducts its relay system work through its Directed Energy Systems unit, formerly called Laser & Electro-Optical Systems.
Boeing presented the aircraft to a crowd of more than 750 U.S. Navy customers, industry partners and Boeing employees during a ceremony at its Integrated Defense Systems facilities in St. Louis. U.S. Navy Adm. Michael G. Mullen, Chief of Naval Operations and guest speaker at the ceremony, said, "The Growler is a model of what a strong strategic relationship between the Navy and industry can do. It represents acquisition excellence at its finest. This program has saved billions of dollars with an innovative approach.
"It is clear that the demand for electronic warfare is not only going to remain high, but is going to grow," the admiral said during his remarks. "The Growler was designed and built to answer that call. Its speed, range and robust self-defense systems will serve as force multipliers for naval aviation and greatly strengthen the entire joint force."
A derivative of the combat-proven, two-seat F/A-18F Super Hornet, the EA-18G's highly flexible design enables warfighters to perform an array of airborne electronic attack (AEA) missions, operating from either the deck of an aircraft carrier or land-based fields. The EA-18G integrates the capabilities of the most advanced AEA system, designed and produced by the Northrop Grumman Corporation, which recently completed tests on the EA-6B, with the advanced weapons, sensors and communications systems found on the Super Hornet.
The U.S. Navy selected the EA-18G to replace the current AEA platform, the EA-6B Prowler, which has been in service since 1971. Boeing received the EA-18G Systems Development and Demonstration phase contract on Dec. 29, 2003. The aircraft's first flight is planned for later this month, several weeks ahead of the originally scheduled date. EA-18G flight testing will take place at the Navy's Patuxent River, Md. and China Lake, Calif., test sites through 2008.
"Today's events are a tribute to the unparalleled excellence of the Hornet Industry Team, which has continually shown the nation that developmental programs can meet or exceed customer's expectations," said Chris Chadwick, vice president and general manager of Boeing Global Strike Systems. "We stand here today as a testament to innovation and excellence in every aspect of procurement, from the person who first came up with the concept, to the person who turned the last wrench to bring this amazing aircraft to us today."
The Growler will join the Navy's aircraft fleet in 2009. Capt. Donald "BD" Gaddis, F/A-18 program manager for the U.S. Navy, praised the development program, saying, "We're providing the warfighters of today something they can't even imagine. We're going to deliver a product that is truly going to transform the way we fight."
Boeing, acting as the weapon system integrator and prime contractor, leads the EA-18G Growler industry team. Northrop Grumman is the principal subcontractor and airborne electronic attack subsystem integrator. The Hornet Industry Team will divide EA-18G production across Boeing, Northrop Grumman, General Electric and Raytheon manufacturing facilities. The System Design, Development and Demonstration program concludes with an Initial Operational Capability in 2009. Naval Air Systems Command PMA-265 is the U.S. Navy acquisition office for the EA-18G.
Using the IMM program, Boeing and other suppliers will own the airplane parts, which will be stored at the SIAEC main maintenance base of operation until needed. SIAEC will only pay for parts as it uses them, thereby significantly reducing inventory holding costs and improving its return on assets. Boeing takes responsibility for purchasing, inventory management and logistics of the carrier's expendable aircraft parts.
"We see the value that IMM brings to our customers," said William Tan, SIAEC president and chief executive officer. "Besides strengthening our ability to deliver more cost-effective maintenance solutions to our customers, the program also supports our aggressive efforts to improve the turnaround time of customers' aircraft. As part of the IMM program we are confident that we will achieve these objectives."
"With SIAEC as the first MRO to join the IMM Program, this marks the beginning of a program with great potential for many customers," said Mark Owen, vice president of Material Management for Boeing. "This program not only provides measurable cost-savings for SIAEC, it also allows us to expand the offerings to other customers. It underscores Boeing's commitment to the global customer community and is another example of the supply-chain efficiencies and value we bring to aviation customers and suppliers every day."
IMM builds on existing materials management programs that Boeing has with several other customers -- Air Tran, All Nippon Airways, Delta Airlines, Japan Airlines, KLM, Japan Transocean Air and Singapore Airlines. This program is the next advance in expanding Boeing's supply-chain services to provide value to both airline and MRO customers and supplier partners.
Boeing [NYSE: BA] has awarded contracts to Harris Corp. and Rockwell Collins to participate in a supplier competition for the Small Diameter Bomb (SDB) Increment II data link.
Following the competition period, Boeing will select one competitor as the data link supplier for its SDB Increment II offering.
On April 18, Boeing and Lockheed Martin [NYSE: LMT] won one of two U.S. Air Force contracts for the competitive risk reduction phase of the SDB Increment II program, which will provide the U.S. Air Force and Navy an all-weather capability against moving targets. Boeing, as prime contractor and system integrator, will supply the air vehicle and the data link system. Lockheed Martin, a principal supplier, will provide the multi-mode seeker.
"We are building on the products of the Air Force's Weapon Data Link Network program and will transition the best solution to an operational capability for the U.S. Department of Defense," said Boeing Weapons Vice President Virginia Barnes. "The data link will be part of a new generation of software-configurable radios that meet current and future warfighter needs."
The data link enables the Increment II weapon to share data with either the launching aircraft or ground elements to assist in guiding the weapon toward moving targets.
The Boeing SDB weapon system family, to which the all-weather, 250-pound SDB II will be added, quadruples the weapon load on every U.S. fighter and bomber aircraft. The SDB Increment I system, with its GBU-39 weapon, will be deployed on the Boeing F-15E Strike Eagle later this year.
The U.S. Air Force is expected to award a sole source contract for the SDB II system design and development phase by late 2009.
Harris Corp. and Rockwell Collins are headquartered in Melbourne, Fla., and Cedar Rapids, Iowa, respectively.
