![]() |
![]() |
|||||||
|
News HeadlinesTuesday, April 05, 2005
- News Editor @ 21:55 PST Wednesday, January 05, 2005
- News Editor @ 23:25 PST Wednesday, December 08, 2004
- News Editor @ 20:47 PST - News Editor @ 20:36 PST Tuesday, January 06, 2004
- News Editor @ 23:23 PST - News Editor @ 23:12 PST Wednesday, December 17, 2003
- News Editor @ 07:12 PST - News Editor @ 07:10 PST Sunday, December 14, 2003
- News Editor @ 21:18 PST Sunday, December 07, 2003
- News Editor @ 23:50 PST - News Editor @ 23:48 PST - News Editor @ 23:41 PST Wednesday, December 03, 2003
- News Editor @ 21:31 PST - News Editor @ 11:53 PST - News Editor @ 11:42 PST Full StoriesTuesday, April 05, 2005
Senior Software Engineer - News Editor @ 21:55 PST JobPlex is currently conducting a confidential search for a top ranked, Fortune 500 company in the airline industry. Position Information: Major Job Responsibilities: √ Define and/or develop required aircraft and/or simulator system software interfaces and modification approaches. To apply : please send updated resumes as a word document to ddyson@jobplex.com Source: Dione Dyson
Wednesday, January 05, 2005
Lufthansa Orders its 14th EP-1000CT Visual System from Evans & Sutherland - News Editor @ 23:25 PST Lufthansa has the largest installed base of EP-1000CT systems, with 12 simulators equipped and in training at its facilities in Frankfurt and Berlin. A 13th system is due to enter service in early 2005. This order marks E&S' 14th EP-1000CT system purchased by Lufthansa. Including this order, 26 EP-1000CT systems have been sold by E&S in the fiscal year 2004, bringing the total sales for the product to 54 since its first delivery in 2003. According to David Rushton, managing director of E&S' Commercial Simulation unit, "Lufthansa continues to be a widely respected airline demanding the very best in quality and performance, and we are once again extremely pleased to have been selected for this project. This is the latest simulator that we have been contracted to upgrade for Lufthansa, and we look forward to an equally successful project this time around." EP-1000CT has initiated a new era in visual realism for commercial aviation training. At the top of E&S' Environment Processor product line, EP-1000CT is designed specifically to meet the exacting requirements for FAA/JAA Level D (and equivalent) flight training. Unique training features include a whole-earth database, detailed airport scenes, complex terrain, advanced weather effects, sensor capability, and E&S' Continuous Texture(TM) (CT), which provides a seamless, high-resolution, textured 3D worldwide training environment. Source: Business Wire Press Release
Wednesday, December 08, 2004
Saab Aerosystems Selects SGI Visualization Systems for Gripen Flight Simulators - News Editor @ 20:47 PST Saab will use the SGI Onyx visualization systems for the Gripen C/D -- the latest version of the fighter aircraft -- in the training simulator part of the PETRA. SGI Onyx delivers the compute power to process the vast amounts of visualization data from satellite photos, terrain elevation data, and terrain features data to provide the most accurate and visually ealistic environment for pilot training. "We chose the SGI system for its 3D graphics processing power and speed and because it offers visual representation of complex data in superior image quality, with full anti-aliasing," said Stefan Sandberg, manager of training systems, Saab Aerosystems. "With the Onyx system, we can synchronize up to eight visual channels and run the simulator at a consistent 60 Hertz, so that we can support the PETRA in Sweden, the Czech Republic and Hungary. Only the Onyx can supply the fluid production of images without any gaps or anything disturbing the training session for the pilots. Only SGI can support the realism we require: accurate down to 1 meter resolution." Saab Aerosystems PETRA, with the training simulator based on SGI Onyx, is a complete mission support system for mission planning and mission debrief. Once a mission is planned, it can be flown either in the simulator or the aircraft itself. Mission data is recorded in the Gripen the same way it is recorded in the training simulator and both the aircraft and simulator can debrief the mission. The Gripen is Saab Aerosystem's most important product. It is built around a completely digital infrastructure that is not only multi-role-able to perform air-to-air, air-to-ground and reconnaissance roles-it is also swing-role. By pressing a few buttons, the pilot can reconfigure the Gripen's systems in flight, allowing the plane to operate in more than one role during the same mission. SGI Onyx family visualization systems were originally used to power the first advanced flight simulator for the aircraft, and using SGI's open IRIX(R) operating environment enabled Saab to do their own software development to create just the right tools for the job. The digital infrastructure also means that the Gripen can be continuously updated and developed, reducing the life-cycle costs of the aircraft. The PETRA powered by SGI Onyx is part of the ongoing updating and development that continues to prove the Gripen a highly cost-effective defense system for homeland security and enables the fighter to successfully compete in the international market. "Saab Aerospace has used SGI graphics supercomputers since 1996 to create both display simulation and exterior image generation and we are very pleased to continue that relationship which led to the development of the supersonic Gripen, the world's first all-digital combat aircraft," said Steve Detro, director, DoD Programs, SGI Federal. "Throughout the world, military training facilities striving to hone skills under the most realistic conditions turn to SGI for state-of-the-art image generation capabilities that enable quick processing of the ever increasing mountains of data that must be analyzed for effective action." Saab Aerosystems' purchase includes the four 16-processor SGI(R) Onyx(R) 350 visualization systems with SGI(R) InfiniteReality4(TM) graphics subsystems and 16GB of shared memory. Onyx 350 will drive the up to 8-channel display system, which is configured as a half dome with a 2 meter radius and a plus/minus 120 degree field of view. Saab runs its own proprietary software on top of SGI(R) OpenGL Performer(TM) open-platform application programming interface. Two of the four PETRA systems powered by SGI Onyx for the Gripen will be sold to the Swedish Defense Material Administration, one to Hungary and one to the Czech Republic. SGI will ship two Onyx 350 systems to Saab in December. The remaining two Onyx 350 systems will be delivered in the third quarter. Saab expects to have the first PETRA flight simulation system ready by April. Source: United Business Media Newswire
NLX Name Changes - News Editor @ 20:36 PST Rockwell Collins announced today that the integration of the simulation and training capabilities gained last year with the acquisition of NLX has progressed well and the business will now be recognized as Rockwell Collins Simulation & Training Solutions. Through this business, Rockwell Collins provides a wide range of training systems, upgrades, modifications, curriculum development, electronically delivered learning, engineering and technical services for many military and commercial platforms. These platforms include the Bombardier Challenger 300 simulator, the U.S. Army’s Additional Black Hawk Flight Simulator (ABHFS) Program, the U.S. Navy’s P-3C Visual System Modifications and E-2C Hawkeye Weapon Systems Trainer, and the B-1 and B-52 Training Systems for the U.S. Air Force. Our integration progress reflects the increased level of global support we are now positioned to provide our customers, said Tony Syme, vice president, Simulation & Training Solutions for Rockwell Collins. The integrated development of avionics and simulation systems creates powerful new synergies that deliver more innovative solutions, said Collins Aviation Services Senior Vice President and General Manager Harry Gregory. Rockwell Collins is leveraging technology and open systems architecture to deliver simulation and training solutions that meet or exceed customer requirements. Rockwell Collins acquired NLX in December 2003. Source: Rockwell Collins Press Release Tuesday, January 06, 2004
In Simulation, Small Can Be Big - News Editor @ 23:23 PST SCT, located in Conklin, is a six-employee company with some big-name clients. Specializing in the development of control-loading software for use in a multitude of flight simulators (or sims), SCT has worked with companies such as Lockheed Martin Systems Integration -- Owego, NLX, L-3 Communications and the U.S. military. "There's not that many people that do what we do," said John Fuller, one of the company's two owners. "We make the simulator feel like the actual aircraft." Before launching SCT in 1997, Fuller worked for nine years as an engineer for Link Flight Simulation and then for Ensco. Most of the people he now employs at SCT have worked in the flight-simulation field before at Link Flight Simulation, Fuller said. Although part of a relatively small niche market, simulators play a key role in any commercial or military flight project. They help pilots learn from their mistakes before even getting off the ground and can be used over and over to train hundreds of flight crews. "Ideally they use sims for things they don't want to try yet in the aircraft," Fuller said. "Sims have to have all the things that can go wrong. They train for bad things all the time in the simulators." While SCT doesn't put the flight simulators together on premises, it develops the software that makes a simulator behave like a specific aircraft such as a Boeing 737, F-15 fighter jet, or a Blackhawk helicopter. After collecting data for each aircraft, including physical dimensions and variables such as force versus position and position versus time, SCT links the software to a set of motors that will eventually drive the simulator's mechanisms. Once inside the simulator, the device can control every aspect of the make-believe aircraft, from pitch and roll to seat vibrations and resistance of the control stick. "The pilot doesn't have to think of what to do when he's flying the real aircraft; he's already been trained for it in the sim," Fuller said. "They can then use it to try high-risk maneuvers." Training for high-risk and unexpected circumstances in a flight simulator not only can save the life of a pilot and passengers, but can save a commercial airline or the military millions of dollars. But building a simulator is not cheap, and it takes time. It takes SCT anywhere from about 12 weeks to a year to complete the control- loading mechanism for a sim and about 18 months to have it built from the ground up. The company's fees for its part in the whole process are relatively inexpensive at about $75,000 for a helicopter system and $150,000 for a large commercial aircraft. That cost is minuscule in comparison to the price of a complete flight simulator, which can run about $15 million for a commercial aircraft and even more for a sim used by the Air Force, Fuller said. (In comparison, an F-16 Fighting Falcon built by Lockheed Martin Corp. costs roughly $19 million). Mike Stricek, vice president of engineering at Doron Precision Systems Inc. in Binghamton, has worked with SCT before on several projects. Doron, which provides simulators for the Broome County Sheriff's Department, specializes in vehicle simulators and has incorporated some of SCT's software in simulators for transit buses, cars and tractor-trailers. With slight modifications, the same technology used by SCT to make the control stick of a Blackhawk helicopter feel the way it does is also used to make a car simulator. SCT provided Doron with a steering control device that is able to make a car sim feel more realistic, Stricek said. The wheel behaves the same way all real steering wheels do by responding to a bump in the road, duplicating off-road rumble and resistance through turns. "This area is known for sims," Stricek said. "It's the home of simulation. And they're very highly regarded in this industry, especially in force feedback." At the moment, however, SCT is predominantly working on military projects, something that has picked up only in the last couple of years. "The commercial airlines side has dropped off," Fuller said. "They just aren't putting any money into their sims right now until they see a profit." He expects, however, that military demand will slow down in the near future and commercial airlines will once again enter the market, a cycle that seems to repeat itself in the simulator business. Source: pressconnects.com
Dynamic Flight Simulator Lets Swedish Pilots Pull Gs - News Editor @ 23:12 PST The Swedish air force is "flying" a combined flight simulator/centrifuge that doubles as a JAS 39 Gripen fighter-pilot trainer and medical laboratory for researching the stresses of high-g combat. The system allows line pilots to pull up to 9g and command any pitch and roll attitude, ensuring their experience will differ little from actual flight. Designed for exceptional flexibility and realism, Sweden's Dynamic Flight Simulator (DFS) in Linkoping, Sweden, is believed to be the first fourth-generation device--a ground-based system capable of pulling gs and replicating modern tactical-aircraft flight conditions--deployed by an air force. Such simulators are a fairly recent advancement, although several companies have been working on centrifuge-based systems for years. A handful of fourth-generation units are being marketed globally, and by all accounts, competition is fierce, with myriad claims and counterclaims (AW&ST Dec. 1, 2003, p. 70). However, one Swedish test pilot, who has evaluated most of the systems now available, said realism and fidelity vary considerably. I had an opportunity to "fly" the Swedish air force's DFS at the Defense Materiel Administration (FMV) test and evaluation center here, and was impressed by how closely the system approximates a high-performance aircraft. There are unavoidable physical limitations, of course, but it was definitely the most realistic flight simulation I'd ever experienced. Basically a fighter cockpit mock-up mounted on the end of a centrifuge arm, the Swedish DFS represents a quantum leap in fighter pilot training and flight physiology research capabilities. It was designed and built by California-based Wyle Laboratories, and boasts a number of features critical to emulating high-g flight, such as: * A high-torque direct-current (DC) motor that drives the 30-ft. centrifuge arm. Wyle engineers set out to develop a centrifuge-based simulator tailored for training and evaluating pilots in an elevated-g environment, yet flexible enough to also conduct aeromedical research. Consequently, they focused on features that would ensure rapid response times. "We wanted to give pilots the ability to 'fly' and interact with the environment rather than just be a passive [centrifuge] rider," said Will Roberts, program manager for Wyle Laboratories' DFS programs. "We've come a long way in being able to translate the six degrees-of-freedom you get in an aircraft into the three degrees-of-freedom that we can control in a centrifuge. It's not perfect, but we think it's pretty good. There's room for more research to make it even better." Swedish air force (SAF) officials were prompted to invest in a high-g simulator when they acquired the JAS 39 Gripen, a modern 9g fighter capable of rapid g-onset (going from 1g to high-g loads in a very short time) and sustaining those levels. They recognized that aircraft and pilots could be lost to the "G-Loc" (g-induced loss of consciousness) phenomenon, where humans can quickly pass out when subjected to high gs. Incidents early in the Gripen program led SAF leaders to conclude that not enough research had been done in the area of high-g physiology. Consequently, they decided to develop world-class expertise in this arena--while still training SAF pilots to properly handle g-caused stresses inflight, noted Kent Engstrom, FMV program manager for DFS. Research is needed to better understand physiological phenomena "the moment before G-Loc and the moment after [recovering] from G-Loc--how you regain psychomotor and cognitive abilities with various delays," said Leif Pettersson, an FMV test center operation engineer. "These are possibilities for research . . . that I don't think anybody has done before." The system I "flew" was "mechanically unique," Roberts said. "The arm's structure is like a wing--hollow aluminum with a stressed skin. Other centrifuges use a box-beam construction. The stressed-skin [design] gives us a much better natural frequency, which allows us to do a lot of things without being disturbed by structural effects." The lighter, stronger arm simplifies controlling g-onset rates, and keeps start/stop stresses lower, which enables the use of a smaller drive motor. Wyle chose a 1,900-kw. Westinghouse DC motor originally designed for steel mill applications, connected directly to the centrifuge-arm drive system. It delivers about 7 megawatts of peak power in approximately 100 millisec. when a pilot pulls sharply on the simulator's cockpit control stick, demanding a high g-onset rate. "WE CAN GO FROM [ZERO] to maximum g-onset in about 120 millisec. with this motor," Roberts said. But because the high power demand is very brief, the motor doesn't overheat. Before my DFS mission, a flight surgeon attached electrocardiogram sensors to my chest, allowing real-time monitoring of heart parameters. He assured me that was standard procedure. I also was fitted with a Swedish-type g-suit, then strapped into a Gripen ejection seat mounted in the DFS' gondola--a ball-type structure suspended at the end of the centrifuge arm. The Swedish AF simulator/centrifuge gondola emulates a Gripen fighter cockpit with a three-screen out-the-window visual display. Pilots are routinely "wired" with sensors that monitor heart functions. Up to 400 electrical power, video, computer, medical and other signals are transferred from the cockpit to a control room via numerous slip rings that also allow unrestricted rotation of the gondola and arm. Five channels of gases--such as oxygen--also are passed through a sophisticated slip-ring system. Like all Swedish pilots who go through training in the DFS, I did not wear a helmet or mask, because controllers need to monitor facial expressions during high-g maneuvers. After a thorough briefing and cockpit preflight by Capt. Christopher Gruv, I was closed into the gondola, and controllers prepared for the "flight." Maj. P.A. Klingstrom, an aerospace physiologist pilot and training specialist, served as the mission controller, talking to me via intercom. Initially, the centrifuge arm turned at a slow, steady speed, producing a 1.5g "steady state" or baseline. Inertial restrictions require that the arm be in motion before a pilot starts pulling high-onset gs. Rapid g-onset would demand almost infinite power to go from a dead stop to a 10g/sec. rate the system is specified to deliver. Roberts said the DFS has demonstrated a 14.5g/sec. rate with a full load, plus an additional 100 kg. (220 lb.) of weight. I had been told to fly the simulator however I wanted, but with a couple of cautions--no rapid negative-g pushovers, and don't be too aggressive when rolling immediately from a right-bank high-g condition to a left-bank high-g maneuver. The system would respond, but these inputs would cause unneeded stress on its components. I made a few gentle turns to get a feel for the Gripen flight controls, noting that the three-screen visual scene produced a comfortable perception that one was flying contact. Then I rolled into a steep turn and pulled on the stick, advancing the throttle a bit. The DFS responded instantly, smashing me into the seat. Over the next few minutes, I maneuvered in the low-g arena, eventually pulling up to 4.7g. I've pulled many more in actual aircraft, but never particularly enjoyed what some call the "practice bleeding" of high-g flight. I was quickly convinced the DFS would respond rapidly to control inputs, and could easily deliver the requisite normal acceleration to produce tunnel vision and make me gray-out. I had no desire--or need--to demonstrate my limited "g-tolerance." Flying daily in a tactical aircraft, a crewmember develops a capacity to handle high-g conditions. He instinctively tightens his legs and abdominal muscles, assisting the anaconda-like g-suit's inflation, which squeezes legs and abdomen. Pilots are also trained to perform a specific anti-g "straining maneuver" that involves short-pulse breathing, while keeping the lower body muscles tensed. All this effort is essential to keep one's blood flowing to the head as g-loads increase. If blood drains from the cranium while pulling high gs, vision seems to close in from the edges, until it appears you're looking through a small tube. That's called tunnel vision. Higher gs--or relaxing at the wrong time--can close that tunnel completely, and the eyes-wide-open pilot sees nothing but a gray curtain. Objects are no longer visible, but he can still hear the radio and engine, and is still flying the aircraft. He's functioning, but just can't see anything. At this point, a pilot or backseater is only a g or so away from having his world go completely dark, a condition known as "blackout." Then, he's no longer able to help himself or fly his aircraft. Recovery requires reducing g-loads on the body, but after blacking out, human beings are typically slow to respond. Many seconds or even a minute can pass before a pilot is really capable of controlling his aircraft properly. The DFS is an effective means of training pilots to resist graying- or blacking out by properly performing the anti-g straining maneuver under controlled conditions. Some catch on faster than others, but all can be trained, according to Klingstrom, who has flown hundreds of high-g sorties in centrifuges. He's known here as "The G-Monster." As mission controller, he next suggested I fly a tail-chase profile, presenting another aircraft in my simulated HUD. I was at the aircraft's 6 o'clock position, and my job was to stay on his tail as he maneuvered. I noted that the simulator's mechanization was so good that I felt as if I really were flying, pulling whatever gs were necessary to stay with the target as it accelerated, climbed, dived and turned sharply. The profile was an actual mission Klingstrom had flown in the DFS, where data were captured and "canned" as a target for training missions. As long as I kept my head motionless, pressed against the seat headrest, the simulator closely replicated tactical flight, I felt. Experimenting a bit, I turned my head slightly to the left and right, and tilted it up and down. Immediately, my vestibular system sensed I was rotating. However, pilots are told that will happen--so don't do it. However, rolling the "aircraft" and pitching up and down produced very realistic feelings of flight. The fully gimbaled gondola is unrestricted in pitch and roll, but sophisticated, well-tuned control algorithms are required to produce such realism. "WE HAVE TO DO some strange things to . . . fool your vestibular system," Roberts said. For example, "when the arm speeds up, we compensate for the increased gs by pitching the seat forward, because the [human] vestibular system is sensitive to rotational acceleration. You stay aligned with the force vector. "How fast we accelerate the arm, then accelerate the pitch and roll axes [simultaneously] is a big factor in the design," he added. "This is a simulator mounted on a centrifuge, not a centrifuge that happened to have a simulator in it, so that [required] a different approach. Getting the simulation right was [a priority]." Maj. Richard Ljungberg, a Swedish test pilot, has flown many tedious hours in the DFS, trying to tweak and optimize those control algorithms to ensure the simulator closely approximates actual Gripen flight. "I've changed a lot of numbers [related to] movement in roll, pitch and delays. The biggest thing is g-onset response time, and the ability to control the centrifuge from low gs to high gs. If you have a long delay [between] pulling the stick and getting the gs, you learn the [wrong] response coordination. If you're at high gs, and you feel like you're starting to gray-out, and you unload [relax stick pressure], you want the machine to respond. If you unload and nothing happens, it's ugly." That can lead to negative training, doing more harm than good. My flight was only about 30 min., but long enough to convince me that the DFS emulated high-g tactical flight quite well. Through clever algorithms and persistent refinement, the Wyle engineers and Swedish pilots assigned here have done a good job of simulating six-degrees-of-freedom flight. Probably the most telling validation of DFS fidelity comes from SAF pilots who go through training here. After flying a tail-chase scenario and trying to shoot down the simulated target aircraft, pilots are informed their time is up. They often respond, "Just one more, OK?" Normally, pilots hate simulator training. "I think we've come a long way, creating a centrifuge/simulator that pilots can actually enjoy flying," Ljungberg said. "Normally, when you go to a centrifuge, you're like a dog--just sitting there, trying to strain and survive the g-forces. But in this one, you're in control. Here, you pull gs the same way [you do] when you go out and fly. It's a good training tool." The DFS also ensures pilots develop desirable habits in coordinating stick movement with anti-g straining maneuvers. About 60 pilots have been trained in the DFS, but the FMV/Wyle team here is continuing to refine both the initial and refresher programs. However, they also see tremendous potential for serious physiological research. Ljungberg mentioned experiments to determine how a pilot's perception of color and his hearing degrade at high-g loads, for example. Combat scenarios involving target acquisition and tracking, missile-firing and other tasks can be explored to determine how pilots perceive an objective's location under high-g loads. Similarly, the position of cockpit controls, or even the color of head-up and head-down display symbology, might be altered as a result of research findings. "The sky's the limit," Roberts said. "We're just barely getting started." Source: Aviation Week & Space Technology Wednesday, December 17, 2003
Boeing to Build 7E7, In a Familiar Spot - News Editor @ 07:12 PST “I'm very happy to share with you the board's decision to go ahead and offer for sale the 7E7 to airlines around the world," CEO Harry Stonecipher told thousands of Boeing workers at a company meeting in downtown Seattle Tuesday afternoon. Reports of the decision had been hinted at in recent weeks, but the board's final move didn't come until Monday. The plane, a super-fuel-efficient jet made largely of lightweight composite materials, will be assembled at Boeing's facilities in Everett, Wash., about 25 miles north of Seattle. Thousands of workers at that plant, where such planes as the 747 and 777 currently are produced, had been anxiously awaiting a decision about the plane. Components for the new 7E7, however, will be constructed around the world, with pieces built everywhere from Wichita, Kan., to Japan. Boeing itself will build about 35 percent of the airplane, with contractors constructing the rest. The company has telegraphed its willingness to build the plane, going so far as to show off mock-ups of its planned interior, but it wasn't until this week that its board gave its OK. Their decision was unanimous, Stonecipher said, both in a vote to go ahead and in a choice of location. “The board had more questions about the airplane than you can imagine … and it’s because they love the airplane,” he said. The 7E7 Dreamliner, as it was dubbed, will rely on advanced manufacturing and new design techniques to operate long-haul flights -- nearly 8,000 miles -- while allowing airlines to trim their operating costs. Boeing included the "E" for efficiency, a signal to its customers that it understood their need to fly farther for less money. “I think we’re going to have some very major customers step up early,” Alan Mulally, president and CEO of Boeing Commercial Airplanes, said at a press conference later in the day. “It’s not just about one or two or three customers, it’s about a view of the world.” However, the company has yet to announce a customer for the jet. While officials said some 50 current Boeing customers have expressed interest, no one has yet agreed to buy it. And even when customers are signed up, the plane still needs years of development. Some decisions, like which engines will be used, could come early next year. But the jet's final form and initial assembly won't be done until 2005, with flight testing in 2007 and the first deliveries in 2008. 'They really need to do this' "If they succeed in making the product as good as advertised, it will be a positive for the company," said Craig Fraser, aerospace analyst for Fitch Ratings. "They really need to do this. It's probably a greater risk to do nothing," Analysts have been lackluster in their outlook on Boeing. While its commercial airplane division has seen a few bright spots, it is set to deliver about 300 airplanes this year, down from 527 in 2001. The 7E7 will put Boeing in even more fierce competition with Airbus, which will be first to market with its A380 superjumbo jet. The A380, set for service by 2006, is also designed to be far more efficient than current long-haul jets, but similarities with the 7E7 end there. While the long-range 7E7 is designed for 200 to 250 passengers, the A380 will carry over 550 passengers, far more than even the most packed 747. The two planes define a battle over competing visions of air travel. Airbus sees potential in carrying large numbers of passengers over long distances, where they can connect at hub airports to their final destinations. Boeing sees growth in point-to-point services, allowing airlines to fly direct international flights between smaller cities: San Francisco to Milan, Minneapolis to Paris. The 7E7 will also round out Boeing's fleet offerings. Its 737 -- the most produced commercial jet ever -- remains popular for domestic and short international flights. The 777 provides long-haul capabilities for large numbers of passengers -- though fewer than the 747 or A380 -- and the 7E7 could offer mid- and long-range direct service between smaller markets. At the same time, airlines are able to fly intercontinentally with the extended range of new 737s -- though few carriers have yet pursued that option. And a shorter-haul 7E7 version will carry up to 300 passengers and have a range similar to a 737, but should cost less to operate. "The 7E7 will be a dramatic improvement from all we hear about in terms of efficiency, in terms of range," said Aaron Gellman, professor of transportation studies at Northwestern University. Too many aircraft "Not a lot of it is coming back out of the desert," said Fraser. "Those planes are generally old and not cost efficient." In that way, the 7E7 reflects Boeing's take on the commercial market. It scrapped two earlier projects -- a high-speed sonic cruiser and the 747X, a major overhaul of its trademark jumbo jet -- when it became clear that its airline customers were more interested in cost savings. Mulally said Tuesday that its versatility would also be a major selling point with many airline customers who are trying to simplify their fleets, and said he saw the potential to market the plane to new low-cost airlines as well as traditional international carriers. "I think we'll see a lower-cost, international, global carrier" using the 7E7, he said. Win for Washington state Boeing's commercial airplane division has been tentative in its desire to move operations, even as thousands of Boeing workers were laid off since 9/11. And despite the Chicago move, Washington Gov. Gary Locke and state lawmakers approved a $3.2 billion package of tax breaks to convince Boeing to build the 7E7 either in Everett or at a remote site in the eastern Washington town of Moses Lake. Without the 7E7, Locke said after Monday's announcement, "it would have meant the end of Boeing building airplanes in the state of Washington." The actual impact of the 7E7 assembly will be modest, adding perhaps 800 to 1,200 new jobs to payrolls in the state. But the state projects thousands more potential jobs could be created with suppliers and service businesses, and the symbolism of the decision is likely to resonate with residents and employees worried that Boeing might simply pull up stakes and move all its operations. "This really will go a long way in reinstilling confidence in the company from all stakeholders," said Bill Dugovich of the Society of Professional Engineering Employees in Aerospace, a union that represents many Boeing engineers. The Everett site currently manufactures all Boeing's widebody aircraft, including the 767, which is slowly being phased out of commercial service but had been planned for use as a military tanker. Those plans were put on hold last month after the discovery that Darleen Druyun, a Defense Department official who had helped negotiate the deal, was simultaneously being recruited for a key executive post at Boeing. That finding led to the firing of CFO Mike Sears and then Condit's resignation. The Pentagon is investigating the details of its deal before it approves the tanker order. No other option? Sales of the 737 and 777 have been stable, but Airbus' orders gained momentum in the past several years, despite the global airline industry facing a slump. The European consortium's ability to unveil the A380 well before the 7E7 gave it a jump in soliciting customers, since it will have the A380 flying at least two years before the 7E7 is delivered to its first customer. Though Boeing downplayed Airbus' strong sales, many saw it as a sign Boeing had lost its way. Tuesday's announcement helps to signal that Boeing is willing to move forward. It still faces steep development costs in building the 7E7, perhaps as high as $10 billion. But Gellman noted that Mulally has exercised stiff financial discipline and ensured the company was paid fully for new planes. Tuesday's announcement was also designed to charge the spirits of Boeing employees, who were largely overjoyed at the long-awaited announcement. "Some people go through their whole career and don't get to experience something like this," said Tom Cogan, the chief project engineer on the 7E7. "As a young engineer, this is what we all dream about." Source: msn.com
A Brand New Aircraft in Search of Buyers - News Editor @ 07:10 PST The Boeing Company, which is expected to announce plans today to market its 7E7 jetliner, faces the immediate and challenging task of finding buyers for the plane, a medium-range aircraft that is its first new plane in more than a decade. Boeing declined to say yesterday whether its board, which met Sunday and yesterday in Chicago, had given final approval to take orders for the plane. A second decision would be required before the 7E7 could go into production, but that would not be made before Boeing accumulated orders for the jet, nicknamed the Dreamliner. Boeing said any announcement would come today in Seattle, where it was based until a few years ago. The company was widely expected to announce its plans to employees at Payne Field, the center of its operations there, and then hold a news conference. The meeting was the first for Boeing's new chief executive, Harry C. Stonecipher. He came out of retirement to succeed Philip M. Condit, who resigned on Dec. 1 in the wake of a scandal involving a fuel-tanker contract with the Pentagon. Officials in Everett, Wash., Boeing's main manufacturing site, are eagerly awaiting word from Chicago headquarters on the proposed jet, which is designed to be 20 percent more efficient than the Boeing 757 it would replace. "We are on standby," said Kate Reardon, a spokeswoman for the Everett mayor's office. Local officials have been lobbying for months to win the final assembly work for the plane, which has a sharply curved roof and a sloping nose. Instead of being produced under one roof, the 7E7 would be built in a modular assembly process. Crucial pieces, like the wings, fuselage and tail, are being parceled out in sections to various plants in the United States, Canada and Australia. Other work has been awarded to companies in Japan and Italy. All those sections would ultimately come together in an assembly project resulting in 800 to 1,200 jobs, a fraction of the 40,000 jobs Boeing has eliminated in the United States this year in the wake of slumping industry traffic and deep losses since the terrorist attacks of September 2001. None of Boeing's American customers have yet expressed interest in the jet, which will seat 300 or more passengers in a one-class configuration with two aisles, compared with 280 passengers in the single cabin of a 757, which has one aisle. And just two international carriers, Japan Air Lines and Emirates, have indicated that they would like to discuss the plane with Boeing, once it decides to go forward with production. Boeing has built more than 1,000 757 jets, but the last will be built in 2004. It decided to discontinue the 757 in October, only hours after Continental Airlines scrapped plans to buy 11 of the jets, ordering smaller 737's instead. Nonetheless, Boeing executives were expected to go ahead with the 7E7 project, simply because they would otherwise see Airbus Industrie, their global rival, move out of sight in a vapor trail ahead of them. That may already be happening. The first 7E7 jet would go into service in 2008, while the Airbus A330, the 7E7's competition, is already in the fleets of Northwest Airlines, China Airlines and Austrian Airlines, among others. Boeing has not introduced a jet since the 777 in 1990. Analysts say Boeing may have lost valuable time in the 90's working on two other, flashier jets that it ultimately canceled: the Sonic Cruiser, a supersonic plane, and the 747X, which would have been the successor to the 747 and a competitor to the giant A380 that Airbus is marketing. On Monday, Airbus said Malaysia Airlines ordered six A380 jets, bringing total orders to 129 planes from 11 airlines. The A380, which would seat 555 passengers, will be delivered to customers in 2007. Boeing should know by spring whether it has enough 7E7 orders to begin production, said David Fitzpatrick, a partner with Deloitte & Touche USA in Seattle. At minimum, it needs about 100 orders, and ideally 200 to 250, to move ahead, he said. He said he did not think that airlines' dearth of interest now necessarily spelled trouble. "You can bet that there are people waiting to commit to this," Mr. Fitzpatrick said. "In the first few months, they should accumulate a good book of orders." Airlines that make deals first often have an opportunity to get planes at a lower price than Boeing will try to charge later, when the plane's viability has been proved, analysts said. Boeing has not disclosed what a 7E7 would cost, or what kind of profit margins it can expect on the jet. Analysts estimate that it is spending a minimum of $7 billion on the project, and that it will probably earn an operating profit of 4 percent to 5 percent, half what Boeing earned in its most profitable years. Aircraft manufacturers look at projects like the 7E7 as long-term investments, said Roman Szuper, a credit analyst with Standard & Poor's. Like the 757, which went into service in 1982, Boeing would be expected to build the 7E7 for the next 20 years, he said. "If the decision is correct,'' Mr. Szuper said, "they can pick up market share lost to Airbus." That company, a European consortium, is expected to pass Boeing for the first time in 2004 to become the world's biggest commercial aircraft maker. But he added, "If the decision is wrong, it could be very costly," not just for Boeing but for airlines that buy the plane. While the 7E7's sleek appearance and interior comfort will undoubtedly appeal to passengers, he said, airlines will place a higher priority on an attractive bottom line. "The shape and features are a good thing," Mr. Szuper said. "But they have to have good economics and efficiencies." Source: NY Times Sunday, December 14, 2003
Federal Prosecutors Probing 2 Ex-Employees of Boeing - News Editor @ 21:18 PST The probe, led by the U.S. attorney in Alexandria, is the latest faced by the aerospace and defense giant in recent months. The investigation, first reported by the Wall Street Journal, extends an inquiry into conduct by Michael M. Sears, Boeing's former chief financial officer, and Darleen A. Druyun, a former senior vice president who had been an Air Force procurement officer, whom Chicago-based Boeing fired last month for unethical behavior. Charges are not imminent, but "we might be turning the corner very quickly on this,'' said a law enforcement source. "You're talking potentially corruption and conflict of interest." The Justice Department declined to comment, and a spokesman for the Defense Criminal Investigative Service did not return a call for comment. The probe, which was launched within the past four months, also includes possible obstruction charges, according to government sources. "We have been cooperating with the Department of Justice and DOD [inspector general] and have been providing them some information for some time," said Boeing spokesman Larry McCracken. "We're not trying to stonewall with them." A Boeing internal inquiry found that Sears violated company rules by talking to Druyun about a position at the company while she was overseeing Boeing contracts at the Air Force, including a program to lease and buy Boeing 767s. They initially made contact in October 2002 through Druyun's daughter, who works in Boeing's St. Louis office, then met the next month in person. That meeting took place at least two weeks before Druyun recused herself from making decisions involving the company, Boeing's inquiry found. Sears has denied wrongdoing, and Druyun has declined to comment. If Druyun did engage in employment discussions while overseeing the Boeing contracts, she could face criminal charges for violating federal procurement rules, according to industry and government officials. The Pentagon inspector general is already looking into whether Druyun and Sears tainted the $17 billion deal to buy 80 and lease 20 tankers, which refuel fighter jets in midair. At the time of the alleged inappropriate contact, Druyun was negotiating the controversial deal on the Air Force's behalf, and some in Congress have said it appears that she acted as an advocate for Boeing instead of taxpayers. The deal has been put on hold pending the completion of the inspector general's inquiry. It is also expected to face more congressional hearings. Secretary of the Air Force James G. Roche has asked the inspector general's office to look into all Boeing-related contracts that Druyun supervised in the past few years. If the tanker contract is not approved, Boeing could be forced to close down the production line for the 767 -- the tanker aircraft -- as early as 2005 and take a charge of about $200 million. The company began building a wing of the first plane yesterday in Washington state. Boeing is under investigation by at least four entities, including the U.S. attorney's office in Northern Virginia and the Pentagon's inspector general, which recently issued a subpoena in its inquiry. A grand jury in Los Angeles indicted two former Boeing employees on charges of stealing trade secrets from Lockheed Martin Corp. during a rocket-launch competition. The Senate Commerce, Science and Transportation Committee, chaired by Sen. John McCain (R-Ariz.), has also been conducting an inquiry into the tanker deal. Source: Washington Post
Sunday, December 07, 2003
Boeing Scandal Gives Airbus a Chance - News Editor @ 23:50 PST A source close to the European group said it was ready to speed up development of key technology for midair refueling tankers, after the Pentagon suspended a deal with Boeing for 100 of the planes. EADS is determined to avoid giving the impression it might seek to benefit from Boeing's difficulties, which arise in part from allegations that it obtained and used confidential EADS pricing information to win the tanker deal. A spokesman for the European defense and aerospace giant said there was "no indication" that it might be reconsidered for the suspended contract. But a source close to EADS and Airbus said the group was ready to bring forward development of a refueling boom to link U.S. military planes with EADS tankers. EADS has already spent about $97 million to improve its bid for the next Pentagon tanker contract expected in 2005-6. "Should something come up earlier, we would speed that up," said the source, who asked not to be named. The Pentagon announced it was suspending the multibillion-dollar Boeing contract on Tuesday, a day after the surprise resignation of Phil Condit, the company's chairman and chief executive, who said he hoped his departure would help end "controversies and distractions" dogging the company. A week earlier, Boeing sacked chief financial officer Mike Sears and vice president Darleen Druyun, the former military procurement official Sears recruited while she was still working for the government and in a position to influence contract decisions. Boeing is under investigation by the Pentagon over the tactics it used to win the contract — despite a cheaper bid from EADS. "Airbus probably now has a much better chance," said Barbara Beyer of Avmark Inc., which advised the Pentagon on the tanker deal. "They did look very seriously at Airbus, so that whole thing may be opening up again." Much will depend on the results of the investigation, Beyer said, and the attention it receives from Congress. Before the contract was delayed, the Air Force's top acquisition official sent messages urging Pentagon officials to sign the deal, The New York Times reported in Saturday's editions. In the e-mail messages Nov. 25 and 26 to senior officials, Marvin S. Sambur wrote, "We are ready to sign today." He added that "delaying until January will cause harm to the Air Force and Boeing." Sambur told the newspaper he had simply stated his opinion in the e-mails. "Nobody's trying to circumvent anything," he said. Sambur also defended his decision last spring to forward to top Boeing executives copies of internal Pentagon correspondence that outlined the government's negotiating strategy. He said it was part of a strategy to show Boeing "we were ready to pull the plug." Boeing increased its focus on military business in the wake of the Sept. 11 attacks, to lessen its dependence on the volatile market for airliners. Its big new wager in commercial aviation is the fuel-efficient 7E7 Dreamliner, which is planned for 2008 — two years after the Airbus 555-seat A380 Superjumbo is scheduled for operation. Some industry-watchers are skeptical about what Airbus might gain from Boeing's woes, and whether it might have a second shot at the tanker deal. Richard Aboulafia of the Teal Group, an aerospace and defense consultancy, said the original contract decision was "driven partly by a need to satisfy union-voting machinists — the kind that congregate in Washington state, not Toulouse." Boeing has laid off more than 40,000 workers, mainly in the states of Washington and Kansas, and the suspended deal holds the promise of creating jobs in both locations. EADS now has 20 production sites in the United States, and has pledged that much of the work on the proposed tankers would be done by Americans. "This scandal certainly gives Airbus a foot in the door," Aboulafia said, "but there's still no denying that Boeing is the incumbent." Pierre-Antony Vastra, an aerospace analyst with French brokerage CDC Ixis, said all eyes were now on the British defense ministry — soon to announce a smaller tanker deal with either Boeing or EADS and their partners. "There's always the fear Boeing might have used information it obtained on Airbus for the British bid," said Vastra. "The British government will be aware of that." Success in Britain would put EADS in a stronger position to bid for later U.S. contracts, he added. A British defense ministry spokesman said there were no plans to delay the announcement of the contract decision, due within two weeks. But Laurie Price, a British parliamentary adviser on aviation, said the suspension of the U.S. contract could still prompt a similar move by London. Boeing has often attracted controversy in its struggles with rivals for public contracts. The Pentagon has banned it from lucrative satellite-launch contracts for stealing trade secrets from Lockheed Martin. By contrast, France's Aerospatiale Matra, Germany's DaimlerChrysler Aerospace and Spain's Casa could always count on a guaranteed flow of orders from their loyal governments — and little domestic competition — until the three national champions merged in July 2000 to form EADS. EADS raised U.S. hackles in May, however, when Airbus allowed a European consortium to resubmit a lower bid to supply engines for its A400M transport plane, after an offer by a subsidiary of Hartford-based Pratt & Whitney that came in cheaper. The consortium, EuroProp International, eventually won the contract, worth an estimated $3.4 billion. Source: AP via Yahoo
Boeing Confident on Stalled Plane Deal - News Editor @ 23:48 PST DUBAI (Reuters) - Boeing said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, vice president, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. Citing internal e-mail messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. Critics have portrayed the deal as costly, unnecessary and unseemly. Two top Boeing officials were fired after what the company called "compelling evidence" came to light of misconduct on the officials' parts regarding the relationship between the aircraft giant and the Pentagon. Boeing's chief executive, Philip Condit, resigned on Monday over the controversy. He was replaced by Harry Stonecipher. Kronenberg told Reuters that the resignation of Condit would not have an effect on the company's overall strategy. "Despite the changes in the leadership of the Boeing company over the past couple of weeks, the overall direction of the company has not changed. We have a sound business plan which is both on the commercial sector and the strong defense space sector and we think that's the way to go," he said. "In terms of leadership itself, Harry Stonecipher announced the leadership team last week. Jim Albaugh was one of that team and continues as president CEO of the Integrated Defense Systems Company," Kronenberg said. Douglas Groseclose, a senior sales vice president at Boeing Commercial Airplanes, told Reuters that the pause in tanker negotiations would have no immediate effect on the 767 line. "There is a possibility that if demand starts to erode or go down we would take a look at things," he said. "But not yet. Right now we're pretty much locked in what we're building today," Groseclose said, but declined to give out current production rates. Both Boeing executives were speaking on the sidelines of a news conference to kick off the Dubai Air Show this week. The world's largest plane maker said the pause would not affect its Middle East market, where it is vying to meet the challenge of rival Airbus with the launch of a new luxury plane dubbed the 7E7 Dreamliner. Boeing estimates the Middle East market will be worth some $10 billion over the next five years. Boeing said it was also in discussions with officials in Iraq (news - web sites) which is rebuilding its infrastructure after the U.S.-led war that ousted President Saddam Hussein (news - web sites). Source: Reuters via Yahoo Dubai's Crown Prince inaugurates Emirates-CAE Flight Training Centre - News Editor @ 23:41 PST The new Emirates-CAE Flight Training Centre was officially opened today, heralding a new era in aviation as the first training facility in the Middle East to be qualified to both JAA and FAA standards. The centre is also the first outside North America to offer pilot and maintenance training for the Hawker 800/800XP and the Gulfstream IV and V full flight simulators, and it will be adding a second Boeing 737NG/BBJ simulator to meet customer demand. His Highness General Sheikh Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai and the UAE's Minister of Defence, officially inaugurated the centre. He was accompanied by His Highness Sheikh Ahmed bin Saeed Al-Maktoum, Chairman of Emirates; and Derek H. Burney, CAE's President and Chief Executive Officer. Also attending the ceremony were VIPs and leading members of the international aviation industry. The three-storey state-of-the-art facility is the result of an agreement signed in 2001 between Emirates and CAE. The 80,000-square-foot building is located next to Dubai International Airport. It is expected to employ more than 100 people by mid-2004. The total investment from both parties is some $US100 million under a 10-year agreement. The centre's customers had been training previously at a facility in the Dubai Airport Free Zone. Sheikh Ahmed commented: 'Emirates is pleased to be part of this jointly-operated centre which has been at the forefront of the development of aviation training in the Gulf. 'This facility heralds a new era in aviation in the Middle East as the first flight training centre with dually approved type-rating. Our colleagues in the aviation industry, both within the region and further afield in Europe, Asia and Africa now have convenient access to the world's highest-possible training certifications.' 'When CAE signed this agreement with Emirates, it signified a strategic move for CAE to expand its training network worldwide,' said Derek H. Burney. 'Today's ceremony speaks volumes about the success of this venture. Most important is that we are providing greater value to the region's aircraft operators by offering the highest-quality, fully certified, training closer to their home base.' The centre, which currently houses five full-flight simulators, can train up to 4,000 pilots annually. Its current commercial and business-jet airline customers include Arabasco, Emirates, Jet Aviation, Kuwait Airways, Middle East Airlines, Oman Air, Qatar Airways and Royal Jet. The second Boeing 737NG/BBJ simulator will be installed in spring 2004. When the new simulator is in operation, Emirates-CAE Flight Training will offer training on two Boeing 737NGs/BBJs, a convertible Hawker 800/800XP, a Gulfstream IV, a Gulfstream V, an Airbus A330/A340 and an Airbus A319/A320/A321/ACJ. The Gulfstream devices and the second Boeing 737NG/BBJ will have a CAE Sim XXI™ platform, which is CAE's latest simulator technology designed to simplify assembly, test and integration, and to reduce life-cycle costs. According to Dave Barette, the centre's Managing Director and an 18-year CAE employee: 'The centre will showcase CAE's latest technologies, including the integrated procedures trainer from the CAE Simfinity™ line of products and services, as well as multimedia classrooms and briefing-debriefing rooms.' He added that the centre is conveniently located and offers all the service amenities that will help pilots focus on training, leaving all other details to the centre's dedicated client services staff. The Emirates Group comprises Emirates Airline, Dnata (the largest travel services provider in the Middle East), and a number of commercial relationships, including the Emirates-CAE Flight Training Centre. Emirates, the world's fastest-growing intercontinental full service airline, flies to 71 destinations in 50 countries, and operates a fleet of Boeing and Airbus aircraft, with an average age of just three years. CAE offers aviation training to commercial, regional and business-jet operators in its global network of training centres, which operates more than 90 full-flight simulators, with 20 locations on four continents. CAE is a leading provider of integrated training solutions and advanced simulation and controls technologies to civil aviation, military and marine customers. The company generates annual revenues in excess of C$1 billion and employs about 6,000 people in Canada, the United States and around the globe. CAE is at booth No. E846 and Emirates at booth No. W520 at Dubai 2003, the 8th International Aerospace Exhibition, from 7th to 11th December. Source: AME Info Middle East Wednesday, December 03, 2003
Pentagon Freezes Boeing Contract - News Editor @ 21:31 PST The Pentagon said the deal would be frozen pending an inquiry into alleged wrongdoing by one of its former officials. Darleen Druyun is said to have discussed a possible job with Boeing prior to leaving government service. Ms Druyun had played a key role in the Pentagon's decision to award the tanker contract to Boeing. Last week Boeing fired its finance chief, Michael Sears, for allegedly violating company recruitment policy and seeking to hire the former procurement official. Deputy Defence Secretary Paul Wolfowitz said this move prompted him to order the freeze. Ms Druyun went to work for Boeing in January this year, and was dismissed last month. In a letter to Senate officials, Mr Wolfowitz said he had asked for a "pause" in the process of putting through the deal. "I am asking the Department of Defense inspector general to provide to me an independent assessment of those allegations and any negative impact that improper conduct by Mr Sears and Ms Druyun may have had on the negotiation of the contracts that the Air Force proposes to execute," he said. He added the Pentagon would "consider" whether to proceed with the first phase of the contract once the investigation was complete. But Senate Armed Services Committee Chairman John Warner, while welcoming the decision, warned the Pentagon to allow legislators to review the results of the investigation before approving any lease or purchase. "Your recent actions clearly indicate that there are many outstanding questions that must be answered before proceeding with this programme," he said in a letter to Mr Wolfowitz. BBC Pentagon correspondent Nick Childs says the tanker deal itself has been hugely controversial - originally the Pentagon wanted to lease all 100 planes, but opponents in Congress objected and the compromise has been to lease 20 and buy the remainder. But the Air Force says it desperately needs new tankers if the US military is to fulfil its global commitments. The deal has also been scrutinised by the Pentagon following earlier allegations that Ms Druyun had given Boeing access to information concerning a rival bid from Airbus. The new inquiry marks a setback for Boeing, which had hoped to draw a line under the affair by reshuffling its senior management. On Monday, it followed up Mr Sears' dismissal by announcing the surprise resignation of its chief executive and chairman Phil Condit. Earlier this year, the company was stripped of a $1bn air force contract after it emerged that it may have won them by illegally acquiring information from arch-rival Lockheed Martin. The firm has become more dependent on military contracts amid a sharp downturn in demand for passenger jets from recession-weary airlines. Source: BBC News
Boeing Faces Scrutiny After Condit Quits - News Editor @ 11:53 PST CHICAGO (AP) -- Boeing Co. is under new leadership following the sudden resignation of Phil Condit, but the company still faces the same tough questions about the methods it used to secure a lucrative tanker contract from the Pentagon. New CEO Harry Stonecipher, who was rushed back from retirement in Florida to restore order to the embattled aerospace manufacturer, said Monday that answering those questions -- and fixing Boeing's dented reputation -- will be his chief objective. "Getting the tanker program going and reassuring the government that we are not only compliant but an exemplary supplier is one of the first, foremost and immediate tasks that I have," said Stonecipher, who had retired last year. "This hiccup we've had will cause us to have to do a lot of reassuring with the government." The 67-year-old former president of the company was asked to return by Boeing's board, where he has served as a director since joining Boeing from McDonnell Douglas when the two companies merged in 1997. Also, former Hewlett-Packard Co. CEO Lewis Platt, who serves on Boeing's board, was named as non-executive chairman as the company split Condit's former duties in two. The legislation authorizing Boeing's tanker contract with the Pentagon was signed by President Bush last week after it won approval in Congress, but it could be delayed from being carried out if Congress calls for additional hearings. Two critics of the deal -- Republican Sens. John McCain of Arizona and Peter Fitzgerald of Illinois -- already called last Friday for Defense Secretary Donald Rumsfeld to postpone the deal in light of the recent firings of two Boeing executives. Those dismissals were made Nov. 24 after Boeing said it learned in an internal inquiry that chief financial officer Mike Sears had negotiated to hire Air Force procurement official Darleen Druyun at a time when she was in a position to influence military contracts involving the company. The Pentagon's Office of the Inspector General is looking into allegations that Druyun acted improperly in giving Boeing financial information about a competing bid by Airbus. Platt stressed that "nothing whatsoever" had been found implicating Condit in the ethical issues that resulted in the firings. But the tanker dispute isn't the only controversy to have marred Condit's tenure. Most recently, the Pentagon punished Boeing for stealing trade secrets from rival Lockheed Martin to help win rocket contracts. Boeing has been indefinitely banned from bidding on military satellite-launching contracts, which has already cost it seven launches worth about $1 billion. Seven months before that, the General Accounting Office found that Boeing had obtained and misused proprietary information from rival Raytheon as they competed for a missile-defense contract. Condit, 62, said he ended his 38-year career with the company to try to prevent it from getting "bogged down" after a year of upheaval. "In the end, I concluded that the controversies and distractions of the past year were obscuring the great accomplishments and performance of this company," he said on a conference call. While the defense business has prospered, however, Condit also has been criticized in some quarters for ceding the market-share lead in commercial airplane manufacturing to Europe's Airbus while failing to see a single new airplane program launched at Boeing during seven-plus years at the helm. The focus on defense helped cushion the blow from the aviation slump that followed the Sept. 11, 2001, attacks but leaves Boeing facing an uncertain future in commercial jets, even if it goes ahead with the mid-range 7E7 jet that the board is close to signing off on. #2Once the commercial airplane market recovers and some of these controversies around the space and defense business subside, I think the epitaph for Phil Condit will be one that is positive," said analyst Peter Jacobs, who follows the company for Ragen MacKenzie. "The only chink in Phil's armor is that there are a slew of controversies about ethical behavior that happened on his watch, and there's really no excuse for that" Jacobs said. Even Boeing backers in Washington are hesitant to say the company's troubles in the tanker controversy are over. "I hope this is the end of it," said Rep. Norm Dicks, D-Wash., a senior member of the House Appropriations Defense Subcommittee and leading proponent of the tanker deal. "But I don't know. There are still other investigations by the IG (inspector general) and internally by Boeing that are under way. We'll have to wait and see how that turns out." Wall Street observers said the naming of Stonecipher, known as a no-nonsense executive who keeps close tabs on costs, should help Boeing improve its battered image in Washington, where suspicions that cronyism and insider deals are rife in the defense-contracting business have only increased in recent months. As part of the reshuffling of duties, Stonecipher plans to reduce his executive council -- those who will directly report to him -- to 12, down from the 29 who reported to Condit. Source: NY Times Chief Executive at Boeing Quits Under Criticism - News Editor @ 11:42 PST The Boeing Company, its reputation tarnished by charges of ethical misconduct and its share of the aircraft market falling, said yesterday that its chief executive, Philip M. Condit, had resigned. The company, the world's largest aerospace company, called Harry C. Stonecipher, who led the McDonnell Douglas Corporation into a merger with Boeing six years ago, out of retirement to become its new chief executive. Mr. Stonecipher, 67, said his No. 1 priority would be to "restore credibility" with the Defense Department and Boeing's civilian customers. Mr. Condit's resignation reflects the struggles of a company, long admired as one of the greatest American industrial successes, as it tries to expand its military business to compensate for losses to a European rival, Airbus, in commercial aircraft. It brings an abrupt end to a 38-year career at Boeing that was crowned by an ascension to chief executive in 1996. "Our challenge is to straighten out the reputation of the company," Mr. Stonecipher, a former president of Boeing who retired 18 months ago, said in a conference call with Wall Street analysts. Unlike Mr. Condit, he will not be the company's chairman. That position was assumed by Lewis E. Platt, the retired chairman and chief executive of the Hewlett-Packard Company, who joined the Boeing board four years ago. When Mr. Condit, now 62, took over, Boeing was clearly outpacing Airbus. But Airbus has eaten away at Boeing's lead and is poised to pass it, and the decline in commercial aviation after the Sept. 11 attacks has only worsened the situation. In the last few years, Boeing has laid off 30,000 workers and shut several production lines. As recently as 2001, Boeing produced more than 500 airplanes for commercial customers. But that number is expected to fall to fewer than 300 this year. Many of Boeing's loyal customers have made purchases from Airbus as the European company continues to push forward with new types of planes — like a 555-seat jumbo jet — after Boeing decided to step back from the jumbo jet business as well as other long-range jetliners. Where commercial aircraft once accounted for the bulk of the company's business, now, for the first time in the company's history, military contracts are expected to account for more than half of Boeing's business by next year. At the top of the list is the $20 billion contract for Boeing to supply aerial refueling tankers to the Air Force. For months, that contract has come under attack as financially beneficial to Boeing at the expense of taxpayers. Yet as information emerged that Boeing's ousted chief financial officer, Michael M. Sears, had been talking to Darleen Druyun, the former Pentagon official, about taking a job at Boeing at the same time that Ms. Druyun was representing the Pentagon in financial negotiations with Boeing over the tanker, the deal ran into even more trouble. After the firings of Mr. Sears and Ms. Druyun, the secretary of defense, Donald H. Rumsfeld, asked the Pentagon to take a second look at the deal, and prominent senators, among them John McCain of Arizona, have stepped up their criticism. But even bigger military programs are on the line, among them a potential $90 billion contract for the Future Combat Systems program, a sweeping effort to redesign Army weapons. In addition, Boeing produces aircraft for the Pentagon like the F/A-18 Hornet fighter jet, the F-15 Eagle fighter-bomber, the C-17 Globemaster transport plane and the AH-64D Apache helicopter. Boeing also has several other space projects, including making communications satellites and Delta rockets. With Lockheed Martin, it works on the space shuttle. Last July, Boeing was denied more than $1 billion in Pentagon orders and was suspended from some missile-defense contracts after it was found to have been in possession of proprietary documents from its rival, Lockheed Martin. In yesterday's conference call, Mr. Condit said the decision to leave had been his and it followed about a week and a half of lengthy discussions with the Boeing board. "The decision to submit my resignation came after a great deal of soul-searching," Mr. Condit said. "But I ultimately concluded that it was the best decision for the good of the company." Mr. Stonecipher indicated that he would not be an interim chief executive and that Boeing's mandatory retirement rules had been waived to bring him back. "I will be here as long as the board puts up with me or until my health deteriorates," he said. "Hopefully, none of those items will happen at any time soon." Washington military analysts said Mr. Condit's departure would send a strong signal to a Pentagon that takes ethical lapses seriously. But Wall Street analysts said that many of the company's core issues — mainly, the steady loss in business to Airbus — remain. In addition, one important strategic decision for the company, whether to start building a 250-passenger airplane now called the 7E7 Dreamliner, is coming before the board within two weeks and will be a first test of Mr. Stonecipher's commitment to the company's commercial side of the business. "Boeing is more than in the penalty box with the Pentagon," said Charles Gabriel, an analyst with Prudential Securities. "They have got to send a signal that the problem was deep and that they needed to cut the cancer." Loren Thompson, a military analyst at the Lexington Institute, a northern Virginia research group, said Mr. Condit's departure "is not about Boeing's business, but is about Boeing's reputation." "There were almost certain to have been back-channel discussions between the secretary of defense and Air Force that indicated they were not comfortable doing business with Phil Condit in the future," Mr. Thompson said. At the same time, Mr. Thompson said, the foray into military business that Mr. Condit oversaw could well pay off handsomely for the company. Boeing' stock closed yesterday at $38.02, down 37 cents. During Mr. Condit's tenure as chief executive, Boeing's stock dropped over 6 percent. In some ways, Mr. Condit's resignation is another step in the process of integrating McDonnell Douglas and Boeing and represents the culmination of a power struggle between the McDonnell and Boeing sides of the business. As chief executive of McDonnell Douglas, Mr. Stonecipher pulled the company out of the commercial aviation business and directed it more toward military orders, including many of the programs, like the F/A-18 Super Hornet and the C-17 transport, that have become Boeing's bread-and-butter products. In the conference call Mr. Stonecipher said he expected that Boeing's recent problems with the tanker would be no more than a "hiccup," that the Future Combat Systems program would go as planned and that the company's suspension from certain missile-defense programs would soon be lifted. "I don't think either program will be scrapped," Mr. Stonecipher said of the tanker plan and the Future Combat Systems program. "This little hiccup we have — well, it's not little, it's a hiccup — will cause us to have to do a lot of reassuring to the government. We have to look them in the eye and address each and every one of their concerns." Lawrence J. Korb, a former Pentagon official and now senior fellow at the Center for American Progress, a Washington research group, said that in awarding contracts the Pentagon looks at probity along with price. "There's a subjective evaluation that comes into Pentagon decision making," Mr. Korb said. "Once they have doubts about a company, it's hard to get a contract." On the commercial front, though Mr. Stonecipher was said to be a lukewarm supporter of the 7E7 Dreamliner project, he said yesterday that he was "looking forward to going ahead with that program." The Pentagon has not yet signed the deal with Boeing for the lease of 20 and the purchase of up to 80 767's as aerial refueling tankers, pending the review ordered last Friday by Mr. Rumsfeld. Even though the tanker deal was authorized under an appropriations bill signed by President Bush on Nov. 24, Senator John Warner of Virginia, the Republican chairman of the Senate Armed Services Committee, has said his panel will hold a hearing on the deal next year. Philip E. Coyle III, an assistant secretary of defense in the Clinton administration, said Mr. Condit's resignation "will help a lot." Both the tanker episode and the accusations of theft from Lockheed were clearly hurting their business, said Mr. Coyle, now a senior adviser at the Center for Defense Information, a Washington research group. Source: NY Times |
|||||||
|
Copyright © 2005 SimUser (formerly SimLink). |