Aerospace & Defense News - Defense

AirGuide Business, July 14, 2008

7/14/2008

Airbus, EADS

Despite the Pentagon decision last week to re-do the big Air Force refueling tanker competition awarded in February to Airbus parent EADS and its partner Northrop Grumman, top EADS executives remain determined to break into the U.S. defense market. They talked about making a billion-dollar U.S. acquisition next year. And they are eyeing more than tankers. Saturday, the EADS leadership shrugged off the tanker re-bid, expressing confidence that the original award would be sustained. And executives spoke optimistically of winning another big U.S. military airplane contract: aiming to eventually replace more than 450 U.S. Army mid-size transport planes. Boeing doesn't even have a candidate plane for that role. Reported by The Seattle Times. 7/14/2008

Boeing

Boeing said Monday it doesn't believe the U.S. government requires a larger aircraft for its tanker program, and said its 767 offer is even more attractive today than a year ago when it first submitted a bid for the $35 billion contract, because of the rising cost of oil. Jim Albaugh, head of Boeing's Integrated Defense Systems, said a smaller aircraft might be a better choice given the higher oil costs. 7/14/2008

Boeing

Boeing said yesterday that its second-quarter financial results will include a charge of approximately $0.22 per share, or $250 million, owing to delays in its Airborne Early Warning & Control program. The manufacturer continues to expect earnings per share of $5.70-$5.85 for full-year 2008 "as companywide performance and productivity are expected to offset the AEW&C charge by year end." Its EPS guidance for 2009 remains unchanged at $6.80-$7.00. 7/10/2008

Cubic Simulation Systems

Orlando-based defense contractor Cubic Simulation Systems has rolled out its latest product -- a tactical robot that can disarm bombs, conduct video surveillance and perform other functions for military and law enforcement agencies, the company said Tuesday. The local subsidiary of San Diego-based Cubic Corp. developed the "unmanned ground system" as one of its first major product lines not related to military training simulator technology, officials said. Cubic pitched the new system with a trendy tie-in to the trash-gathering WALL-E, the "star" of the current animated hit movie. "It's not as clever or cute as WALL-E, but a new robot being introduced (by Cubic) does do disposal duty -- bomb disposal," the company said. Though robots are nothing new to police and military personnel, Cubic says its system advances the technology to a new level of effectiveness. Known as COUGAR, for Combined Operations Unmanned Ground Assessment Robot, the Cubic system packs a bundle of advanced audio, video and anti-explosive electronics into a compact ruggedized frame, officials said. 7/16/2008

Heroux-Devtek, Bell Helicopter Textron

Heroux-Devtek has announced a letter of agreement with Bell Helicopter Textron to make major structural components for the new Bell 429 helicopter. The agreement, running until 2015, has an estimated value of $57 million. The Montreal-based maker of aerospace and industrial products will provide cabin, cockpit and aft fuselage components and subassemblies. Heroux-Devtek said its aerostructure plant in Dorval, Que., has already provided pre-production parts for the eight-seat light twin helicopter. 7/16/2008

Lockheed Martin

Lockheed Martin chairman Robert J. Stevens urged European regulators to continue to promote transparency and competition, warning that the idea that protectionism would strengthen markets is misguided. Speaking on the eve of the aerospace industry's biggest air show, Stevens also said Sunday that the spending gap between the United States and European defense budgets threatens to create an unbridgeable trans-Atlantic capabilities gap. Stevens said that Lockheed, the world's largest defense supplier, welcomed the European Commission's draft directive on defense procurement, which would open up the EU's EUR80 billion-a-year (US$117.93 billion) defense market to more cross-border competition. The bills must be approved by EU governments and the European Parliament. Some governments have been hostile to the idea of the EU weakening national controls, but Commission officials said previous consultations with national capitals left them confident the directives could be adopted quickly. Reported by AP. 7/14/2008

Lockheed Martin

The Lockheed F-22 Raptor, capable of aerobatic feats unimaginable for earlier-generation jets, is expected to be the star attraction Monday when it flies at the prestigious Farnborough International Airshow in England. But Lockheed Martin Corp. is set to end production of the fighter when it delivers its final F-22 to the Air Force in 2011. It is a Catch-22 of military contracting: The fighter is so advanced that, under law, not even U.S. allies are allowed to buy it. 7/14/2008

Northrop Grumman

Northrop Grumman Corp. said all four initial tanker System Design and Development (SDD) airframes are scheduled for final assembly and initial flight testing by the end of 2009, in a statement issued on Monday. The first two SDD airframes have been built and flown, and are awaiting modification to the tanker configuration, it added. 7/14/2008