It is rare for business leaders to publicly state that profits are the most sensible priority.
That’s precisely what Ted Colbert, CEO of Boeing Defense, Space, is doing.
When he assumed leadership of BDS 2022, the top military supplier suffered production quality issues, persistent hard work, supply chain disruptions, and billions of dollars in losses due to competitive bidding.
Since then, Colbert has set two priorities: stabilizing Boeing’s critical production inputs and offering defense products.
“I’m not pro-revenue,” Colbert said in a July 9 interview at Boeing headquarters in Arlington, Virginia, across from the Pentagon. Instead, the former head of Boeing Global Services wants to return the aircraft maker to its roots as a global leader in aerospace design and production.
“It’s an engineering company,” says Colbert. La defense, at its core, is based on quality engineering. “
Colbert faces short- and long-term obstacles to achieving this goal.
BDS staff are “less experienced than ever,” he says, due to the high turnover rates and retirements brought on by the Covid-19 pandemic. This same factor affects Boeing’s suppliers, affecting the availability and quality of critical parts.
Colbert believes that, despite everything, the tide has turned those problems. Increased spending on education of plant and engineering workers, as well as the integration of Boeing specialists into primary suppliers, have boosted key metrics, adding others such as initial component quality. , on-time delivery, travel, rework and worker safety.
The defense giant also temporarily abandoned the fixed-price contract strategy that generated billions of dollars in losses on systems such as the new presidential aircraft based on the Air Force One 747 and the T-7A training aircraft for the US Air Force. USA.
Last year, Boeing even forfeited new defense opportunities, a prime contract to upgrade the aging fleet of aircraft capable of commanding the United States’ nuclear arsenal.
Known as the Airborne Survival Operations Center (SAOC), this program aims to supply a successor to the Pentagon’s current Boeing E-4B Nightwatch aircraft. BDS pulled out of the SAOC festival in December, laying out a new strategy of increased scrutiny of new progression contracts.
“It was very intentional,” Colbert said 8 months later. We would not accept the terms of the agreement that. . . they would potentially put us in a scenario similar to what we find ourselves in today with some of our other programs. »
In discussing the decision, the BDS leader repeats a mantra that guides his strategy: “Stability is what we want. “
However, there remains one area where Boeing continues to settle for calculated risks.
In contrast to its conservative approach, Boeing has bet $1. 8 billion on the future of its fighter jet business.
That bet comes in the form of a new classifieds production facility near BDS headquarters in St. Louis, Missouri. Construction is underway lately at what Boeing calls the Brownleigh site, adjacent to the company’s existing fighter assembly and delivery campus at St. Louis Lambert International Airport.
Boeing revealed the allocation in June, saying the new factory is intended to “support long-term fighter jet programs,” without naming consumers or express allocations. A sign outside the structure area displays a black sixth-generation aircraft and proclaims Boeing’s commitment to manufacturing fighter jets.
The company has committed to building a 102,000 m² (1. 1 million ft) factory before winning a contract to produce next-generation fighters.
“Our military consumers have suggested to the commercial base that they invest now to ensure that the United States and its allies can keep up with the increasingly competitive and advancing threats against the United States,” said Steve Nordlund, vice president of air domain at Boeing. “We have listened and made the largest investment in the history of Boeing’s defense business. “
BDS in St. Louis already hosts F/A-18E/F Super Hornet meeting facilities for the U. S. Navy. (USN), the F-15EX Eagle II fighter and the T-7A Red Hawk teacher of the U. S. Air Force. (USAF). ). ).
Work is also nearing completion near Mascoutah, Illinois, on a production facility for the assembly of the MQ-25 Stingray autonomous tanker for the USN.
Boeing’s investment in the new St. Louis factoryLouis possibly seems risky, given the existing fiscal climate in the United States, where the number of next-generation fighter jets appears to be declining. The USN is cutting investment for the development of a sixth-generation fighter called the F/A-XX and more sensible USAF officials have recently given the impression of being uncommitted to the service’s Next Generation Air Dominance (NGAD) program. The goal of this secret mission is believed to be to find a successor to Lockheed Martin’s F-22 Raptor air superiority fighter.
“It’s going to be tricky to manage resources over the next couple of years,” USAF Chief of Staff Gen. David Allvin said of NGAD on June 13 at an Air and Space Forces Association event.
When asked if the service could or would continue to participate in NGAD, as it also develops cheap autonomous collaborative combat aircraft (CCA), Allvin was not categorical. “We’re going to have to make those decisions, make those decisions and . . . it will probably play out over the next two years,” he said.
While little is made of the NGAD program, the USAF Air Combat Command’s top officer has recently further muddied the waters.
“There is no official replacement for the F-22 at this time,” Gen. Kenneth Wilsbach said July 10 at the Mitchell Institute in Washington, DC. “Everyone needs to talk about NGAD like a jet. . . It’s not a jet, it’s a circle of system relatives. “
While nothing has been confirmed, this family is expected to come largely with a manned aircraft that will be paired with several CCA drones capable of performing a variety of combat roles.
Although Boeing has not officially declared its participation in the NGAD effort, it is a broad finalist for the contract, along with rival Lockheed. Northrop Grumman retired last year.
Although the USAF did not submit a formal request for proposal (RFP) until 2023, there are rumors that prototype aircraft are already flying. The RFP says the Air Force is seeking a first manufacturer for the new fighter through the end of 2024, and Wilsbach confirms the service is currently in the process of deciding on the supplier.
Although Boeing has remained silent on the USAF program, its preemptive investment in a classified fighter factory appears to be part of its strategy to secure a victory in the NGAD, seen as important to cementing the fortunes of BDS.
“We have to place bets,” Nordlund says.
He notes that Super Hornet deliveries are expected to end in 2027 and that the USAF has reduced its planned acquisition of the F-15EX to less than a hundred aircraft. It will also be several years before some of the company’s promising new progression systems succeed at the most lucrative level of full-capacity production.
“With the T-7A and MQ-25 we participate in fixed-price progression systems,” says Nordlund. “So that’s not where we make our money. “
Boeing will also soon deliver its latest F/A-18E/F to the USN, ending the acquisition of the carrier-based strike fighter.
Failure to win a new contract for a fighter jet would inject an uncomfortable dose of long-term uncertainty into Boeing’s highly specialized workforce. The $1. 8 billion investment in the factory is intended to demonstrate its commitment to producing next-generation aircraft for the United States.
“To be with our customers, we have to demonstrate our ability to fulfill their mission,” Colbert says.
The new one is being built in accordance with the US government’s unspecified classification and protection requirements, meaning it can only be used by domestic customers.
Obviously, Boeing hopes that this expensive investment will cause the Pentagon to grant it what could be a once-in-a-generation opportunity.
Rival Lockheed had ruled the production of fifth-generation fighters, winning the air superiority and strike fighter competitions, with the F-22 and F-35 Lightning II, respectively. Meanwhile, Northrop awarded the contract to recapitalize the USAF’s stealth bombers. with its B-21 Raider flying wing.
With F-35s expected to remain in production and operations for decades, Boeing has a limited chance of securing a next-generation fighter contract. Failure to do so could jeopardize the already limited commercial base that underpins the production of U. S. fighter jets.
The precarious nature of that base was evident during a 25 June tour of Boeing’s F-15EX assembly line. During that visit, vice-president of manufacturing James Dewees, who began his career with Boeing as an aviation mechanic, told FlightGlobal that just over 600 workers manage aircraft production for that entire fighter platform.
Such a small and skilled workforce is highly vulnerable to production disruptions, as was the case in aerospace, when the Covid-19 pandemic caused many employees to retire or take jobs in other sectors.
Many aircraft brands and their suppliers still report chain problems and hard work as a result of those turbulent years.
Boeing expects structural painting at the Brownleigh safe site to be completed by 2026, though Nordlund says the company has the flexibility to adjust the schedule.
At the same time, Boeing’s recent delivery of the first operational F-15EX Eagle II marked a major milestone, as it was the first time in more than two decades that it delivered a new fighter jet to the USAF. The last F-15E Strike Eagle ordered in 2001.
Since then, Boeing has developed several major innovations for the F-15, equipping the aircraft with fly-by-wire (FBW) virtual flight controls, more weapons stations, and a modernized touchscreen cockpit.
The first combat-configured Eagle II rolled out of assembly and final inspection in St. Louis on June 5. Bearing tail number 008, the twin-engine fighter arrived in Portland, Oregon, where it will serve with the Air National Guard (ANG). .
The USAF announces that it will deploy F-15EX to squadrons in Japan, where older F-15Cs have been retired.
Boeing test pilot Michael Quintini says the Eagle II was designed to make the transition process as quick and easy as possible for pilots. “One of the things we temporarily went back on was not deviating too much from the original software we had on the E model,” says the former USAF pilot.
Boeing has calibrated the F-15EX’s controls to resemble existing variants that have recently been flown by U. S. pilots.
“It’s designed to be as close as possible,” Quintini adds. “The amount of stick throwing needed to perform a similar maneuver is about the same. “
Thanks to this, in addition to the ability to keep flight software and cockpit displays on older models, pilots can move “very temporarily from old to advanced,” he says. Pilots who are already qualified on the F-15 Model C or E can upgrade it. to EX with only two certification flights after completing educational education and simulator testing.
The Eagle II’s FBW controls were installed on the F-15SA, a Strike Eagle variant produced for Saudi Arabia and the first F-15 to lack the original hydraulic-mechanical actuator system. Boeing has refined the FBW controls of the Qatari F-15QA.
The F-15EX’s FBW formula provides “improvements in low-speed maneuverability” and aerodynamic performance, Quintini says.
Maintaining low-speed flight stability provides the aircraft with a tighter turning radius, a survival advantage in dogfights. Smaller, lighter fighters such as the Lockheed F-16, Dassault Rafale and Eurofighter Typhoon can achieve a turning radius at higher speeds.
The FBW generation has also allowed Boeing to equip the F-15EX with two new weapons stations, numbers one and nine, located on the outer wings. Suspending air-to-air missiles on the wings produces high-gravity maneuvers with drag and lift forces. Older flight controls may simply not compensate for the increased stress, preventing early F-15s from using more ammunition.
However, the virtual flight controls are calibrated to save you damaging loads and correct the aerodynamic instability created by four additional missiles. This allowed Boeing and the USAF to certify the F-15EX with an unrivaled capacity of 12 air-to-air missiles.
By contrast, the stealthy F-35A can accommodate four missiles in its internal compartments, plus additional ammunition from underwing stations, thanks to a higher radar signature.
Lockheed claims the F-35A has a maximum payload of 8,160 kg (18,000 lb), up from the 13,300 kg announced through Boeing for the F-15EX. This weapons merit has led Boeing to describe the non-stealth Eagle II as an ideal complement. to the unobservable F-35.
The Eagle II also has the merit of having excess capacity in force generation and onboard cooling. Boeing designed the plane with room for growth, only about 50% of its existing capacity.
Conversely, innovations in the F-35’s functions left that fighter operating outdoors with design tolerances for force and cooling, forcing the USAF to adopt an expensive engine upgrade program with F135 propulsion supplier Pratt.
Despite its sales pitches, Boeing has yet to locate a first export visitor for the F-15EX. It says it is discussing conceivable sales with Indonesia, Israel, Poland and Saudi Arabia, and that former F-15 operators are also in the crosshairs, adding Japan, Singapore and South Korea.
In late June, the combat-configured F-15EX (tail number 007) was about to be delivered to the ANG in Portland. Together with the main model, it will constitute the conclusion of deliveries of batch 1, with shipments of batch 2 expected to begin in late 2024.
With Super Hornet production halted, Boeing executives expect foreign interest to boost sales of the Eagle II, even as they await the final results of their $1. 8 billion bet on long-term hunter production in St. Louis.
The F/A-18E/F Super Hornet, which was long a mainstay of its fighter business, is nearing the end of its service life and new deliveries to the U. S. Navy are expected to be completed. USN.
Boeing is assembling 17 new-build Block III Super Hornets for the USN under a $1. 3 billion contract entered into in March that will enable production of the F/A-18 through the 2027Array.
Moreover, the company is working to modernize existing Block II Super Hornets as part of a Service Life Modification (SLM) program, and the first two modernized aircraft were delivered to the Navy in late June. Boeing began painting the SLM in July 2023, saying the modifications gave the planes an additional 4,000 flight hours.
This marks the definitive bankruptcy of the new Super Hornet production.
Even as increased interest emerges in the combat-proven carrier-based fighter, Nordlund told FlightGlobal that the F/A-18 program has effectively reached a “point of no return,” raising the difficulty of purchasing the items at long term for production. .
“You have to maintain a committed foundation,” Nordlund says, noting that many small “family-owned” F/A-18 businesses have limited skills to adjust their capacity.
Although there are many headwinds and uncertainty, Boeing executives remain positive about the company’s prospects. Colbert’s stability is paying off, and the first quarter currency effects appear to be a benefit for BDS after two years of annual losses.
However, the defense leader warns that this trend likely did not continue in Boeing’s second quarter, which the company plans to report on July 31. Quality and production issues in the advertising aircraft department have impacted several defense programs, including the KC-46 Pegasus tanker. and the P-8 Poseidon maritime patrol aircraft, both derived from Boeing advertising aircraft.
Boeing also continues to absorb losses from replacing the two VC-25B Air Force One, which outgoing leader Dave Calhoun said would possibly never be profitable. Colbert describes this very complex, very low-volume program as more akin to shipbuilding than to the assembly of classic aircraft. .
Despite those challenges, the BDS leader reports that demand for all Boeing products continues, adding helicopters and ammunition. He also remains positive about budget uncertainty in Washington, noting that would-be enemies of the United States are spending a lot of cash to modernize their military. forces, joining new fifth-generation fighters such as Russia’s Sukhoi Su-57 and China’s Chengdu J-20.
“We know our adversaries have invested in some of those areas,” Colbert says. “That’s why I find it hard to believe that our consumer doesn’t need to invest in some of those areas. “
Financially, Colbert’s goal is to return Boeing to consistent single-digit margins, which he describes as “the ultimate” in the defense aerospace industry.
To achieve such returns, Boeing may simply involve more outsourcing. With its upcoming acquisition of aerostructures supplier Spirit AeroSystems, Boeing is positioned as a major supplier of key defense programs, adding Northrop’s B-21 stealth bomber and Bell’s next-generation V-280. Tiltrotator for the U. S. Army.
“Being first in everything may not be the right answer,” Colbert says.
However, Boeing is still considered one of the leading aircraft manufacturers, traditionally known for the quality of its design and production.
“We are one of the largest engineering companies in the world,” says Colbert.
It remains to be seen what he will succeed in restoring the company’s broken reputation.
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