Tag Archives: Airliner

Boeing Announces Key Organization, Leadership Changes

CHICAGO, April 21, 2020 announced key organization and leadership changes aimed at driving greater cross-company integration and continuous improvement; aligning enterprise services to current business conditions while increasing value; streamlining senior leadership roles and responsibilities; and preparing now for the post-pandemic industry footprint. The changes are effective May 1.

A newly formed group — Enterprise Operations, Finance & Strategy — will consolidate several important areas, bringing together teams responsible for manufacturing, supply chain and operations, finance, enterprise performance, strategy, enterprise services and administration. Led by Greg Smith, executive vice president, Enterprise Operations, and chief financial officer, this new global organization will embed operational excellence and consistent lean principles across Boeing and its supply chain, and restore production and supply chain health as Boeing and the broader aerospace industry recover from the COVID-19 pandemic.

Corporate Audit will join Smith’s new group and continue to report directly to the Boeing Board of Directors Audit Committee as it does today, providing independent, objective assurance and advisory services to improve company operations.

Jenette Ramos, senior vice president of Manufacturing, Supply Chain & Operations, will bring 34 years of Boeing experience, leadership and operational skills to a special assignment in support of Smith and Boeing President and CEO David Calhoun.

The company also is combining its legal and core compliance programs, including global trade controls, ethics and business conduct, into a single organization led by Brett Gerry, chief legal officer and executive vice president of Global Compliance. This approach will enhance Boeing’s already strong compliance and internal governance program through focused accountability for, and a more integrated approach to, Boeing compliance responsibilities. It also will help the company proactively address new legal and compliance obligations arising from an increasingly complex global regulatory environment. 

To accelerate this important work and to build on the existing strength of its compliance and ethics program, Boeing soon will name a chief compliance officer who will be responsible for leading the company’s compliance, ethics and trade control activities. This person will report to Gerry, with a direct reporting line to Calhoun and the board’s Audit Committee on compliance and ethics issues.

Finally, Boeing Government Operations, led by Executive Vice President Tim Keating, will assume responsibility for the company’s Global Spectrum Management activities, which ensure the safe, efficient and compliant use of radio frequency spectrum in Boeing products and operations.

“I am confident these changes will drive greater alignment among our functions; better equip our commercial, defense and space, and services businesses to deliver on customer commitments in a changing marketplace; and support our continuous efforts to develop talent through challenging leadership assignments,” said Calhoun. “Special thanks to Greg, Brett, Tim and Jenette for taking on new leadership responsibilities.”

Coinciding with these organization changes, Diana Sands, senior vice president of the Office of Internal Governance and Administration, has decided to retire from Boeing later this year after nearly 20 years with the company and following a thorough transition of responsibilities.

“Over the past two decades, Diana has played a key role in developing an industry-leading ethics and compliance program, served in several critical finance roles and been a strong advocate for advancing diversity and inclusion across the company,” said Calhoun. “The Boeing Board of Directors and I are deeply grateful for Diana’s leadership, integrity and dedicated service.”

Boeing is the world’s largest aerospace company and leading provider of commercial airplanes, defense, space and security systems, and global services. As a top U.S. exporter, the company supports commercial and government customers in more than 150 countries. Boeing employs more than 160,000 people worldwide and leverages the talents of a global supplier base. Building on a legacy of aerospace leadership, Boeing continues to lead in technology and innovation, deliver for its customers and invest in its people and future growth.

Airbus secures new face mask supplies to support Europe’s fight against COVID-19

Getafe, 28 March 2020 – Airbus has deployed a new air-bridge flight between Europe and China to deliver additional face mask supplies to France, Germany, Spain and United Kingdom health systems in support of the COVID-19 crisis efforts.

The aircraft, an Airbus A330-200 undergoing conversion as Multi-Role Tanker Transport (MRTT), took off on 26 March at 19.15 local time (CET) from Airbus’ Getafe site near Madrid (Spain) reaching the Airbus site in Tianjin (China) on 27 March. The aircraft, operated by an Airbus crew, returned to Spain on 28 March at 04.05 local time (CET) with a cargo of more than 4 million face masks.

In recent days, Airbus had already organised flights from Europe and China with A330-800 and A400M aircraft to donate thousands of face masks to hospitals and public services around Europe.

The picture shows the A330MRTT departing Airbus’ Getafe site on 26 March

Airbus A330MRT

Rolls-Royce Holdings Plc 2019 Full Year Results

Warren East, Chief Executive commented: “After a challenging first half, we had a good end to 2019, delivering 25% growth in full year underlying operating profit and an encouraging level of free cash flow. Our restructuring efforts gained momentum, with run-rate cost savings of £269m. Civil Aerospace improved its underlying profit significantly, with record engine deliveries, good aftermarket performance and improved OE unit losses. We made further progress on the Trent 1000; cash costs are in line with guidance. We remain on target to reduce aircraft on ground to single digits by the end of Q2 2020.

We continued to invest significantly in R&D and took important steps towards becoming a leader in low carbon technologies.

We grew our electrical capabilities with the acquisitions of Siemens’ eAircraft business and a majority stake in Qinous, as well as developing new in-house hybrid-electric solutions.”

  • Strong 2019 underlying operating profit driving FCF; reinforcing our confidence for 2020
  • Good end to 2019: strong Civil Aerospace aftermarket; better Power Systems trading in Q4
  • Underlying core operating profit up 25% to £810m; reported group operating loss £(852)m
  • Core FCF £911m led by higher profit and reflecting £173m Trent 1000 insurance receipts
  • £0.5bn improvement in net cash* position to £1.4bn; gross debt reduced by £1.1bn
  • Trent 1000 in-service cash costs £578m; £1.4bn exceptional charge in 2019 results
  • Trent 1000 guidance unchanged from November trading update
  • Record widebody engine deliveries; 14% lower OE unit loss; 64% share of new orders
  • Defence: record £5.3bn order intake driving 26% order book growth and healthy cash flow
  • Power Systems: revenue up 4% & operating margin +90bps despite market challenges
  • 2020: underlying operating profit up ~15%; at least £1bn FCF; excl. any material COVID-19 impact
  • Remain confident in mid-term target of at least £1 per share of FCF (>£1.9bn FCF)

COMMENTING ON ROLLS-ROYCE PLC’S ACTIVITIES IN AFRICA, PATRICK REGIS, PRESIDENT FOR AFRICA & MIDDLE EAST, SAID:

“Africa is entering a new era buoyed by the promise of free trade, open skies and resilient growth.  Home to the world’s fastest-growing aviation market and set to influence the shape of global energy trends, Africa is in a unique position to pursue innovative clean energy technologies.  As we enter this new decade, we are focused on growing our presence across the continent and partnering with Africa’s dynamic and forward-looking policymakers, investors and industry leaders to help close the deficit in electrification and support a more sustainable industry powered by innovation and collaboration.”

ROLL-ROYCE CIVIL AEROSPACE DIVISION – AFRICA – OPERATIONAL UPDATE

In 2019:

·        We delivered 17 aircraft, with entry into service:

o   Air Senegal – 2x A330neo

o   Air Mauritius – 2x A330neo

o   Egyptair – 6x Boeing 787 Dreamliners

o   SAA – 2 x A350

•       We have 75 aircraft in service and 35 on order

•       Our average fleet age is 5.2 year in service

•       Total number of Customers: 20 in 14 countries   

•       Market share of widebody passenger aircraft in service is 50%

•       Market share of widebody passenger aircraft backlog is 100%

What to expect in 2020

•       Entry into Service:

o   Uganda Airlines x2 A330neo

o   Ethiopian x 2 A350

o   Rwandair x 2 A330neo

SAA Airbus A350

2019 FULL YEAR GROUP HIGHLIGHTS

Financial:

  • Both Group and core underlying operating profit increased 25% to £808m and £810m respectively; led by a £195m organic improvement in Civil Aerospace underlying operating profit to £44m and underlying profit growth in Power Systems of 15% following better Q4 trading
  • Strong Group free cash flow (FCF) of £873m (2018: £568m) and core FCF £911m (2018: £648m), driven by improved underlying operating profit and Civil aftermarket cash margin; £578m Trent 1000 in-service cash costs partly offset by £173m insurance receipt
  • FCF before working capital movement (inventory, receivables & payables), insurance receipts and Trent 1000 costs was £747m, 79% higher than the prior year (2018: £418m)
  • Trent 1000 exceptional programme charge of £1,361m consistent with our November trading statement, driving reported operating loss of £(852)m (2018: £(1,161)m)
  • Core R&D cash spend increased modestly to £1,108m; good progress on electrical strategy including acquisition of Siemens’ eAircraft business and strengthening of hybrid capabilities in Power Systems; small modular reactor (SMR) development progressing following UK Government matched funding; investment in future opportunities in Defence (Tempest, Future Vertical Lift, B-52)
  • Net cash excluding lease liabilities improved to £1,361m (2018: £840m); gross debt £1.1bn lower

Operational:

  • Civil Aerospace: record 510 widebody engines delivered; further progress in reducing average widebody OE loss, down 14% to £1.2m; 6% growth in large engine installed fleet to 5,029 with engine flying hour growth of 7%. Widebody market share of 64% achieved on new orders in 2019
  • Power Systems: revenues up 4%; strong power generation growth and market share gains in Asia; increased services penetration; underlying operating profit margin up 90bps to 10.1%
  • Defence: excellent performance in 2019 on both orders and cash flow; record order intake of £5.3bn and book-to-bill ratio of 1.6x driving healthy cash flow; 499 aero engines delivered
  • ITP Aero: good underlying revenue growth of 21% and strong profit growth to £111m
  • Restructuring plan on track; 2,900 cumulative headcount reduction with run rate cost savings of £269m achieved since the programme commenced in June 2018

Civil Aerospace in-service performance:

  • Trent XWB now our second largest installed fleet; leading engines now in their fifth year in service. Fleet leader has flown over 22,000 hours without a shop visit; Trent XWB-84 OE deficit reduced by over 20% in 2019 and remains on track to reach breakeven by the end of 2020
  • Trent 1000: roll-out of technical fixes progressing well, further actions underway to reduce customer disruption; in-service cash costs unchanged at £2.4bn across 2017-23. AOG reduction to single-digit by end of Q2 2020, unchanged since November update
  • Design progressing on track for the improved Trent 1000 TEN high pressure turbine (HPT) blade, the last major issue to resolve; certification of this component still expected in the first half of 2021

Market environment: mid-term ambition of £1 FCF per share remains supported

  • Updated widebody engine delivery expectations of 450 in 2020 and 400-450 per year over the mid-term, following previously announced airframer build rate reductions
  • Despite challenges in certain Power Systems end markets, growth expected to continue led by mission-critical power generation, rising services penetration and further geographical expansion
  • Defence targeting a number of attractive mid-term growth opportunities, particularly in the US where we are well positioned
  • The outbreak of COVID-19 represents a macro risk and is likely to have an impact on air traffic growth in the near term; however long term growth trends remain intact
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