LOCATIONS
MARITIME
24 Dec 19. Cotecmar delivers MMI-35 interceptors to the Honduran Navy. Cotecmar shipyard has delivered two Multi-Mission Interceptor (MMI-)35 high-speed interceptor boats to the Honduran Navy. MMI 35 boats’ sale to Honduras is the first export of this type of vessel after an association agreement signed between Cotecmar and SAFE Boats International two years ago. The boats are licensed products assembled in Colombia for the Latin American market. The agreement includes co-production of SAFE models already in use in Central and South America such as the Defender, Apostle, and Full Cabin Jet Boats along with the MMI 35. The deal encompasses a wide range of collaboration including programme management, training, factory production training and sub-assembly and integration by COTECMAR in Colombia. (Source: Jane’s)
23 Dec 19. Damage to Admiral Kuznetsov ‘not critical.’ Media reports that a fire that engulfed Russia’s only aircraft carrier earlier this month caused damage worth RUB95bn (USD1.5bn) do not “correspond to reality”, according to the head of the company that owns the shipyard in Murmansk where the incident happened. Alexei Rakhmanov, head of the United Shipbuilding Corporation (USC), was quoted by state news agency TASS as saying on 19 December that “the information of some media that the amount of damage caused by the fire on Admiral Kuznetsov is allegedly equal to the cost of the aircraft carrier itself is completely untrue”. Russian newspaper Kommersant had quoted sources at the headquarters of the Northern Fleet as saying that the damage caused by the fire on 12 December at Shipyard No 35 could reach RUB95bn. (Source: Jane’s)
22 Dec 19. Turkey’s First-Generation Submarine Piri Reis Hits the Seas. Turkey’s first Type 214 class submarine TCG Piri Reis hit the seas on Dec. 22 with a ceremony held in the northwestern province of Kocaeli’s Gölcük district.
“Today, we gathered here for the docking of Piri Reis. As of 2020, a submarine will go into service each year. By 2027, all six of our submarines will be at our seas for service,” President Recep Tayyip Erdoğan said during a speech at the ceremony. “Our aim is to promptly actualize our national submarine project.”
During the ceremony, the first weld of TCG Seydi Ali Reis was also carried out. Turkish state-owned shipyard GTK formally launched first Type 214TN attack submarine for Turkish Naval Forces Command on 22 December for delivery in 2020. TCG Piri Reis is the first of six Reis-class submarines being locally built with support of TKMS as part of YTDP project.
TCG Piri Reis, the first vessel of Turkey’s New Type Submarine Project, is planned to start operating in 2020. The project, carried out by the Undersecretariat for Defence Industries, will add a total of six vessels to the Turkish Navy’s inventory. The Type 214 class vessels are regarded as a first for the Turkish Navy due to its air-independent propulsion characteristics brought by their fuel cell technology. The vessels also can deploy heavyweight torpedoes and anti-ship missiles and lay mines against targets, both at sea and on the ground. (Source: defense-aerospace.com/ Hurriyet Daily News)
23 Dec 19. US Navy’s Metal Shark patrol boat to begin full-rate production. The welded-aluminium patrol boat is nearing the completion of operational test and evaluation. Credit: Metal Shark. The US Navy’s new-generation Metal Shark-designed ‘40 PB’ patrol boat platform is set to transition to full-rate production. Shipbuilder Metal Shark said that the 40ft mono-hull patrol boats are close to completion of operational test and evaluation (OT&E) trials.
The 40 PB platform is intended to replace up to 160 US Navy patrol vessels deployed around the globe.
The US Navy selected the company’s 40 Defiant design in 2017. Metal Shark produced two boats for testing.
Metal Shark intends to undertake full-rate production of the boats at its manufacturing site in Jeanerette, Louisiana. The plan is to deliver one boat every four weeks.
The 40 Defiant provides improved capabilities and firepower compared to boats used by the navy’s Coastal Riverine Forces (CRF).
The platform includes foundations for MK 16 weapons and remote-operated, optically-guided MK 49/MK 50 weapons systems.
Furthermore, the boat is fitted with ballistic protection systems to sustain firefights and provide protection against hostile fire.
The system allows the crew to respond to swarm attacks. The armoured pilothouse can accommodate a crew of five.
An advanced communications and sensor suite has been incorporated in the vessel to provide the crew with increased situational awareness and fleet connectivity.
Metal Shark CEO Chris Allard said: “The need for more advanced and capable vessels designed to discourage asymmetric threats and to respond to them with overwhelming force has led to the development of this radically different patrol boat platform.
“While we designed the 40 Defiant to meet the US Navy’s PB-X mission requirements, this vessel is driving the evolution of our entire military patrol boat lineup and offers a glimpse into the future direction of military patrol.” (Source: naval-technology.com)
23 Dec 19. PT PAL lays down Indonesia’s fifth and sixth KCR-60M attack craft. Indonesia’s state-owned shipbuilder, PT PAL, has laid down the fifth and sixth KCR-60M fast attack craft on order for the country’s navy (Tentara Nasional Indonesia – Angkatan Laut: TNI-AL). Keels for the vessels were laid down on 20 December in the assembly hall at PT PAL’s warship division in Surabaya. Steel for the vessels were cut in August 2019 at the same location. The KCR-60M class displaces about 460 tonnes at full load, and has an overall length of 59.8 m, with an overall beam of 8.1m, and a hull draught of 2.6m. It can attain a top speed of 28kt and a standard range of 2,400n miles at 20kt. (Source: Jane’s)
20 Dec 19. China hands over two ex-PLAN frigates to Bangladeshi Navy. Two Type 053H3 (Jiangwei II)-class frigates decommissioned by the China’s People’s Liberation Army Navy (PLAN) have been handed over to the Bangladeshi Navy (BN). The BN said in a statement that the 2,200-ton diesel-powered ships, formerly known as Jiaxing (pennant number 521) and Lianyungang (522), were transferred in a ceremony held on 18 December at the Shenjia Shipyard in Shanghai after being overhauled.
The 112m-long and 12.4m-wide vessels, which will be renamed BNS Umer Farroq (also spelled Umar Faroo ) and BNS Abu Ubaidah once in BN service, were set to head to Bangladesh following the handover ceremony.
Pennant numbers F 16 and F 19 have been painted on the hulls of the ships, which can reach a top speed of 24 n miles, according to the BN.
According to Chinese media, the BN procured the two ex-PLAN frigates under a deal signed in June 2018.
In PLAN service the primary armament of the ships consisted of a twin 100mm gun, eight YJ-83 anti-ship missiles fired from slant-mounted containerised launchers, an octuple launcher for HHQ-7 short-range surface-to-air missiles (SAMs), and four twin 37mm gun mountings. None of these have been removed, although the YJ-83 and HHQ-7 systems may have been modified in line with the C-802A and FM-90N export versions, particularly with regard to the missiles supplied.
In September 2019 the BN signed a contract for two more Type 053H3 frigates, including ex- Putian (pennant number 523), which is expected to be renamed BNS Khalid Bin Walid once in BN service. (Source: Jane’s)
20 Dec 19. OCEA hands over 84m OPV to the Philippine Coast Guard. trials in October 2019. French shipbuilder OCEA has delivered an 84 m offshore patrol vessel (OPV) that was on order for the Philippine Coast Guard (PCG). The vessel, which will be known as BRP Gabriela Silang (8301) once in service, was handed over to the service at Saint Nazaire, France, on 18 December 2019. It was launched at by OCEA at Les Sables d’Olonne in July 2019. Gabriela Silang is powered by twin MTU 16V 4000 M73 diesel engines and has a contractual maximum speed of 22 kt with a range of 8,000 n miles at 12kt. It can accommodate a crew of 40, with 26 additional spaces for mission-specific crew. The vessel, which has been built to OCEA’s proprietary OPV 270 design, has a flight deck that can accommodate a five-tonne-class helicopter and two telescopic cranes that can launch and recover 9.2m rigid hull inflatable boats (RHIBs). (Source: Jane’s)
20 Dec 19. Royal Navy’s HMS Trent makes maiden appearance in Portsmouth. The Royal Navy’s Batch 2 River-class offshore patrol vessel HMS Trent has arrived in Portsmouth for the first time. HMS Trent is the third of five new second-generation patrol ships intended to support the Royal Navy’s maritime security operations. The 2,000t vessel paid a visit to the South Railway Jetty after completing the first voyage with the ship’s company from the Clyde. The White Ensign was hoisted for the first time on the vessel during a ceremony in Portsmouth.
HMS Trent commanding officer Lieutenant Commander James Wallington-Smith said: “Today is an important milestone in HMS Trent’s journey. The ship’s company and our partners in BAE Naval Ships have put in a tremendous amount of work to ensure she is ready to be accepted into the fleet.
“Trent now enters the next phase, which will see her develop into a warship, being made ready for sustained patrol operations in the new year.”
The ship will be used for a variety of missions, including anti-smuggling, anti-piracy, maritime defence, and border patrol.
Trent has a 40-strong crew and can accommodate up to 50 troops, as well as Merlin and Wildcat helicopters. It completed the first sea trials in June. The ship is expected to be commissioned into the navy next year.
Forth, the first in the fleet, set sail for the Falkland Islands last month to take over from HMS Clyde and serve as the guardian of the area.
The five River-class ships will be deployed to perform missions in the UK and overseas, including in the Caribbean, Asia-Pacific and Mediterranean regions. (Source: naval-technology.com)
AIR
26 Dec 19. Russian Helicopters holding company (part of Rostec State Corporation) and representatives of the Russian Ministry of Defense started joint state tests of Mi-26T2V heavy-lift military transport helicopter which are to last until the end of 2020.
As part of Russian Helicopters’ program on upgrading the heavy Mi-26 helicopter for the Russian Aerospace Forces, in 2018 Rostvertol produced a prototype of the modernized Mi-26T2V helicopter.
“Currently, Mi-26T2V prototype has successfully completed preliminary tests at the manufacturing facility, allowing us to start the joint state tests program which is to last through the entire year 2020. We have taken into account all preferences of the customer and implemented them in Mi-26T2V helicopter design. The performance of the machine will be considerably improved due to the modernization. I am convinced that Mi-26T2V helicopter will have a rightful place in the Russian armed forces,” said Director General of Russian Helicopters holding company Andrey Boginsky.
The tests will take place on four proving grounds. The crew of the helicopter will include representatives of the Russian Aerospace Forces and will check the main performance characteristics of the helicopter and operation of new equipment.
The modernized Mi-26T2V helicopter which can be used at any time of the day and has modern avionics is a heavy-lift military and transport helicopter which can carry up to 20 tonnes of cargo. The rotorcraft has the modern NPK90-2V integrated avionics which ensures piloting during the day and at night, enabling the helicopter to fly the route in an automatic mode, come to a preset point, perform approach and final approach maneuvers, and return to the main or alternate aerodrome. The onboard defense system of Mi-26T2V ensures protection of the helicopter from being hit by air defense missile systems.
Mi-26T2V will be able to make flights in the conditions of any region, including those with complex physical and geographical and adverse climatic conditions, at any time of the day, at equipped and unequipped routes, or even without routes, and on featureless terrain, in conditions of fire and information counteraction of the enemy. The number of crew members of the modernized helicopter (five persons) remained unchanged.
Currently, Russian Helicopters holding company produces the entire range of military helicopters for the Russian military agency in accordance with contracts. These machines are necessary for performing the tasks of the Russian armed forces: Ka-52 Alligator, Mi-28NM Night Hunter and military Mi-35M attack helicopters, Mi-38T paratrooper carriers and transport helicopters, Mi-8/17 military transport helicopters, heavy-lift military transport Mi-26 rotorcraft, training and specialized machines.
JSC “Russian Helicopters”, a part of Rostec State Corporation, is a leading player in the global helicopter industry, the sole Russian designer and manufacturer of helicopters. The Holding Company was established in 2007 and is headquartered in Moscow. We operate five helicopter assembly plants, two design bureaus, component production and maintenance enterprises, aircraft repair plants and one helicopter service company providing after-sales support in Russia and abroad. The customers of the Holding Company are the Ministry of Defense, the Ministry of Home Affairs, EMERCOM of Russia, and other state customers, Gazpromavia, UTair Aviation company, large Russian and foreign companies.
State Corporation Rostec is one of the largest industrial companies in Russia. It unites more than 800 scientific and industrial organizations in 60 regions of the country. Its key areas of activity are transport engineering, electronics, medical technology, chemistry and innovative materials. Rostec holdings form three clusters: electronics, weapons and aviation. The corporation’s portfolio includes such well-known brands as AvtoVAZ, KAMAZ, Kalashnikov, Russian Helicopters, Uralvagonzavod and others. Rostec is active in the implementation of all 12 national projects. The company is a key provider of Smart City technology, it is engaged in the digitalization of public administration, industry and social sectors, and it is developing plans for the development of 5G wireless technologies, an Industrial Internet of Things, big data and blockchain systems. Rostec partners with leading world manufacturers such as Boeing, Airbus, Daimler, Pirelli and Renault. The corporation’s products are delivered to more than 100 countries worldwide. Almost a third of the company’s revenue comes from the export of high-tech products.
20 Dec 19. Poland’s GROM special forces unit receives Black Hawk helicopters. The Polish GROM special forces unit received four S-70i Black Hawk helicopters in an official handover ceremony at the 1st Air Base in Warsaw on 20 December.
The S-70i helicopters were manufactured in Poland by Lockheed Martin Sikorsky subsidiary Polskie Zakłady Lotnicze (PZL) Mielec. Each Black Hawk costs PLN75m (USD20m), including special forces equipment, according to Poland’s Ministry of National Defence (MND).
“I know that the GROM special unit requires twice as many new helicopters, but I hope we will be able to complete them soon,” Polish President Andrzej Duda said at the ceremony.
The first Polish Black Hawks were delivered in basic configuration and will be updated to the special forces standard. (Source: Jane’s)
23 Dec 19. USAF KC-46 Pegasus completes maiden global circumnavigation. The US Air Force’s (USAF) KC-46 Pegasus aerial refuelling and transport aircraft has completed the first flight around the world last month in a seven-leg trip. A KC-46A aircraft from the USAF’s 22nd Air Refueling Wing conducted the flight between 13 and 26 November. The 13-day trip marked the first global circumnavigation for the KC-46A Pegasus. As part of the journey, the tanker visited the Dubai Air Show for the first time. The flight allowed aircrew and maintainers to train at multiple locations. The first stop was at Royal Airfield Mildenhall, UK, which was followed by the USAF displaying the KC-46 as a static display at this year’s airshow in Dubai.
USAF 22nd Operations Group commander colonel Thad Middleton said: “Our operators and maintainers had the privilege of circumnavigating the globe in the airforce’s newest and most capable air refuelling platform.
“We have worked with our partners at the Tanker Airlift Control Center on previous overseas missions, but our movement across the Atlantic, Indian Ocean and the South Pacific allowed us to truly flex the system.
“It goes without saying, but the crew members gained invaluable training in terms of oceanic procedures, unfamiliar airfield operations and dynamic mission planning.”
Following the airshow, the aircraft flew to Al Udeid Air Base, Qatar, to demonstrate its capabilities to Qatari military personnel.
The stop included a refuelling mission with a C-17 aircraft and helped improve interoperability with Qatar.
The Boeing aircraft is undergoing initial operational testing and evaluation to test its capabilities and effectiveness even as the airforce flagged concerns with certain issues identified during the inspection, including a problem with the cargo locks. The USAF approved a fix for the locks last month. (Source: airforce-technology.com)
23 Dec 19. US Air Force’s Hill base receives final F-35 Lightning II fighter. The US Air Force’s (USAF) Hill Air Force Base (AFB) in Utah has received its final F-35 Lightning II fighter aircraft. Receipt of the aircraft by the fighter wings marks the completion of the procurement programme for 78 F-35As at Hill AFB.
The active duty 388th and Air Force Reserve 419th fighter wings at Hill AFB operate the aircraft.
Hill AFB received the first operational F-35 jets in September 2015. The fighter wings have performed more than 17,500 sorties with the F-35s.
388th Fighter Wing commander colonel Steven Behmer said: “This is a great milestone. It marks the end of the beginning for us. Since receiving our first aircraft, our airmen, alongside the 419th Fighter Wing, have remained focused on expanding the combat capabilities of the F-35A.”
Of the 78 F-35A aircraft, 72 are assigned equally among the 4th, 421st and 34th fighter squadrons of the 388th fighter wing. The remaining six are used for backup.
The squadrons are supported by the 419th FW’s 466th fighter squadron. The two wings support the US combat operations in the Middle East.
419th FW commander colonel Regina Sabric said: “Receiving the final aircraft this month is a great way to close out 2019, while looking forward to another year full of new challenges, capabilities and firsts with the F-35.” (Source: airforce-technology.com)
19 Dec 19. Qatar shows off new Apaches. The Qatar Emiri Air Force (QEAF) displayed its new AH-64E Apache Guardian helicopters for the first time during the country’s annual National Day Parade on 18 December. Local television coverage of the event showed seven Apache Guardians participating in the flyby. The US Department of Defense awarded a USD667.5m contract to Boeing in May 2016 to build 24 AH-64E attack helicopters for Qatar. The US Embassy in Doha announced in May that the first one had been handed over to the QEAF at Boeing’s Mesa plant in Arizona. It was announced in the same month that the US State Department had approved the sale of a second batch of 24 AH-64Es to Qatar at an estimated cost of USD3bn. (Source: Jane’s)
PLANT CLOSURES, JOB LOSSES AND STRIKES
23 Dec 19. Pearl Harbor shipyard jobs lost. New U.S. Navy contracting terms have resulted in a pullout by a major contractor that is expected to result in the loss of hundreds of jobs at Pearl Harbor Naval Shipyard, officials said. BAE Systems PLC will no longer perform Navy surface ship repair at Pearl Harbor, eliminating about 325 jobs, The Honolulu Star-Advertiser reported. The Navy contracts with private shipyards and other firms for maintenance on non-nuclear surface ships.
The multinational security, aerospace and ship repair firm was the prime contractor for repair projects through which subcontractor surface ship work was funneled. BAE announced a five-year multi-ship, multi-option contract in 2014 for modernization and maintenance on nine destroyers and cruisers at Pearl Harbor. But multi-ship, multi-option contracts using cost-reimbursement have been replaced nationally by a Navy strategy called “multiple award contract-multi order,” officials said. The new system uses firm-fixed-price contracts that do no allow adjustments for cost overruns, officials said.
BAE cannot bid on smaller, $1m to $2m contracts under the new Navy format, but can seek major ship projects that can be $50m to $100m, officials said.
BAE’s decision not to tender a new bid resulted from analysis of the Pearl Harbor business environment under the new contracting structure, spokesman Karl Johnson said.
More than 6,000 civilian and military personnel primarily work on submarines at Pearl Harbor. BAE was assigned the use of pierside space and Dry Dock 4 and expanded its surface ship workforce using hundreds of subcontracted workers.
Under the new construct, the Navy will earmark the smaller jobs for small businesses, “so the big guys like BAE cannot bid on the smaller work, which kept them busy between the big jobs,” said John Stewart of the Ship Repair Association of Hawaii. (Source: Defense News Early Bird/AP)
23 Dec 19. Austria’s remaining Saab 105s grounded. The 12 remaining airworthy Saab 105 twin-jet trainers operated by the Austrian Air Force (AAF) have been grounded after cracks were found in the bolts connecting their tail sections to their centre fuselage. The news was confirmed to Jane’s by AAF officers at the 10-12 December Defence IQ Air Power Eastern Europe conference, held at Salzburg Barracks in Austria. Of the dozen 1970s-vintage Saab 105s still flying out of 40 originally delivered, cracks were found in 10 of them. The advice to check the Saab 105s came from the Swedish Air Force (SwAF), which uses the similar Sk 60 (which has less powerful engines but a more modern cockpit). Given that Austrian technicians found further cracks on sections that the SwAF had not noted, the entire AAF Saab 105 fleet was subsequently grounded. AAF sources told Jane’s that, despite the end-of-service date for the Saab 105 fleet coming by the end of 2020, the service will attempt to renew the cracking bolts and keep the aircraft in service. This is because it is much cheaper to fly Saab 105s for some of the AAF’s air policing and quick-reaction alert duties than to fulfil those missions by exclusively using the AAF’s 15 Tranche 1 Eurofighters throughout 2020, the flying cost of which per aircraft is 10 times that of the Saab 105. (Source: Jane’s)
MILITARY AND GOVERNMENT
PERSONNEL
20 Dec 19. The Pentagon’s revolving door: Three in, five out. U.S. Department of Defense acting Chief Management Officer Lisa Hershman delivers remarks at the inaugural DoD Gears of Government Awards on May 1, 2019. The Senate confirmed three of President Donald Trump’s Pentagon picks Thursday, just as five senior officials at the department are leaving.
On Thursday, chief management officer nominee Lisa Hershman was confirmed with chief information officer nominee Dana Deasy and Navy general counsel nominee Robert Sander. The names were part of a package of final business for the Senate, just before its holiday recess.
Hershman, a former CEO, became acting chief management officer roughly a year ago, amid the resignation of John Gibson. Newly established by Congress to streamline the Pentagon and root out inefficiencies, the Pentagon’s No. 3 civilian found nearly $5bn in savings by the end of fiscal 2018.
“I know the administration is eager to continue to have her not just working on behalf of the American people, but in an official capacity because she can save even more money and drive even more efficiencies than she has already been achieving,” Republican Sen. Todd Young said Thursday. Young represents Hershman’s home state of Indiana and helped shepherd her nomination.
Deasy is already CIO, but congressional action made the position confirmable by Congress. The confirmation comes as the Pentagon is grappling with how to harness artificial intelligence and as Amazon challenges the award of the mammoth Joint Enterprise Defense Infrastructure contract, also known as JEDI, to Microsoft last month.
Sander was the principal deputy general counsel for the Army and acting general counsel. He also served as an attorney with the Office of the Director of National Intelligence and in the counterterrorism section of the Justice Department’s National Security Division.
In the last week, the Pentagon communicated the departures of Randall Schriver, the Pentagon’s top Asia policy official; Jimmy Stewart, the acting undersecretary of defense for personnel and readiness; Kari Bingen, the principal deputy undersecretary of defense for intelligence; and Tina Kaidanow, the senior adviser for international cooperation. Defense Advanced Research Projects Agency chief Steven Walker is also leaving.
After Defense Secretary Mark Esper predicted progress toward filling Pentagon jobs in August, the Senate confirmed Barbara Barrett as Air Force secretary, Ryan McCarthy as Army secretary and Gen. John Hyten as the vice chairman of the Joint Chiefs of Staff. (Source: Defense News)
INDUSTRY
PERSONNEL
27 Dec 19. 700 BAE Systems apprentices to be recruited in 2019. During 2019, we plan to recruit nearly 700 apprentices across our UK business, a 30 per cent increase on last year.
The new recruits will join the Air, Land and Maritime businesses in September 2019 and will embark on one of 25 training programmes, which provide the opportunity to combine full time employment with studying for a recognised qualification.
The Air sector is recruiting almost half of the company’s UK apprentices at its sites in Samlesbury and Warton, where they will have the opportunity to work on a unique range of exciting projects including Typhoon, F-35 – the world’s largest defence programme – and play a key role in developing emerging technologies for future combat air systems, supporting the UK’s world-leading combat air capability for decades to come.
Charles Woodburn, Chief Executive Officer at BAE Systems, said: “We are proud to be one of the UK’s largest employers of apprentices and our plan to recruit nearly 700 apprentices next year reflects our ongoing commitment to nurturing talent and developing high end skills for the future. With technology becoming ever more advanced and integrated in the workplace, it is crucial that we train the next generation of engineers and business leaders to develop the necessary skills which will be needed to drive innovation, solve complex challenges and build on our position as one of the UK’s most innovative and productive companies.”
Ahmed Munshi, 22, from Samlesbury, Lancashire, is in his penultimate year of a Project Management Apprenticeship. Ahmed said: “When I finished school, I was encouraged to follow a route into university however I wanted to gain a practical, hands-on experience while earning and studying for a degree. My apprenticeship experience has been at full speed from the beginning and really pushes me to exceed – both in my work placements and during my studies towards my degree. I would absolutely recommend an apprenticeship with BAE Systems to anyone who wants to gain practical work experience, while working towards a career with real long-term prospects.”
BAE Systems invests approximately £90m per year in education, skills and early careers activities in the UK and has around 2,000 apprentices in training across its UK businesses at any given time, with circa 95% securing permanent roles each year.
The majority of BAE Systems’ apprentices train for engineering related roles and undergo a three to four-year training programme, with many progressing to study Bachelor’s and Master’s degrees. The business also offers direct entry onto new degree apprenticeships.
BAE Systems currently employs over 34,000 people in the UK and is one of the country’s largest employers of engineers, with around 64 percent of its staff employed in engineering or engineering-related roles.
The Company makes considerable investment in employee training, capital and R&D to support innovation and its high levels of productivity, both within its own businesses and among companies in its supply chain. The productivity of the BAE Systems’ workforce, as measured by gross value added per FTE worker, was almost 80 percent higher than the national average in 2016, at £128,000 per FTE employee.
BAE Systems was recently named #1 employer of apprentices in the UK on review website Rate My Apprenticeship and won the Macro Employer of the Year Award and the Recruitment Excellence Award at the 2018 National Apprenticeship Awards, recognising the business’ dedication to delivering high-quality apprenticeships.
22 Dec 19. Rolls-Royce cut apprentice and graduate schemes back by almost 30%. Industry and union alarmed as prestigious early careers programme scaled down. Rolls-Royce’s early careers programme has long been considered one of the most prestigious in the country. Rolls-Royce is slashing next year’s intake of apprentices and graduate trainees by almost 30 per cent, scaling back its early careers programme as it falls behind on a target to cut 4,600 jobs by mid-2020. The move by one of Britain’s best-known engineering firms has raised alarm bells in union and industry circles and will mark a more than 50 per cent reduction in annual trainee enrolment since 2014, the year the group was rocked by a string of profit warnings. The most recent reduction comes as Rolls-Royce struggles to contain the spiralling costs of a long-running crisis over the Trent 1000 engine, which powers Boeing’s 787 Dreamliner. Rolls-Royce’s early careers programme has long been considered one of the most prestigious in the country. EngineeringUK, the industry lobby group, estimates there is an annual shortfall of 59,000 engineering graduates and technicians to fill core engineering roles in the UK. In Rolls-Royce, unions have expressed their concerns about the company’s ageing workforce. The average age on the shop floor is 58, according to Unite. We were building up a buffer of headcount, of people, with no jobs to do Warren East, chief executive Warren East, chief executive, said the programme had to be cut back to reflect the company’s needs: Rolls-Royce had been taking on more apprentices and graduate trainees than there were jobs available. “We were building up a buffer of headcount, of people, with no jobs to do,” he said in an interview with the Financial Times. “We could accelerate the departure of some of the 55 to 65-year-olds, but you have to strike a balance if you are trying to refresh talent . . . The reality is you are reliant on a certain amount of tacit knowledge and expertise.”
Rolls-Royce is cutting the annual early-careers intake from this year’s 465 to about 330 people in 2020. The number of apprentices is being trimmed by 16 per cent to about 180 while graduate traineeships will be cut 40 per cent to 150. The company said the sharp fall in graduate trainees would allow the group to retrain some of those who would otherwise lose their jobs as the company restructures. However, the trend has worried some longtime Rolls-Royce executives: 20 years ago the group temporarily halted its graduate intake and “you can still see the dip in the careers profile”, said one. “You ask where are the upcoming managers?” Recommended Rolls-Royce Holdings PLC Rolls-Royce warns airlines of fresh Trent 1000 engine delays Mr East also confirmed that Rolls-Royce was running six months behind on the restructuring programme announced last year, which called for 4,600 management job cuts to simplify the bureaucratic processes of the 113-year-old company. He said this was in part because of the need to resolve the problems of the Trent 1000, where turbine blades were wearing out faster than expected. Rolls-Royce last month revealed it would suffer a £2.4bn cash hit between 2017 and 2023 and a £1.4bn drop in profit this year as a result of the troubles, which have angered airline customers and the US aircraft maker Boeing. “It is probably going to take us six months longer than we thought it was going to take,” he said in an interview with the Financial Times. (Source: FT.com)
U.S. APPOINTMENTS
23 Dec 19. Boeing [NYSE: BA] announced today that its Board of Directors has named current Chairman, David L. Calhoun, as Chief Executive Officer and President, effective January 13, 2020. Mr. Calhoun will remain a member of the Board. In addition, Board member Lawrence W. Kellner will become non-executive Chairman of the Board effective immediately.
The Company also announced that Dennis A. Muilenburg has resigned from his positions as Chief Executive Officer and Board director effective immediately. Boeing Chief Financial Officer Greg Smith will serve as interim CEO during the brief transition period, while Mr. Calhoun exits his non-Boeing commitments.
The Board of Directors decided that a change in leadership was necessary to restore confidence in the Company moving forward as it works to repair relationships with regulators, customers, and all other stakeholders.
Under the Company’s new leadership, Boeing will operate with a renewed commitment to full transparency, including effective and proactive communication with the FAA, other global regulators and its customers.
“On behalf of the entire Board of Directors, I am pleased that Dave has agreed to lead Boeing at this critical juncture,” Mr. Kellner said. He added, “Dave has deep industry experience and a proven track record of strong leadership, and he recognizes the challenges we must confront. The Board and I look forward to working with him and the rest of the Boeing team to ensure that today marks a new way forward for our company.”
Mr. Calhoun said, “I strongly believe in the future of Boeing and the 737 MAX. I am honored to lead this great company and the 150,000 dedicated employees who are working hard to create the future of aviation.”
BATTLESPACE Comment: This announcement may come as no surprise to many, Dennis Muilenburg, in our view, should have resigned at the outset of the 737 Max debacle which cost so many lives. Does this move mean more problems ahead for the MAX and more delays getting it back into service in early 2020? The Editor first met Dennis Muilenburg when he ran FCS for Boeing. His reaction to the FCS failure was similar to that of the 737 MAX. just say nothing. It was only at AUSA Winter that General Cartwright announced the cancelation of FCS, with Boeing saying little. Boeing’s overall PR machine has suffered under Dennis Muilenburg with the company seeming to remain aloof under certain issues affecting the company and the industry at large.
23 Dec 19. The Boeing Company (NYSE: BA) today named Niel Golightly as the company’s senior vice president of Communications, effective Jan. 1, 2020. He succeeds Anne Toulouse, who previously announced her plans to retire in early 2020. Golightly, 61, will report to interim CEO Greg Smith initially, and then to President and CEO David Calhoun from Jan. 13 onward. Golightly will serve on the company’s executive council and be based in Chicago.
26 Dec 19. The Boeing Company (NYSE: BA) announced today that J. Michael Luttig, 65, valued Counselor and Senior Advisor to the Boeing Board of Directors, has informed the Board of his long-considered retirement at year end. Luttig, who served as Boeing’s General Counsel from 2006 until assuming his current responsibilities in May 2019, has been managing legal matters associated with the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, and advising the Board on strategic matters.
“Judge Luttig is one of the finest legal minds in the Nation and he has expertly and tirelessly guided our company as General Counsel, Counselor, and Senior Advisor,” said Interim Boeing President and CEO Greg Smith. “We are deeply indebted to Judge Luttig for his extraordinary service to Boeing over these nearly 14 years, especially through this past, challenging year for our company,” said Smith. “The Board and I will always be grateful for the Judge’s remarkable service to The Boeing Company – and I will personally always be grateful for his friendship.”
Luttig joined Boeing after serving 15 years on the U.S. Court of Appeals for the Fourth Circuit. Prior to his appointment to the Federal Bench, Luttig served as Assistant Attorney General and Counselor to the Attorney General of the United States. Luttig worked at The White House from 1981-82 under President Ronald Reagan. From 1982 to 1985, he served as a law clerk to then-Judge Antonin Scalia of the United States Court of Appeals for the District of Columbia Circuit and thereafter as a law clerk and then as Special Assistant to the Chief Justice of the United States.
“It has been an honor to serve as Boeing’s General Counsel and as Counselor and Senior Advisor to the Boeing Board of Directors,” said Luttig. “I will be eternally grateful to The Boeing Company, to the Boeing Board of Directors, to CEOs Dennis Muilenburg and Jim McNerney, and to former Lead Director Ken Duberstein for the opportunity and the privilege to serve this great company and the extraordinary men and women who, together, are The Boeing Company. My respect and admiration for these very special men and women – whom I am proud to call my friends — and for The Boeing Company, is endless.”
20 Dec 19. Northrop Grumman Corporation (NYSE: NOC) has named Lesley Kalan corporate vice president and chief strategy and development officer, effective Jan. 1, 2020. Kalan will continue to report to Kathy Warden, chairman, CEO and president, Northrop Grumman. In her expanded role, Kalan will continue to lead the company’s public policy, regulatory and government affairs strategies. She will also develop, implement and lead the company’s business strategy and lead domestic business development and commercial partnerships.
“In this expanded role, Lesley will help to ensure our company is well positioned for future growth,” said Warden. “Her deep industry experience and business acumen will serve us well as we continue to solve our customers’ toughest challenges.”
Kalan has served as corporate vice president of government relations since Jan. 1, 2018; and prior to that, served as vice president of legislative affairs since 2010.