Rolls-Royce To Build New Engine Controls For OH-58D
Filed under: Business Line, Companies, Contract Awards, Events, Military Aviation, Rolls-Royce, Services, U.S. Army, development program, logistics, production program
The OH-58D Kiowa Warrior is the standard reconnaissance helicopter in use by the U.S. Army. As all Army Aviation it has seen a great deal of use in Iraq. Ultimately it will be replaced by the result of the current Armed Aerial Scout program. This replaced the failed Armed Reconnaissance Helicopter (ARH) program which was canceled in 2008. Due to this failure the Army must continue to invest money into the OH-58 to keep it fighting.
Rolls-Royce was awarded a contract to develop a new Full Authority Digital Engine Control (FADEC) for the aircraft. This system is one of the key components of the upgrades to the aircraft. No value for the contract was provided. FADEC systems are becoming common on helicopters and fixed wing aircraft and aid in managing fuel consumption and performance. Rolls-Royce manufactures the M250 engines for the Kiowa Warrior at their plant in Indianapolis.
Textron’s Earnings Reflect The Market
Filed under: Bell, Business Line, Companies, Earnings, Events, Military Aviation, Textron, commercial aviation, logistics, production program
Textron reported their third quarter earnings yesterday. They did beat expectations by not having a loss but had a profit of about 1 cent a share. This was a decline of ninety-eight percent from the year before. Despite all this the company is confident they will make a profit for a year and earnings would be as predicted.
Textron decline is caused by financial products and their civil air division. Sales of Cessna aircraft a luxury item right now were down a lot. The company has been reducing their participation in the financial sector due to the general downturn there. Despite Bell Helicopter’s struggles with the Armed Reconnaissance Helicopter (ARH) the military part of the company saw some growth.
There have been previous reports that Textron might sell Bell or other parts as it reorganizes to face the current economic downturn but so far that has not happened. As with everyone the company will have to wait and see how the economy recovers and what growth occurs.
Canada Buys CH-47 Helicopters
Filed under: Boeing, Business Line, Canada, Companies, Congress, Contract Awards, Countries, Events, Federal Budget Process, Military Aviation, United States, logistics, production program
Canada awarded Boeing a contact for fifteen CH-47 helicopters. The contract has a value of over $1 billion and requires and equivalent amount of offsets in the Canadian economy. Boeing already is selling the latest version of the heavy lift helicopter so valuable in Afghanistan to the U.S. and Great Britain. Canada being the third most heavily involved country in that war will certainly be able to use them.
The aircraft will be delivered in either late 2013 or early 2014 as they fit in to the current production. Canada has been requiring significant offsets in their latest round of contracts and this favor many U.S. companies as they have either Canadian subsidiaries or already buy parts and support from that nation.
So far the Obama Administration has made little changes to the existing plans for U.S. Army aviation modernization with the UH-60M, UH-72A and CH-47F. The replacement of the Armed Reconnaissance Helicopter (ARH) original canceled contract is also on current path for continuation at this time.
Textron to Sell Unit to Raise Cash
Filed under: Acquisitions, Business Line, Events, Federal Budget Process, Military Aviation, Woodward Governor, commercial aviation, production program
Textron Incorporated has been struggling of late due to downturns in the business jet market and the cancellation of the RH-70 Armed Reconnaissance Helicopter (ARH) contract that its component, Bell, was developing. Earlier this month Forbes reported that the company was looking at possibly selling portions of itself to keep cash flow going. At that time the discussion was about its finance business, but now CNNMoney.com writes that Textron agreed to sell its aircraft control and fuel management development and manufacturing group, HR Textron. This group will be purchased by Woodward Governor for about $365 million. This is to help that company expand its business in the airframes systems market. As there continue to be changes in the defense budget there will be more fallout among the defense industry. The Nineties saw significant mergers and contractions and that is certainly possible in the future as the U.S. military purchases less-and-less big ticket systems.
ARH’s first try is cancelled
Filed under: Bell, Congress, Department of Defense, Federal Budget Process, Military Aviation, Restructuring, U.S. Army, commercial aviation, development program, production program
After the close of the stock market this evening the Department of Defense announced that they are canceling the Armed Reconnaissance Helicopter (ARH) contract with Bell. The ARH-70 was to be a replacement for the OH-58D Kiowa Warrior aircraft that has been in service for over twenty years. ARH was one of the programs created out of the end of the RAH-66 Comanche program. Bell had run into cost and schedule growth issues with the program, much of it probably due to an overly optimistic US Army estimate on the program. The program had suffered a Nunn-McCurdy cost breach and that required DoD to either certify to Congress on the necessity of the program, or cancel it. Now the Army will start over.
See The Wall Street Journal for more.
House marks appropriations bill
Filed under: Bell, Boeing, Congress, Contract Awards, EADS, Federal Budget Process, Military Aviation, Northrop Grumman Corp., development program, logistics, production program
The House Appropriations Committee marked the FY09 budget before taking their August recess. See a story here. The Army’s struggling Armed Reconnaissance Helicopter (ARH) program was marked to delete 13 aircraft, and the Navy’s Presidential Helo was also decremented. The House also ordered that consideration of jobs would be a criteria for the source selection of the KC-45 tanker. Boeing won its protest of the award to Northrop-Grumman and EADS and forced DoD to reconsider the contract. The Senate needs to also mark the bill and then there will be a Conference mark up as well.
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