As if there hasn’t already been enough bad financial news, reports from UBS Investment Research and JPMorgan indicate that pre-owned business jet inventories continued to increase in August, leading both firms to warn that deliveries of new aircraft could fall as a result.
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The Society of Professional Engineering Employees in Aerospace (SPEEA) has publicly called on Boeing to “face the fact that the global network is a failure and bring the critical work back so the experienced employees can get the 787 back on track.”
Boeing today presented what it called its best and final contract offer to its approximately 27,000 employees represented by the International Association of Machinists and Aerospace Workers in Washington, Oregon and Kansas. The offer includes an 11-percent pay increase, cost-of-living adjustments and pension increase of $80 per month per year of service.
Boeing will resume flight-testing of its Model 777F cargo aircraft “as soon as possible,” the manufacturer said after the freighter’s first flight on Monday was curtailed by problems unrelated to aircraft performance.
Off the back of its 2001 contract to modernize the U.S. Air Force’s C-130, Boeing is offering its avionics modernization program (AMP) as a scalable architecture kit to extend the service life of the ubiquitous military transport. According to the company, more than 700 aging C-130s that could benefit from the upgrade are still in service.
Last month, bidders submitted proposals for the U.S. joint air-to-ground missile (JAGM) and they now await a contract award for a 27-month risk-reduction phase. That announcement is expected in August or September, with two teams being selected to demonstrate their technologies, including live-firing.
When Boeing rolled out its new ATC management system last summer, a satellite-based arrangement that takes a significantly different direction from the FAA’s solution, the aerospace giant offered few concrete details on how its plan would work.
Boeing’s planned Connexion airborne broadband data service was dealt a damaging blow last month when its three largest customers–American Airlines, Delta Air Lines and United Airlines–abruptly withdrew from the project in the face of their own fiscal difficulties. As a result, Boeing is left with no equity partners in the venture and only one customer, Lufthansa, for the fledgling in-flight Internet and e-mail service.
A General Electric spokesman confirmed the sale of its Garrett Santa Barbara completion center to Yankee Pacific and WestCap Partners Private Equity Fund. The deal is expected to close by the end of the month. The Santa Barbara, Calif.-based facility delivered the second of two Boeing Business Jet completions this year and has a contract with Bombardier for a series of Global Express completions.
The market for business jets–both new and used–has taken on a decidedly more global complexion in the past three years in the estimation of Jay and Josh Mesinger, CEO and vice president, respectively, of Boulder, Colorado-based J.Mesinger Corporate Jet Sales. “It used to be when the U.S. sneezed the rest of the world caught a cold,” said Jay Mesinger. “That’s not so much the case anymore, and we think that’s a good thing.”