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CONTRACTS PAGES 11
The Week Ahead
On Tuesday China plans to launch three
Yaogan military surveillance satellites
aboard a Long March 2C rocket from
its spaceport in Xichang. On Thursday a
United Launch Alliance Atlas V 501 rocket
is due to launch the U.S. Air Force’s sixth
Lockheed Martin-built Advanced Ex-
tremely High Frequency communications
satellite from launchpad SLC-41 at Cape
Canaveral in a mission delayed from two
previous attempts earlier this month.
Top Ranked Online Graduate
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RAYTHEON has $392.4m U.S. Navy contract for production/delivery of Lot 20 AIM-
9X Block II/II plus missiles and assoc. equipment for U.S. military and international
customers.
BAE SYSTEMS has $8.6m U.S. Navy contract for 20 E-2 parachute survival ensemble
units and 130 FLU-10 inflators for the Navy, plus 60 E-2 parachute survival ensemble
units and 70 FLU-10 inflators for Japan.
NORTH KOREA fired two presumed short-range ballistic missiles toward the East Sea
from Sonchon, according to South Korea’s Joint Chiefs of Staff, Korea Times reports.
The missiles flew 410 km (255 mi.) and reached max. altitude of 50 km.
LUKOS LLC has $245m U.S. Navy contract for logistics support, equipment-related
and other services in support of Naval Special Warfare Command.
U.S. NAVY F/A-18E Super Hornet performed the 1,000th recovery of a fixed-wing
aircraft on the USS Gerald R. Ford (CVN 78) flight deck using Advanced Arresting Gear
March 19.
BUSINESS
French Unions Have Mixed Feelings About Airbus
Resuming Production
THIERRY DUBOIS, thierry.dubois@aviationweek.com
LYON, France—French unions have reacted negatively—or, at best, cautiously—to Air-
bus’ March 23 announcement it is partially resuming production in the country, amidst
an unprecedented crisis caused by the COVID-19 pandemic.
“We do not oppose the resumption in some precisely identified sectors, as long as
the required health protection measures are taken,” said Francoise Vallin, coordinator
of the CFE-CGC executive employees union for Airbus. “Our representatives are on site,
ensuring they are implemented.”
Some actions are relatively easy to execute—tools and workstations are regularly
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UNIONS, From P. 1
disinfected. But some are trickier to put into practice, such as
keeping 1 m (3.3 ft.) away one from another. Moreover, a maxi-
mum five employees can interact in the same place, Vallin said.
Vallin said the March 23 resumption in production is a test,
and the practicality and effectiveness of the measures will be
assessed at the end of the workday. The result will possibly
call for stronger action, such as the use of individual protective
equipment, she suggested.
Those sectors where activity has partially restarted include
deliveries. “Some carriers have accepted to take aircraft this
week,” Vallin said. The others relate to aircraft testing, compo-
nent transportation, pilot training (in support on online learning)
and IT (in support of telecommuting), according to Vallin.
Some categories of personnel can neither work from home
nor come to work because their job does not belong to one
of the identified sectors. An agreement was signed late last
week between the company and unions for those employees to
receive full payment this week.
Another union, FO, insists that essential activity—defined as
vital for Airbus’ production facilities—should be maintained by
as few employees as possible.
“We will not accept seeing an inappropriate number of workers
coming back into our offices and workshops,” Dominique Del-
bouis, FO’s Airbus coordinator, wrote in a letter to Donald Fraty,
HR director for Airbus’ facilities in France. Employees should
work only if they want to, he added. Health protection guidelines,
such as safety distances and the provision of individual equip-
ment, should be followed.
Delbouis referred to an internal monitoring scheme in which
one employee ensures rules are implemented for a group of 25.
PROGRAMS
First USMC F-35C Squadron Wins
‘Safe For Flight’ Certification
LEE HUDSON, lee.hudson@aviationweek.com
The first U.S. Marine Corps F-35C Joint Strike Fighter squadron
has received its “safe for flight” operations certification.
Marine Fighter Attack Squadron (VMFA) 314 became certified
on March 20 after working with the U.S. Navy’s Strike Fighter
Squadron (125) for five months to train pilots and maintainers
on the new aircraft.
VMFA-314 transitioned to the Lockheed Martin F-35C from
the Boeing F/A-18 Hornet. The squadron is based at Marine
Corps Air Station Miramar in California, but was training with
VFA-125 at Naval Air Station Lemoore, also in California.
2
March 24, 2020
“Given the exceptional circumstances, I would like every [union
and workers’ representative] to be part of that scheme,” Delbouis
said.
Meanwhile, the CFDT union disapproves the move. “It is
premature,” said Michel Pierre, the CFDT’s secretary for Airbus
Commercial Aircraft. “We have yet to understand which way the
epidemic’s statistics are going and we have no visibility on how
hospitals in Toulouse, Nantes and other Airbus cities will be
congested.”
Telecommuting has proved effective for most of Airbus’ vital
functions, according to Pierre. Therefore, “we do not see why
Airbus is stubbornly wanting to resume production this week,”
he said. The risk is seen as high, for an uncertain benefit. “This
is not participating in the counter-epidemic effort,” Pierre said.
Meanwhile, few customers will take aircraft in the near future, he
emphasized.
“We could have suspended production for one or two weeks
without creating any problem—look at what we do every sum-
mer,” he said.
The CGT union is in agreement and even more vocal. Except
for a few missions (such as satellite operations) and site main-
tenance operations, it opposes the resumption of non-essential
activity in France. “We do not see how stopping production for
two or three weeks will harm,” said Michel Molesin, CGT’s coor-
dinator for Airbus.
“Why should we manufacture aircraft while airlines are going
through tough times?” he asked rhetorically. Molesin would
rather avoid having hundreds of workers meet and propagate
the virus. “My colleagues are scared, and I understand them,”
Molesin said.
The Marine Corps squadron’s commanding officer, Lt. Col.
Cedar Hinton, landed the first F-35C at Miramar Jan. 21, but
VMFA-314 was still under VFA-125 supervision.
“The achievement of this certification represents years of hard
work and detailed coordination across the entire USMC and
Naval Aviation Enterprise,” Hinton said in a statement.
Safe for flight operations means the squadron is manned with
qualified pilots and maintenance personnel to implement safety
programs and support fleet operations.
VMFA-314 is the second F-35C squadron to reach safe for
flight status. The Navy’s VFA-147 achieved the milestone in De-
cember 2018. The plan is for VFA-147 to deploy on the USS Carl
Vinson (CVN 70) next year, and VMFA-314 will deploy shortly
after on another, unnamed carrier.
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FUNDING & POLICY
Pentagon Boosts Up-Front Payments
To Defense Companies
JEN DIMASCIO, jen.dimascio@aviationweek.com
STEVE TRIMBLE, steve.trimble@aviationweek.com
In response to the COVID-19 pandemic, the Pentagon is increas-
ing the amount of up-front payments to contractors.
It will pay up to 90% of billed work immediately for large contrac-
tors and 95% for small businesses, according to a March 20 memo
from the office of the Under Secretary of Defense for Acquisition
and Logistics. Previously, the progress payment rate for large busi-
nesses was 80%, while small businesses would receive 90% of the
amount of a contract. The government would hold the remaining
amount in reserve to encourage contractors to perform well – in
the same way a homeowner might hold back a portion of kitchen
renovation costs until the job is complete.
BUSINESS
Boeing Suspends Dividends To
Counter COVID-19 Pandemic Impact
GUY NORRIS, guy.norris@aviationweek.com
LOS ANGELES—As part of efforts to sustain operations and
increase its chances of receiving a state bailout to offset the
devastating impact of the COVID-19 pandemic, Boeing is sus-
pending its share dividend and pausing share repurchasing until
further notice.
As part of the move, announced by the company late March 20,
Boeing CEO Dave Calhoun and Board Chairman Larry Kellner will
also forgo all pay until the end of 2020. The company, which has
seen its share price plummet over the last month from $330 to just
$95 amid the fallout from the coronavirus crisis, says it is “drawing
on all of its resources to sustain operations, support its workforce
and customers, and maintain supply chain continuity.”
The about-face on the company’s long-held policy of hefty
dividends and share repurchases also comes just days after it ap-
pealed to President Donald Trump’s administration for $60 billion
in U.S. government aid to sustain the aerospace industry. In the
request Boeing said the funds “would support the health of the
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The memo, signed by Kim Herrington, acting principal director
of defense pricing and contracting, says it will remain in effect until
rescinded.
As the coronavirus pandemic has spread, the aerospace and
defense industry has worried about the impact to the supply chain
and is seeking ways to increase liquidity. This is one of a number
of ways to add to the industry’s cash flow, and is a major victory for
Boeing, Lockheed Martin, Northrop Grumman and other primes.
In a Tweet, Lockheed Martin, said, “We applaud @DeptofDefense
for leading by example during COVID-19 crisis with enhanced prog-
ress payments targeted for small businesses. Lockheed Martin will
do the same by flowing these funds to our supply chain partners.”
The development is a marked change from just over two years
ago, when Shay Assad, then the Pentagon’s procurement and
pricing policy chief, sought to restrict progress payments from the
80% rate to 50%.
broader aviation industry, because much of any liquidity support
to Boeing will be used for payments to suppliers to maintain the
health of the supply chain.”
The company’s latest moves also follow the resignation from the
Boeing board last week of Nikki Haley, the former Trump adminis-
tration UN ambassador, in protest over the bailout bid. Both Haley’s
resignation and the efforts to change course over the dividend and
share buyback strategy have been seen by analysts as vital pre-req-
uisites to any bailout package.
Boeing’s urgent call for aid, and specifically for additional liquidity,
also comes in the midst of the continuing crisis of the 737MAX
grounding and production halt. The growing delays to re-certifica-
tion of the aircraft and the termination of deliveries in 2019 signifi-
cantly impacted the company’s cash flow, forcing it to consume a
$13.8 billion draw-down loan.
The market’s subsequent reaction to Boeing’s predicament
raised the company’s debt and lowered its credit rating.
This cumulative situation, added to the onset of the COVID-19
pandemic and its impact on air travel, triggered the on-going col-
lapse in the company’s share price and the call earlier this week for
state aid.
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BUSINESS
CAE Lays Off Workers,
Closes Training Centers
MICHAEL BRUNO, michael.bruno@aviationweek.com
Major aviation training and simulator provider CAE said it is
temporarily laying off at least 465 staff starting March 27 and
cutting staff manager salaries in the wake of the COVID-19
crisis.
Also, three training centers around the world have been tem-
porarily closed and more closings could occur.
The Montreal-based company also wrote Canadian Prime
Minister Justin Trudeau on March 23 asking for government aid.
CAE managers announced the moves to the outside world
during an investor briefing teleconference hosted by RBC Capital
Markets. Centers in Peru, Brussels, Belgium, and Milan, Italy, are
shuttered, but none in North America have been affected yet.
But the Dubai center is likely to close soon. More than 50% of
the company’s annual revenue comes from training.
Marc Parent, CAE CEO, said the executive team will take a
salary cut of half while every manager will take at least a 10%
reduction. “We’re not being Pollyanna here. We’re expecting a
very tough period ahead,” Parent said. “Nothing is off the table.”
CAE CFO Sonya Branco said there would be “very minimal”
OPERATIONS
Soyuz Lifts Off To Add 34 Satellites
To OneWeb Network
IRENE KLOTZ, irene.klotz@aviationweek.com
A Russian Soyuz rocket lifted off from Baikonur Cosmodrome
in Kazakhstan on March 21 to deliver another 34 satellites
into orbit for OneWeb, which is building a 648-member con-
stellation to deliver high-speed, low-latency internet services
worldwide.
The Soyuz-2.1b booster lifted off at 1:06 p.m. EDT. The launch,
contracted through Arianespace and overseen by its affiliate
Starsem, was conducted despite travel restrictions in Kazakh-
stan, which has closed its borders due to the pandemic corona-
virus COVID-19 disease. The launch was the third for OneWeb,
which now has 74 spacecraft in orbit. Before the pandemic, the
company was planning for monthly launch campaigns through
2021 to build an initial constellation of 648 spacecraft in
near-polar orbits 745 mi. (1,200 km) above Earth.
OneWeb did not immediately respond to questions about
how global travel restrictions and public health safety measures
might impact its future manufacturing and launch plans.
The satellites are built in Florida, which so far has not ordered
4
March 24, 2020
capital expenditures spent in the “foreseeable future,” and the
company was slashing research and development.
An RBC host on the teleconference said they were “very ag-
gressive moves early on.”
CAE executives claimed they are entering the novel coronavi-
rus crisis from a position of strength. “We’re going into this with
a sound balance sheet,” CAE CFO Sonya Branco said. The goal
is to maintain investor-grade ratings. CAE has “ample liquidity to
weather the storm,” she added.
Parent noted that CAE has not received any order cancella-
tions. “We don’t expect them,” he said. For an air operator to
cancel a flight simulator is quite rare. “They need them. They
might need them later,” he added.
Indeed, just last week, CAE received two full-flight simulator
orders from Chinese customers and another in Singapore.
Meanwhile, training centers in Asia are opening up again. Sin-
gapore is opened. Kuala Lumpur is back open. “If you’re flying
you have to train—depending on the country—every 6-9 months,”
Parent explained. “We still foresee similar growth in air travel.”
At the same time, the company is looking to position itself
to take advantage of a changed landscape once the crisis has
passed. “I think people come out of this generational event look-
ing at life differently,” Parent said.
businesses to close offices and factories in an attempt to curb
the spread of COVID-19. As of mid-day March 21, Florida was
tracking 647 active cases of the disease and had reported 12
deaths, according to Johns Hopkins University, which is tracking
the pandemic’s spread at systems.jhu.edu.
Governors in California, Connecticut, Illinois, New Jersey and
New York have now advised residents to stay at home indefinite-
ly, which puts about 25% of Americans under so-called “shelter
in place” restrictions.
At its last launch on Feb. 6, OneWeb said it planned for 10
launches this year, roughly one per month, with each mission
delivering 32-36 satellites into orbit. OneWeb in 2015 signed a
contract with Arianespace that includes up to 26 Soyuz launch-
es from Baikonur, the new Vostochny Cosmodrome in Russia’s
far east and Europe’s Guiana Space Center in Kourou, French
Guiana. The company also has launch contracts for multi-sat-
ellite missions aboard Arianespace’s Ariane 6 and Blue Origin’s
New Glenn rockets.
OneWeb said it needs about 588 satellites for full-service
and may add at least 60 more spacecraft to serve as spares.
Depending on the pace of launches, limited service could begin
before the end of this year.

Staff
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awin.aviationweek.com/aerospacedaily March 24, 2020
BUSINESS
General Dynamics Warns Stakeholders
About Coronavirus
MICHAEL BRUNO, michael.bruno@aviationweek.com
General Dynamics has become the latest aerospace and defense giant to warn investors that
the COVID-19 crisis is a risk to the company.
In a March 23 filing with the U.S. Securities and Exchange Commission, the Falls Church,
Virginia-based company added the novel coronavirus to its set of risk factors. Like Northrop
Grumman did last week, General Dynamics warned about the effect of having to shut down
manufacturing operations and other ways the crisis could upend its outlook.
“The recent outbreak of COVID-19, and any other outbreaks of contagious diseases or
other adverse public health developments in countries where we operate or our customers
are located, could have a negative effect on our business, results of operations and financial
condition,” General Dynamics said. “These effects could include disruptions or restrictions on
our employees’ ability to work effectively, as well as temporary closures of our facilities or the
facilities of our customers or suppliers. “This could affect our performance on our contracts,”
General Dynamics continued. “Resulting cost increases may not be fully recoverable or ade-
quately covered by insurance, which could impact our profitability. In addition, the outbreak of
COVID-19 has resulted in a widespread health crisis that is adversely affecting the economies
and financial markets of many countries, which could result in an economic downturn that
may negatively affect demand for our products.”
For now, the company said the virus’ effect on business conditions remains “highly uncer-
tain and will depend on future developments.” Variables include the spread of the virus and its
severity, as well as government reactions.
The coronavirus is likely to become a boilerplate risk factor across the aerospace and
defense industry. While commercial aviation and MRO are taking immediate hits from the
collapse of air travel, the defense, space, business aviation and other sectors are facing threats
from factory shutdowns and—perhaps more importantly—the fact that so many smaller sup-
pliers are the same no matter the end-market user. If they shutter operations or worse, go out
of business, supply chains will be disrupted.
Meanwhile, and also like Northrop and Boeing, General Dynamics has moved to secure
more debt-based financing. In a separate regulatory filing March 23, General Dynamics issued
a preliminary prospectus for selling a to-be-determined amount of new senior unsecured notes.
Proceeds will go to paying off $2.5 billion in debt due May 11, as well as paying off some short-
term commercial paper debt. The new debt financing did not surprise credit rating analysts,
who knew the May debt was coming due. Moody’s Investors Service ranked the new debt A2,
still among its highest ratings, but the agency has a negative outlook on General Dynamics
debt position altogether. “The negative outlook reflects the potential for GD to sustain its cur-
rent elevated financial leverage for a longer time than Moody’s had expected at the time of the
company’s debt-funded acquisition of CSRA in May 2018,” Moody’s said March 23. Commer-
cial-paper financing was supposed to be able to meet the May debt due, and free cash flow
was expected to be higher than it has been to help cut down overall debt.
“The negative outlook also captures the potential of some modest pressure on operating
cash flow relative to the company’s expectations because of the potential for some slack in
demand for Gulfstream jets given the sharp fall in global financial markets from the fallout of
the coronavirus,” Moody’s said. “There may also be crowding out of defense spending in up-
coming years because of the impact on future U.S. federal budgets from the financial support
the government is likely to provide broadly across the U.S. economy.”
5
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BUSINESS
Italian Aerospace Workers
Strike Over COVID-19 Concerns
TONY OSBORNE, tony.osborne@aviationweek.com
Workers at Italian aerospace companies Avio Aero, Leonardo
and MBDA have gone on strike over concerns about continuing
to work despite the COVID-19 outbreak.
According to the Italian ANSA media agency, workers at Avio
Aero plants in Rivalta and Borgaretto plants near Turin, and
Leonardo’s facilities in the city went on strike on March 23 over
concerns about the high risk of catching the novel coronavirus.
Italy has the highest number of cases of the virus outside China,
with much of the outbreak focused in the North of the country,
including the Lombardy region, which has the country’s financial
center Milan as its capital.
The Italian government is taking steps to further lock down
the region to prevent the spread of the illness.
But Prime Ministerial decrees issued on March 22 conclud-
ed that the aerospace and defense industry is essential to the
national economy and will continue. But the employees argue
PROGRAMS
NASA Exploration Ground Systems
Making Progress, Audit Shows
IRENE KLOTZ, irene.klotz@aviationweek.com
CAPE CANAVERAL—NASA’s Exploration Ground Systems (EGS)
program, which provides ground processing and launch facilities
for the integrated Space Launch System (SLS) and Orion space-
craft, is in better shape now than when the program was last
audited in 2016, but the agency needs to improve cross-program
integration and testing, the NASA Office of Inspector General
(OIG) said March 19.
Four years ago, the OIG analyzed NASA’s progress on the Space-
port Command and Control System—the software that operates
ground support equipment such as pumps, motors and valves, as
well as monitors the SLS and Orion during launch preparation. The
audit found that the program at $207 million was 77% over budget
and running 14 months behind schedule.
In a new audit released March 19, the OIG analyzed progress
on the EGS Ground and Flight Application Software (GFAS), which
will interface with flight systems and ground crews at Kennedy
Space Center. “We found the EGS program has taken appropri-
ate steps to manage GFAS by implementing a flexible software
development process and exercising appropriate oversight and
risk management,” the OIG wrote. “However, we found that chal-
6
March 24, 2020
otherwise, saying that such work is only continuing for “econom-
ic reasons.”
Union representatives from the CGIL, CISL and UIL workers’
unions have jointly written to the government for meetings.
The letter questions the “substantial list of additional indus-
trial and commercial activities” that are continuing despite the
lockdown. The representatives question how essential some of
the activities are.
In a series of statements, Leonardo said it was reaffirming a
guarantee to workers to maintain “the highest safety standards
by fully respecting the prescriptions established by the gov-
ernment and also the further measures agreed with the trade
unions through the protocol recently signed.”
The company notes, however, that the aerospace and defense
sector is “highly strategic.
“Our aim is to ensure the production continuity but without any
compromise on safety and health,” the company said. Leonardo
also said it has activated what it calls “extraordinary insurance
coverage” for possible COVID-19 infections among its Italy-based
staff that will provide coverage for hospitalization costs.
lenges from simultaneous hardware and software development
efforts resulted in revisions to GFAS and contributed to increased
development costs.”
As of October 2019 GFAS development cost had grown to about
$51 million—$14 million more than originally planned, the OIG
found. The GFAS component of EGS has a current estimated value
of about $60 million through September 2020. GFAS development
is managed collaboratively by NASA and prime EGS contractor Ja-
cobs. Part of the delay was caused by NASA and Lockheed Martin,
which is developing the Orion capsule, taking two years to “resolve
information technology security issues that delayed the GFAS team
from obtaining remote access to critical test equipment at the
contractor’s laboratory,” the report said.
“GFAS software development remains on the critical path to sup-
port Artemis 1, and is a high-risk component of the EGS program,”
the OIG noted.
NASA is in the process of assessing a new launch date for the
first SLS-Orion mission, known as Artemis 1. It was previously
targeted for November 2020.
NASA plans to follow the uncrewed Artemis 1 lunar flyby
mission with Artemis 2, a crewed flight test, by October 2022. The
OIG said in a March 10 audit that NASA spending on SLS, Orion
and EGS will top $50 billion by 2024, the targeted date for a crewed
landing on the lunar surface.
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BUSINESS
GE Aviation Cuts Workers,
Prepares For Market Falloff
MICHAEL BRUNO, michael.bruno@aviationweek.com
GE Aviation, the leading division within General Electric, is cutting
10% of its U.S. workforce as it anticipates a steep falloff in main-
tenance, repair and overhaul (MRO) work for three months, and it
will continue to let go outsourced workers in the wake of the novel
coronavirus, the company’s head executive said March 23.
The multi-industrial company will also prolong a hiring freeze put
in place in recent weeks, and reconfirmed other measures taken
such as canceling salaried merit increases and a “dramatic” cut of
“all nonessential spending.”
David Joyce, vice chairman of GE and president and CEO of
GE Aviation, will forgo half of his cash salary starting April 1, and
GE chief executive Larry Culp said he would also forego his salary.
“The aviation industry is feeling the impact of this global pandemic
most acutely,” the company said in a prepared statement. “The rap-
id contraction of air travel has resulted in a significant reduction in
demand as commercial airlines suspend routes and ground large
percentages of their fleets. As a result, GE Aviation is announcing
several steps that, while painful, preserve our ability to adapt as the
environment continues to evolve.”
The announcement marks a reversal of the company’s outlook
from late February when top executives confidently told Wall Street
OPERATIONS
Helos Evacuating COVID-19
Patients From Oil Platforms
TONY OSBORNE, tony.osborne@aviationweek.com
Oil-and-gas helicopter operator Bristow Group has converted
three of its helicopters to perform evacuation missions for oil
workers with suspected cases of COVID-19.
The company says it has performed three flights carrying pas-
sengers with suspected COVID-19 from North Sea platforms since
March 18 using the adapted Sikorsky S-92.
Bristow says each of the aircraft has undergone modifications
to ensure the flight crew is separated from the patient and an
onboard medic traveling with the patient.
The three helicopters previously served in the search-and-rescue
role and have a different seating configuration than crew change
helicopters that normally operate to the oil rigs. Bristow says the
seating arrangements allow for appropriate separation between
those onboard.
Protective curtains are used to separate the cockpit from the
7
March 24, 2020
and others they expected the COVID-19 illness to be just a blip
for the aerospace industry. At the time, they said it was not worth
laying off staff because they wanted to be positioned for a recovery.
“With regard to our financial position, our company is sound. How-
ever, what we don’t know about the magnitude and duration of this
pandemic still outweighs what we do know,” Culp said.
Culp also noted that while GE supports efforts by the U.S. gov-
ernment to preserve the aviation industry and protect the broader
economy, “we have not sought any provisions in stimulus bills that
would benefit GE exclusively.”
It was not immediately clear how closely workforce cuts were
tied to MRO business expectations or whether GE Aviation would
make cuts elsewhere in its engine manufacturing businesses, for
instance. In its statement, GE said: “There will be a temporary lack
of work impacting approximately 50% of its U.S. maintenance,
repair and overhaul employees for 90 days.”
Both GE and financial analysts warn, however, that the coronavi-
rus crisis is affecting forecasts across the company. For example,
GE Healthcare is taking a hit as business falls for certain medical
equipment used in elective procedures that are being postponed or
canceled as hospitals try to free up space for virus patients.
Other risks loom. “Prepayments received for engines delivered
to Boeing remain a watch item,” UBS analysts noted in a March 23
note to investor clients. “Investors have also been concerned about
interest rate movements.”
passenger area and airflow systems, while specific entrance and
exit points are provided for each of the flight crew, the paramedic
and passenger to further ensure required distance is maintained.
Each aircraft undergoes a full decontamination process after
every flight.
The introduction of the flights emerged after a series of out-
breaks on offshore platforms. Some energy companies have begun
reducing their offshore activities, reflecting concerns about coro-
navirus but also plummeting oil prices caused by the pandemic. Oil
price declines already have caused a crisis in the offshore helicop-
ter industry, and COVID-19 looks set to prolong it.
Matt Rhodes, director for UK and Turkmenistan Oil-and-gas oper-
ations at Bristow Helicopters, said the service had been established
with approvals from the UK regulator, the Civil Aviation Authority; Oil
and Gas UK, an industry trade association; and with energy compa-
nies and health authorities.
“We are now exploring further options for other parts of the UK,
and other industries, as the national response to the coronavirus
outbreak gathers pace,” Rhodes said.
 awin.aviationweek.com/aerospacedaily
PROGRAMS
ADD, Hanwha Close To Testing
KF-X Radar Prototype
KIM MINSEOK, themaxium@gmail.com
BRADLEY PERRETT, perrett@aviationweek.com
SEOUL, BEIJING—Radar development for the Korea Aerospace
Industries (KAI) KF-X is moving toward production of a pro-
totype, following evaluation of a technology demonstrator in
Israel and South Korea.
The program, led by the government’s Agency for Defense
Development (ADD), is planning to ground test the produc-
tion-representative prototype by the end of May, manufacturing
subcontractor Hanwha said.
Since Elta worked on the technology-demonstration phase,
that company may also be supporting full-scale development,
which appears to have begun in May 2019 when the intended
production sensor passed its critical design review. Hanwha is
also contributing to development.
A terrain-following mode, formerly a notable omission from
the sensor’s capabilities, is reportedly being added. No name for
the radar has been published.
Radar development is 50% complete, Hanwha researcher
Hong Yoon-Sung told the Chosun Ilbo newspaper, adding that
the prototype would be tested within months.
A prototype radar is due to be fitted in a KF-X for flight tests
in 2023. Development is scheduled for completion in 2026, the
year in which deliveries of the fighter are supposed to begin.
Software for air-to-air and air-to-surface modes is due to be
developed by October 2021.
Design details
The design includes an active electronically scanned array
(AESA) and, according to a government research institute state-
ment in 2014, gallium-nitride components. In several countries
the latter are superseding gallium-arsenide technology, formerly
the standard for AESAs. The demonstrator also uses gallium-ni-
tride technology, according to the South Korean news outlet
Today Defense.
Cooling power provided to the demonstrator radar is 7.7 kW,
Hanwha said.
This is a hint at its maximum average output power, which is
related to cooling power according to the overall efficiency of
the system—though guessing that efficiency requires several
difficult assumptions.
Analyzing the gallium-arsenide Northrop Grumman APG-83
radar, Hellenic Air Force researchers last year worked on the
8
March 24, 2020
basis of 5.6 kW cooling and found an average antenna output
of up to 1 kW. So the South Korean demonstrator should exceed
that figure.
Hanwha said in November that evaluation of demonstrator
hardware had been completed. This leaves open the possibility
that demonstrator software is still being worked on.
The demonstrator radar was installed in an Elta-owned Boeing
737 testbed and flew 10 times in Israel and six times in South
Korea, the ADD said in October.
Elta was chosen in 2017 to support the demonstration
phase. The demonstrator includes an antenna and software
from the ADD and Hanwha and signal processors and soft-
ware from Elta.
But South Korean officials and industry leaders have a strong
tendency to play up the role of indigenous engineering work and
downplay the extent of foreign support. It would not be surpris-
ing, therefore, if Elta helped in design or at least refinement of
the demonstrator. Similarly, the Israeli company may be quietly
helping, or standing by to help, with development of the produc-
tion sensor.
South Korea has not developed a fighter radar of any sort be-
fore, let alone one with an AESA and gallium-nitride technology.
New function
In December the ADD announced a contract with Hanwha to
add the terrain-following function. Pictures and models of the
KF-X have previously shown it with a navigation pod, like the U.S.
AAQ-13, implying that the radar lacked terrain following, which is
used for low-altitude flight.
Using the pod brought significant disadvantages: loading the
aircraft with additional weight and drag; and transmitting at a
higher, and therefore more detectable, power level than would
be necessary if the much larger nose array were used.
A video presentation made by Hanwha shows the demon-
strator radar was tested in three air-to-air modes: all-aspect
search and track, nose aspect search and track, and air combat
maneuvering.
Tested air-to-surface modes were stationary and moving
target indication, synthetic aperture, ranging and air-to-sea.
The demonstrator also has no known name.
In winning KF-X radar work, Hanwha beat LIG Nex1, which
had done preliminary development at its own expense and had
worked on fitting foreign radars to aircraft of the Republic of
Korea Air Force.
Despite the setback, LIG Nex1 is persisting with developing a
radar at company expense for other aircraft.
 awin.aviationweek.com/aerospacedaily
OPERATIONS
KSC Logs First COVID-19
Case, But Dodges Closure
IRENE KLOTZ, irene.klotz@aviationweek.com
CAPE CANAVERAL—NASA’s Kennedy Space Center in Florida
remained open on March 23 to personnel working on Mars 2020,
Commercial Crew and Cargo and other mission-critical pro-
grams despite its first confirmed case of COVID-19.
The contractor, who works for Jacobs, which is overseeing
the Artemis program’s Exploration Ground Systems projects,
had been off-site for more than 10 days, NASA spokeswoman
Tracy Young wrote in an email to Aerospace DAILY. “Based on the
circumstances and elapsed time since the employee was on site,
we believe it was acquired after they had started teleworking and
there is no additional risk at the center from this person,” Young
said.
KSC was informed of the contactor’s COVID-19 diagnosis on
TECHNOLOGY
Structural Batteries Seen Reducing
Electric Aircraft Weight
GRAHAM WARWICK, graham.warwick@aviationweek.com
Embraer is working with Stanford University and the U.S. Energy
Department on the development of multifunction structures that
can store energy and carry loads, potentially reducing the weight
of battery packs in electric aircraft.
The Stanford-led Multifunction Energy-Storage Composites
(MESC) project is one of the electric-propulsion projects under-
way within Embraer, Gary Spulak, head of the Brazilian manufac-
turer’s U.S. division, told the U.S. Chamber of Commerce Aviation
Summit in Washington last week.
Embraer also is working with Brazilian electric machinery
manufacturer WEG to convert an EMB-203 Ipanema agricultural
aircraft to an electric-propulsion demonstrator. The aircraft is
planned to fly this year. In addition, U.S. innovation unit EmbraerX
is developing an electric vertical-takeoff-and-landing air taxi.
TECHNOLOGY
Fit Checks Begin For Russian
Hybrid-Electric Propulsion Demo
GRAHAM WARWICK, graham.warwick@aviationweek.com
An electrical turbogenerator has been test fitted on a Yakovlev
Yak-40 flying testbed at a Siberian research institute as part of
a Russian project to demonstrate hybrid-electric propulsion for
short- and medium-haul airliners.
9
March 24, 2020
March 22. “The center remains at Stage 3 of our agency response
framework, with continued mandatory telework. Access to the
center remains restricted to mission-essential personnel only. The
protection and care of the Kennedy workforce, their families and
the entire Kennedy community remains our top priority during this
uncertain time,” Young noted.
Four other NASA facilities—Ames Research Center in Moffett
Field, California; Michoud Assembly Facility outside New Orleans;
Stennis Space Center in southern Mississippi and the Goddard
Institute for Space Studies in New York—are now at Stage 4 of
the agency’s Response Framework, in adherence to local gov-
ernments’ shelter-in-place orders. The facilities are open only to
personnel needed to protect life and critical infrastructure.
On March 23, NASA’s Glenn Research Center in Cleveland be-
came the agency’s fifth facility to shutter due to concerns about
the spread of the novel coronavirus.
In December, Embraer and the Brazilian Air Force signed a
memorandum of understanding to study development of a
hybrid-electric light military transport to replace the EMB-110
Bandeirante utility turboprop.
To add load-bearing capability without sacrificing energy-stor-
age performance, MESCs embed lithium-ion battery materials in
high-strength carbon-fiber composites.
Polymer rivets lock the stack together, improving load transfer
between the cell layers and enabling them to contribute to the
battery’s structural performance. Sensors to monitor real-time
battery charge and structural health are integrated into the multi-
functional battery.
Under the Energy Department project, the Stanford team has
built and tested prototype multifunctional battery I-beams, aiming
for weight savings of up to 30% over conventional designs in
which batteries and structures are separate. The team believes
satellites and unmanned aircraft are likely first markets for multi-
functional batteries.
The trijet Yak-40 is being modified by the Siberian Research
Institute for Aviation (SibNIA) under the federally funded, three-
year Electrolet SU-2020 research program led by CIAM, Russia’s
Central Institute of Aviation Motors. CIAM was selected by the
industry and trade ministry in January to lead the project.
A 500-kW superconducting electric motor developed by
Russian company SuperOx will be installed on the nose of the
FIT CHECKS, P. 10
 awin.aviationweek.com/aerospacedaily
FUNDING & POLICY
Airbus Secures Large Loan, Deals
With Multiple Deferral Requests
JENS FLOTTAU, jens.flottau@aviationweek.com
FRANKFURT­—Airbus is faced with an avalanche of requests
for delivery deferrals and is preparing for substantial produc-
tion cuts as many of its customers struggle with the impact of
COVID-19 on air transport.
The aircraft manufacturer has taken measures to boost liquid-
ity to €30 billion ($32 billion), excluding non-pooled cash, and is
not asking European governments for help.
Airbus CEO Guillaume Faury and CFO Dominik Adam stressed
in calls with reporters and analysts on March 23 that the compa-
ny has a strong balance sheet and “significant liquidity available
to cope with additional cash requirements related to COVID-19.”
The company now has access to a new €15 billion credit fa-
cility that increases available liquidity from the €25 billion as of
the end of 2019 by almost another €5 billion, in spite of the €3.6
billion compliance penalty payment to authorities, €500 million
for the acquisition of Bombardier’s share in the Airbus Canada
partnership and the funding of operations in what is normally
already a low-delivery time of the year.
While Airbus has not requested government help for the com-
pany itself, it is “advocating strong support to the ecosystem,
mainly airlines and the supply chain when they are in difficulties.”
In the context of a potential no-deal Brexit, Airbus had already
taken measures to create a buffer on components and other
parts to keep systems running in case of any disruptions. Those
measures are now helping it to cope with any COVID-19-related
delays.
To protect its financial position, Airbus also is withdrawing
the previously announced dividend proposal of €1.8 per share,
which would have led to a €1.4 billion cash outflow later this
year. The company is suspending voluntary pension top-ups and
also is cutting operational costs where possible.
Production that was temporarily suspended in Spain and
France for several days has resumed partially as of March 23
after new health protection and distancing measures were put
FIT CHECKS, From P. 9
Yak-40, driving a five-blade propeller, and one of the aircraft’s
three turbofans will be replaced by the generator developed by
Ufa State Aviation Technical University.
The motor developed by SuperOx uses second-generation,
high-temperature superconducting tapes, cooled by liquid
nitrogen, to reduce size and weight and increase power density
10
March 24, 2020
in place. Faury pointed to the Tianjin final assembly line in China,
which went through a similar exercise earlier in February and is
now back at its planned production rate.
Faury made clear that “the widebody market will be signifi-
cantly impacted.” The industry already faced oversupply in 2018
and 2019, therefore production rates were adapted. “We are
very likely to see strong oversupply again and we will have to
take decisions,” he said. However, Airbus does not plan to make
any hard decisions to discontinue products altogether. “The
weaker ones might emerge stronger,” Faury said, referring to the
A330neo.
Several of Airbus’ key customers are in financial distress
and in no position to take additional aircraft. Faury confirmed
that many airlines are asking for deferrals while some are still
prepared to take delivery of aircraft. However, the logistics of
physically taking delivery are becoming more and more difficult
with travel bans and quarantine requirements in place in all key
countries. “We managed to keep a certain flow of deliveries,
but it is becoming increasingly difficult,” Faury said. Airbus is
therefore looking at possibilities to store finished aircraft until
customers can take delivery of them.
Airbus sees itself better protected on the narrowbody side,
where it benefits from a large backlog and overbooking. Also,
ironically, past difficulties help now as the major production de-
lays--particularly in the A321neo program--have led to a backlog of
aircraft that should have been delivered a long time ago and are
now part of the overbooking equation over the next few months.
“There is large uncertainty in the short term,” Faury said. “We are
not trying to believe that things will be as they were before.”
While airlines are hurting in particular, lessors “play a very
important role at the moment” as at least some of the larger
ones are still taking delivery of aircraft where possible. Financ-
ing provided by export credit agencies also could become a
more important tool in supporting deliveries, Faury said. While
the recovery has started in China, other countries are not yet at
that point, he noted, and “it is difficult to assess what the low
point is… We don’t believe all airlines will be bankrupt but it is not
unlikely that the size and shape of the business will be different.”
over a conventional electric motor. The motor completed ground
bench tests at CIAM in December.
Development of the superconducting motor has been funded
by the Russian Foundation for Advanced Research Projects,
which was founded in 2012 and is modeled on the U.S. Defense
Advanced Research Projects Agency (DARPA).
 awin.aviationweek.com/aerospacedaily
Contracts
Selected U.S. Military Contracts For The Week Of March 16 -
March 20, 2020
March 16
U.S. NAVY
United Technologies Corp., Pratt and Whitney Engines, East Hartford,
Connecticut, has been awarded a $319,792,357 modification (P00018)
to a previously awarded, firm-fixed-price, fixed-price-incentive-fee,
cost-plus-fixed-fee, cost reimbursable contract (N00019-18-C-1021).
This modification exercises an option for the production and delivery
of 20 F135-PW-100 propulsion systems for the Navy, six F135-PW-100
propulsion systems for the Air Force, and six F135-PW-100 propulsion
systems for the government of Japan. The Naval Air Systems Com-
mand, Patuxent River, Maryland, is the contracting activity.
U.S. AIR FORCE
L3 Technologies Inc., Link Training and Simulation Division, Arlington,
Texas, has been awarded a $10,863,740 firm-fixed-price modification
(P00029) to previously awarded task order FA8621-19-F-6251 for
F-16 aircraft simulator training program services. This modification
will provide contractor logistics support to manage, maintain, and
support the F-16 Simulators Training Program to include all training
devices, software, firmware, spares and the Training System Support
Center. Air Force Life Cycle Management Center, Wright-Patterson
AFB, Ohio, is the contracting activity (FA8621-19-F-6251).
March 17
U.S. NAVY
DynCorp International LLC, Fort Worth, has been awarded a
$104,085,696 modification (P00050) to a previously awarded firm-
fixed-price, cost-plus-fixed-fee and cost reimbursable contract
(N00421-17-C-0033). This modification exercises an option to pro-
vide maintenance and logistics support on all aircraft and support
equipment for which the Naval Test Wing Atlantic has maintenance
responsibility. The Naval Air Warfare Center Aircraft Division, Patux-
ent River, Maryland, is the contracting activity.
U.S. AIR FORCE
The Charles Stark Draper Laboratory Inc., Cambridge, Massachu-
setts, has been awarded a $45,000,000 indefinite-delivery, indefi-
nite-quantity contract for the Quicksilver Device prototype. This
contract provides for the design, build, and test of an operational
Quicksilver Device prototype. The Air Force Life Cycle Manage-
ment Center, Wright-Patterson AFB, Ohio, is the contracting activity
(FA8684-20-D-4000). (Awarded March 16, 2020)
March 18
U.S. NAVY
Northrop Grumman Systems Corp., Orlando, Florida, has been
awarded a $48,235,113 single award, indefinite-delivery/indefi-
11
March 24, 2020
nite-quantity contract (N65236-20-D-8012) with provisions for
cost-plus, fixed-fee and firm-fixed-price task/delivery orders. This
contract is for the procurement of Mobile User Objective System
(MUOS) to legacy Ultra High Frequency (UHF) Satellite Commu-
nications Gateway Component systems and services. These sys-
tems support interoperability from tactical-to-tactical (point-to-
point, point-to-group/net, group-to-net) satellite communications
between MUOS and legacy UHF satellite communication users. In
addition, the required services include Satellite Communication
Gateway Component Suite B interface development, technical
refresh enhancements, training, documentation updates, cyber-
security services, preinstallation test and checkout, implemen-
tation/installation and sustainment. Naval Information Warfare
Center Atlantic, Charleston, South Carolina, is the contracting
activity.
Teledyne Defense Electronics LLC, doing business as Teledyne Mi-
crowave Solutions, Rancho Cordova, California, has been awarded
a $34,963,200 firm-fixed-price requirements contract for the repair
of traveling wave tubes (model 10 kW) in support of the Advanced
Electronic Guidance and Instrumentation System/Combat System.
Naval Supply Systems Command Weapon Systems Support, Me-
chanicsburg, Pennsylvania, is the contracting activity (N00104-20-
D-V001).
March 19
U.S. NAVY
Lockheed Martin Space, Titusville, Florida, has been awarded a
$601,332,075 fixed-price-incentive, cost-plus-incentive-fee and
cost-plus-fixed-fee modification (P00005) to exercise options
under a previously awarded and announced contract N00030-
19-C-0100 for the submarine-launched ballistic missile (model) Tri-
dent II D5 production and deployed systems support. This contract
was awarded on a sole-source basis under 10 U.S. Code 2304(c)(1)
and was previously synopsized on the Federal Business Opportuni-
ties website. Strategic Systems Programs, Washington, D.C., is the
contracting activity.
U.S. ARMY
Lagan Construction LLC, Woodbridge, Virginia, has been awarded
a $29,716,940 firm-fixed-price contract for the design, build repair
and replacement of runways and overruns. U.S. Army Corps of En-
gineers, Louisville, Kentucky, is the contracting activity (W912QR-
20-C-0010).
March 20
U.S. ARMY
Alliant Techsystems Operations LLC, Plymouth, Minnesota, was
awarded a $104,770,422 modification (P00071) to contract
W15QKN-13-C-0074 for precision guidance kits. U.S. Army Con-
tracting Command, New Jersey, is the contracting agency.