As the world enters an era in which rapidly evolving technology will determine how wars are fought and won, Boeing wants to focus in assisting militaries prepare for the present and future threat environment by addressing capability gaps and expanding...
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As the world enters an era in which rapidly evolving technology will determine how wars are fought and won, Boeing wants to focus in assisting militaries prepare for the present and future threat environment by addressing capability gaps and expanding its innovative capabilities, says Tim Flood, Senior Director, Europe and Americas Global Business Development.
In an interview, Flood talks about Boeing's presence and partnerships in Europe, the company's focus areas over the next few years, and its industry partnerships in the region.
How much of Boeing’s business comes from Europe? How important is it to you globally?
Boeing has been a part of the European aerospace community for decades, contributing to and benefiting from the region’s tradition of innovation and excellence. We have more than 8,000 direct employees in Europe and Boeing employs over 2,000 people in engineering positions across Europe. Over €15 billion in aircraft components is sourced by Boeing from hundreds of European partners in the last five years. Boeing Research & Technology- European scientists work with over 200 industry partners on advanced research initiatives. The company has committed over US$2B in community investments over the last 10 years.
Our defense, security and services solutions play an integral role in the military, peacekeeping and humanitarian assistance operations of NATO and many European nations and we look forward to supporting them. In addition, strong demand for our products and services in Europe is leading to discussions with militaries and industry partners in the region about how to tap into Boeing’s capabilities, manufacturing, innovation, R&D, partnerships and services expertise. Boeing continues to invest in Europe, opening sites in Germany, Poland and the UK and adding new European high-tech manufacturers to our supply chain. New employment opportunities at Boeing’s state-of-the-art facilities across Europe empower leading scientists, engineers, technicians and experts to reach their full potential.
Can you elaborate on your defense business and partnerships in the region?
Boeing’s defence and space platforms are in service with 25 European partners and include almost all products in our portfolio - CH-47 Chinook, AH-64 Apache, F/A-18, ScanEagle, Wave Glider, KC-135, KC-767 Tanker, AWACS, P-8, WGS, 702HP Satellite, JDAM, SDB and Harpoon. We’re proud of our partnership with SAAB on T-7 and also with Leonardo on MH-139. Twelve Strategic Airlift Capability programme nations have been operating the C-17 Globemaster III at Papa Air Base, Hungary for almost 15 years.
Boeing has closely partnered with NATO and the European defense community for decades and our platforms, solutions and services have played an important role in NATO and European military, peacekeeping and humanitarian assistance operations. We support a strong trans-Atlantic defense technological and industrial base that remains open to robust defense industrial collaboration.
What are your focus areas in the next five years and why?
We’re entering an era in which rapidly evolving technology will determine how wars are fought and won. Boeing’s focus is to assist militaries prepare for the present and future threat environment by addressing capability gaps and expanding our innovative capabilities. We see demand for heavy lift and attack helicopter capabilities. Maritime Domain Awareness will require capabilities that offer the speed, reach, endurance and lethality to neutralize growing martime surface and sub-surface threats. Additionally, the need for a Airborne Battle Management capability is critical to address increasing air incursions. This highlights the necessity for AEW&C capability. Militaries selecting these capabilities will need to consider the importance of interoperability and interchangeability to leverage the total force posture of the NATO alliance and therefore drive to more common fleets.
Boeing’s defense portfolio, including the P-8, E-7, KC-46, AH-64 Apache, CH-47 Chinook and other platforms, is well positioned to address these future needs, and our newly established franchise programs - T-7, MQ-25, MQ-28 - have a long runway ahead. We are expanding our capabilities in key areas such as analytics, autonomy, artificial intelligence, additive and advanced manufacturing, automation, platform connectivity and data-driven services. We also have a significant opportunity to drive operational advantage, efficacy and resiliency for our armed forces by ensuring our forces are as sustainable as possible. That means replacing old aircraft with more efficient options, scaling the development and production of sustainable aviation fuels and leveraging data and digital tools where possible to streamline costs and accelerate learning.
Could you give us an update on the P-8 for Germany and your P-8 offer 8 for Canada’s Multi-Mission Aircraft, and on the E-7? Besides the USAF, we have learnt that Australia, South Korea, Turkey, and the U.K. are considering buying the E-7.
We’re pleased with Germany’s procurement decision of five P-8A Poseidon aircraft. It underscores its confidence in the P-8A’s superior long-range, multi-domain and multi-mission capability. Along with our industry partners ESG and Lufthansa Technik, Boeing is committed to delivering strong economic growth in Germany, including the creation of highly skilled aerospace jobs. We look forward to working with the U.S. and German governments in finalizing this new contract and delivering the first aircraft to Germany in 2024.
We’re also confident that Canada’s Canadian Multi-Mission Aircraft (CMMA) project requirements will be best met by the P-8. The P-8A is the only proven, in-service and in production solution that meets all CMMA requirements plus a P-8 procurement would provide local industrial benefits in the order of CAD $4B and 14,000 direct, indirect, and induced jobs in Canada. Even today, every P-8 contains more than CAD $11M of made in Canada components, so the P-8 program has delivered more than CAD $1.5B of economic benefit to Canada through the production of 160 aircraft.
We’re proud to support many P-8 customers here in Europe. The Royal Norwegian Air Force (RNoAF) has taken delivery of all five P-8A. The Norwegian P-8s are based at Evenes Air Base and have participated in their first winter exercise – and from what we know, the aircraft will be put into operation later this year. They will join a global fleet of 160 P-8 aircraft that Boeing has delivered to global customers, including the United States, Australia, India, United Kingdom, Norway and New Zealand. Deliveries to Germany will take place 2024. Boeing has also delivered the second of six P-8As for Korea to the United States Navy. Boeing is on contract for 128 P-8A Poseidon production aircraft for the U.S. Navy, UK’s Royal Air Force, Royal Norwegian Air Force, Royal New Zealand Air Force, South Korea, Royal Australian Air Force, Indian Navy and Germany.
The E-7 is the only mission-ready solution available to replace E-3 and provide rapid capability growth against evolving threats with NATO. The NATO Support and Procurement Agency (NSPA) has started assessment of industry bids for the replacement of the E-3A AWACS fleet and earlier this year we offered the E-7 AEW&C in response to NATO’s Initial Alliance Future Surveillance and Control (AFSC) Capability request for information. With increasing demand being placed on the aging fleet of E-3As, NATO must move fast to ensure a smooth transition to the next generation AWACS to avoid a gap in this crucial capability. The E-7 has already served as a force multiplier in degraded and contested environments across the Asia-Pacific, Europe and beyond. And with the aircraft in service with Australia, South Korea, Turkey, and soon the United Kingdom, and the United States, it can be integrated in future coalition operations.
Poland has announced its selection of the AH-64Apache and Germany is looking at the CH-47 Chinook. What is the latest on these acquisitions and why should these countries go with the Apache and Chinook?
We’re excited that Poland selected the AH-64E Apache as its new attack helicopter and look forward to the next steps in the process, including the signing of a Letter of Offer and Acceptance.
The current version of the AH-64 Apache is the world’s most capable and versatile attack helicopter, providing Poland with the greatest interoperability with the U.S. Army and NATO nations. It’s the only option that possesses a radar to find and destroy targets, and it offers a host of other unique and distinguishing capabilities for unparalleled lethality and survivability. The Apache represents the best value over its total life cycle considering the additional capabilities not found on competitor aircraft, its USG-supported modernization plan, multi-year contract savings in acquisition and economies of scale in supply chain activities.
We’re honored Germany selected the CH-47F Block II Chinook for its future heavy-lift helicopter requirements. Germany will operate the most affordable, proven and NATO interoperable heavy-lift helicopter. We look forward to working with the U.S. and German governments to finalize this sale under the Foreign Military Sales process. Together with our Chinook Deutschland Industry Team, we are committed to delivering maximum operational availability to the German Bundeswehr for decades to come.
We are positioned to support German configuration requirements at aircraft delivery, to include air-to-air refueling (AAR) as well. Today, the new build CH-47 and MH-47’s aircraft share a common fuselage (the nose, main body and tail section). The AAR system and components are battle tested, proven, off-the-shelf and readily available to support customer requirements. It will only require some non-developmental integration of the AAR kit. It’s a proven and cost-efficient kit that can be easily integrated on to the aircraft.
This is not a developmental program and the Chinook has had AAR capability since 1988.
Germany will be able to use its current infrastructure, making the transition to a Chinook easy and more cost effective over the life of the aircraft. Building on our decades-long partnership with Germany, Boeing has formed a strong German Industry Team that will provide sustainment and maintenance of the Chinook for the next 40-50 years.
How is Boeing partnering with industry in Europe?
As a global aerospace and defense leader, we continue our decades-long commitment to supporting Europe and NATO’s missions through current and new capabilities that lay the foundation for future-proofing the Alliance and doing it through industrial partnerships. We believe that close collaboration between industry and government will empower transformative gains in key areas, ensuring collective security and sustainable resilience.
For almost half a century, Boeing has worked with more than 40 countries around the world to successfully complete industrial engagement programs totaling close to US$55 billion. These programs have delivered significant benefits to these economies and communities by establishing aerospace and defense supply chains and services infrastructure, creating jobs and enabling prosperity. We are doing that in Europe and will continue to build on the enduring legacy we have established so far.
On the Commercial side, what is the worldwide outlook?
Boeing forecasts a global demand for 42,595 new commercial jets by 2042, valued at US$8 trillion. New single-aisle airplanes will account for more than 75% of all new deliveries, up slightly from the 2022 outlook, and totaling more than 32,000 airplanes. New widebody jets will be nearly 20% of deliveries, with more than 7,400 airplanes enabling airlines to open new markets and serve existing routes more efficiently. Air cargo will continue to outpace global trade growth, with carriers requiring 2,800 dedicated freighters. This includes more than 900 new widebodies as well as converted narrow-body and widebody models. Asia-Pacific markets to represent more than 40% of global demand with half of that total in China.
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