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Aviation History
2000
2000 - 1009.PDF
Giants extend reach via Internet EMMA KELLY/LONDON BAE SYSTEMS, Boeing, Lock heed Martin, Raytheon and e-commerce expert Commerce One have formed the aerospace and defence industry's biggest e-com merce initiative. The participants believe the move will "revolutionise the aerospace industry". The partners have signed a memorandum of understanding to form the unnamed venture, with a definitive agreement due early in the second quarter and a launch in mid-year, says Phil Condit, Boeing chairman and chief executive. A new company will be formed by the partners that will own and operate an Internet trading ex change for the industry. The exchange, based on the Commerce One Microsoft-powered Market- Site Portal Solution, is expected to move online the bulk of the part ners'annual procurement outlay of RAMON LOPEZ/FORT WORTH THE US ARMY plans to pro cure 1,213 Boeing/Sikorsky RAH-66 Comanche helicopters, but seems to be stepping back from its aim of converting all Boeing AH-64As into the more capable Apache Longbow configuration. A March 2000 draft of the avia tion modernisation plan obtained by Flight International shows that the US Army has ruled out reduc ing the size of its planned RAH-66 Comanche fleet. Maj Gen Anthony Jones, US Army Aviation Center commander and author of the aircraft procure ment plan, which was to be official ly released on 1 April is scheduling the full complement of Com- anches to be delivered. The plan is being presented to the US Department of Defense Acquisition Board (DAB) for ap proval. Concern over funding has generated speculation that the DAB might decide to cut the $43 billion RAH-66 programme to 650 $71 billion. The four aerospace companies' 37,000-plus suppliers, hundreds of airlines and national governments will be invited to join die marketplace, which is expected to provide an exchange for prod ucts, services and technical data. The exchange will provide an "enormous opportunity for effi ciency gains", say the partners, with sales benefits, reduced trans action and acquisition costs and enhanced transparency of the sup ply chain. The partners will take equal ownership stakes, with adjust ments to be based on the individual flow of e-commerce through the exchange over the first three years. Commerce One will have a 5% share, while 20% has been set aside for other participants. "We hope that more large partners will come in," says Harry Stonecipher, Boeing president. The partners "expect a flood of requests to join". The participants are keen for European Aeronautic, Defense and Space to be involved. "We've had talks and we have no doubt the advantages will bring them into it," says BAE chairman Sir Dick Evans. Other large companies, including Xorthrop Grumman and Rock well Collins, have yet to commit to industry-wide e-commerce initia tives and may be attracted to the venture. The partners decline to detail their investment, but BAE chief executive John Weston says it is "minimal" compared to what they are creating. The participants, which plan an initial public offer ing - probably next year - do not expect anti-trust immunity prob lems, but concede that e-com merce ventures are attracting interest from the authorities. Although the new e-commerce venture is not the first of its kind, it could become dominant because of the size and industry reach of its founders. The breadth of the ini tiative "will make it the prime site and is the reason that we all sat down together, but that doesn't mean that there can't be other sites in other areas", says Condit. Two other big aerospace e-commerce initiatives - MyAir- craft.com from Honeywell/United Technologies and SITA/AAR's aerospan.com - are set for launch by mid-year. Honeywell says: "We believe this new [Boeing, BAE, Lockheed Martin, Raytheon] venture further validates the concept of multicom- pany sites. We were the first to espouse this concept and we are on the way to implementing it." Honeywell aims to announce new partners shortly and launch in die second quarter. It intends to be "the leader" in aerospace e-busi ness, but has not ruled out co-oper ation with die rival initiative. 3 US Army rolls out aviation modernisation plan li The US Army remains faithful to Comanches but may hold back on Apaches machines, ending helicopter pro duction by 2016. The draft plan envisages pro duction starting in fiscal year 2004, leading to initial fielding in December 2006 and a full cavalry squadron equipped by FY2008. The strategy retains a maximum production rate of 72.Comanches a year, beginning in FY2010, run ning through FY2024. Boeing officials will be less pleased with the US Army's current plan for the AH-64. The army leadership had hoped to reverse last year's cuts to the number of early-model Apaches to be upgrad ed to the AH-64D standard. Originally, 743 AH-64As were to be modernised and 227 millime tre-wave radars acquired. Last year, die number of upgrades was slimmed to 5 3 0, but radar numbers rose to 500. The draft plan calls for upgrade of 600 AH-64As to the Apache Longbow configuration. To re main in service through to FY2020, they would be replaced by a new attack helicopter, an upgraded RAH-66, or a further remanufac- tured AH-64. The draft document reverts back to 227 fire-control radar (FCR) purchases through to FY2007. "The Army is awaiting the completion of the Attack Helicopter Battalion Mix Study to determine the correct number of FCRs based upon the new force structure," die plan says. The army will further mod ernise 300 tandem-rotor Boeing Chinook helicopters through to 2013 to CH-47F configuration at a cost of S3 billion. • FLIGHT INTERNATIONAL 4 - 10 April 2000 5
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