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Aviation History
2004
2004-09 - 2518.PDF
BUSINESS AGREEMENT GRAHAM WARWICK / WASHINGTON DC Honeywell and IBM seal chip deal US aerospace company's defence customers to benefit from 10-year, $250 million strategic partnership Honeywell has signed a 10-year agreement with IBM that gives the aerospace company access to the electronics giant's commercial technologies for use in defence and space programmes. Under the agreement, worth $250 million over 10 years, Honeywell's defence and space business will get early access to technology developments in IBM's PowerPC architecture and electron ics design capability, says Ed Wheeler, vice-president and gen eral manager, Honeywell Defense & Space Electronics Systems. Wheeler says the deal will enable Honeywell to offer military cus tomers commercial solutions to problems such as avionics obsoles cence and will accelerate design and development of network-centric capabilities for aircraft, munitions and space and ground vehicles. Under the agreement IBM will also take over some of Honeywell's digital electronics design, particu larly for processing, memory, high speed input/output and communi cations, says Wheeler. "Honeywell will continue to have a design capability, but for embedded com puting we will probably turn that over to IBM," he says. Honeywell will also keep its design capability for graphics drivers and radiation-hardened electronics, Wheeler says, but the company plans to "carve out" pieces of the design task to be performed by IBM's Engineering & Technology Services unit. He says design could become more collaborative. IBM left the defence market in the early 1990s when it sold its Federal Systems business to Loral, the unit going on to become Lockheed Martin Systems WORKSHARE JUSTIN WASTNAGE / MILAN Avio applies finishing touches to GEnx tie-up with General Electric Italian engine subsystems manufac turer Avio is finalising its workshare on the General Electric GEnx engine for the proposed Airbus A3 50 and Boeing 7E7, revenue from which will replace income from the General Electric CF6-80 in its portfolio. The GEnx family will form the largest component of Avio's invest ments this decade, with its contribu tion to the engine development and certification programme likely to reach around $1 billion over the next five years. Avio vice-president for commercial engines Franco Rodi says break-even is not expected for 12-15 years. In September, Avio signed a memorandum of agree ment to produce around 12% of the GEnx. The company will develop and manufacture the Rodi: break-even in 12-15years accessory drive train and the low- pressure turbine (LPT) module as the main elements of its share, and says it will have, settled on the final configuration bf each by year end. The Milan-based company is devel oping the LPT module in collabora- Integration. In September, Boeing and IBM announced a 10-year alliance to develop digital commu nications and information tech nologies for US network-centric defence and intelligence systems. L-3 Communications signed a five- year, $80 million engineering and technology services agreement with IBM in March. In August 2003, Raytheon formed a similar strategic relationship with IBM covering chip design, software development, system architecture and network integration for aero space and defence. tion with Ishikawajima-Harima Heavy Industries (IHI), each being responsible for around 50%. "IHI will do the rotating parts, we'll do the static parts. That's pretty much how we've split it," says Rodi. The GEnx will replace the CF6 in Avio's business plan. The CF6 rep resents about 10% of revenues and Rodi says the GEnx will account for a similar proportion from 2010. He adds that the real value will come from aftersales and support. "The market for this size of aircraft is expected to be more than 2,400, to be shared between the 7E7 and A350." Avio also has collaborative programmes with Rolls-Royce on the Trent 900 for the Airbus A380 and on the GE90, as well as on the Pratt & Whitney Canada PW150 and PW308 regional jet engines. • Marc Parent has been appointed group president, sim ulation products at CAE after a 20-year career with Bombardier Aerospace, most recently as the company's Toronto division vice- president and general manager. • Ukraine's biggest airline, Aerosvit, has hired Vitali Potiomski as its new chief executive. He is currently chief executive of Ukraine International and will take up the new position on 1 December. • Wolfgang Gohde has been named chief executive of Lufthansa Systems Group, succeeding Dr Peter Franke, who will retire on 1 April 2005 after 10 years as chief executive. • Cabin safety specialist STG Aerospace has appointed Jeff Kunz as head of sales, respon sible for managing the global network of STG Aerospace agents outside the Americas. ACQUISITION Boeing to sell Electronic Dynamic Devices to L-3 Communications Boeing is continuing moves to focus on systems integration by agreeing to sell defence and space products supplier Electronic Dynamic Dev ices (EDD) to L-3 Communications for an undisclosed amount. Torrance, California-based EDD produces travelling wave-tube amp lifiers and electric propulsion sys tems. Boeing Satellite Systems will stay as its largest customer. Boeing will keep the group that produces power systems for satellites. L-3 expects EDD to generate sales of around $90 million next year. Xenon ion propulsion sys tems produced by the unit have caused problems on several satel lites, for which Boeing is expected to retain responsibility when the deal closes early next year. EDD is the ninth acquisition announced by L-3 this year, taking its total purchases well over the $600 million mark. Earlier this month the company agreed to buy Raytheon's Commercial Infrared business for $42 million. www.fliqhtinternational.com FLIGHT INTERNATIONAL 30 NOVEMBER - 6 DECEMBER 2004 27
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