Replies to post #82 on Boeing Company (BA)

[OptionMonster]

I am cheering for BA..I like LMT but have made alot more $$ with BA!

[OptionMonster]

Another sad day for BA!

Lockheed beats Boeing to win $3.57B GPS contract

WASHINGTON (AP) - Lockheed Martin Corp. beat out Boeing Co. to win an Air Force contract worth up to $3.57 billion to build as many as 12 next-generation
global positioning satellites, the Pentagon said Thursday.

The deal is the first of three awards to supply a total of 32 satellites for the Pentagon's new GPS III system. As the manufacturer of the first block of satellites, Lockheed will be in a strong position to win the two follow-on
contracts.

Col. Dave Madden, commander of the Air Force's Global Positioning Systems Wing, said the Air Force hopes to work with the same company on all 32 satellites. Pentagon officials declined to speculate on how much all three
awards could ultimately be worth.

The military relies on GPS systems to provide precision timing and navigation signals used to help pilot aircraft, guide bombs and missiles, direct troops, map battlefields, conduct minesweeps and perform other operations critical to modern warfare. GPS technology also provides the backbone for a number of consumer services, including car navigation systems and automatic teller machines.

The first GPS III satellites are scheduled for launch in 2014, with all 32 satellites in orbit by 2022. The new GPS III network will have a more powerful military signal resistant to enemy jamming and a stronger commercial signal.

It will also feature a cross-linked command and control system that will allow simultaneous upgrades of the entire GPS constellation from a single ground station and will be interoperable with Europe's Galileo GPS system.

Boeing and Lockheed both already hold satellite contracts for the military's existing GPS II constellation, but Boeing's part of that program has suffered technical problems, delays and cost increases. Those troubles may have
contributed to its loss in the GPS III contest, said Loren Thompson, a defense industry consultant based in Virginia. Thompson consults for Lockheed, among other aerospace companies, but not on the GPS III program.

In a statement, Lockheed said it is "honored that our government customer has entrusted our team to build this vital system, which will provide improved GPS accuracy and assured availability for military and civilian users
worldwide."

The GPS III deal is the latest in a series of big contract losses for Boeing in recent months.

In February, Northrop Grumman Corp. and European Aeronautic Defence and Space Co. beat out Boeing to win a $35 billion Air Force order for 179 aerial refueling tankers.

That deal is the first of three Air Force awards worth as
much $100 billion to replace its entire fleet of nearly 600 tankers over the next 30 years. Boeing has filed a formal protest of the contract with Governmental Accountability Office, which is expected to issue a ruling by June
19.

In March, Lockheed defeated Boeing to grab a $766.2 million Defense Department contract to design and build a radio system that can connect aircraft, ships and ground stations across the military. That deal could lead to
the installation of tens of thousands of radios and ultimately be worth billions.

And in April, Northrop Grumman beat out both Boeing and Lockheed for a $1.16 billion Navy contract to design and develop an unmanned aircraft to patrol coastlines and open ocean. The deal could ultimately be worth billions as the
Navy plans to buy 68 of the planes. Lockheed is protesting that award.

In a statement, Boeing said it is disappointed by the loss of the GPS III contract and looks forward to a debriefing from the Air Force.

Madden stressed that the Air Force intends to take a very active role in managing the GPS III program, working closely with the contractor and issuing precise guidelines for the design of the satellites.

John Young, undersecretary of defense for acquisition, technology and logistics, has directed the Air Force to tie payments to the contractor to "specific program accomplishments," not to adjust the scope of the program or
change its technical specifications and to "consider solutions which lower cost or risk to deliver within or below budget."

Shares of Lockheed Martin, based in Bethesda, Md., rose 35 cents to close at $109.06 before the announcement. They gained $1.92, or 1.8 percent, in after-hours trading.
Shares of Chicago-based Boeing fell 14 cents to $85.55 and were unchanged after-hours.

Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.

[OptionMonster]

McDonnell Douglas Corp., a wholly owned subsidiary of The Boeing Co., St. Louis, Mo., is being awarded a $139,000,000 ceiling-priced indefinite-delivery/indefinite-quantity contract for the procurement of F/A-18F aircrew and maintainer systems, computer-based training systems and support for the Royal Australian Air Force under the Foreign Military Sales Program. Initial requirements include two each: Tactical Operation Flight Trainers, Low Cost Trainers, and Integrated Virtual Environment Maintenance Trainers, and related courseware. Work will be performed in St. Louis, Mo., and work is expected to be completed in May 2014. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Warfare Center Training Systems Division, Orlando, Fla., is the contracting activity (N61339-08-D-0006).

[OptionMonster]

Boeing Celebrates the Debut of the New 777 Freighter

EVERETT, Wash., May 21 /PRNewswire-FirstCall/ -- The Boeing Company (NYSE:BA) today debuted the new 777 Freighter. Employees, suppliers, airline customers and community officials celebrated the world's most capable twin-engine cargo airplane during two debut events.

"We are excited to debut the newest member of our 777 and freighter families," said Larry Loftis, vice president, 777 program. "Today is a tribute to the dedication and hard work our employees, customers and suppliers put into making this airplane a reality. The 777 Freighter's unmatched range, efficiency and capacity as a twin-engine cargo airplane will build on the Boeing leadership in the cargo market."

With a maximum takeoff weight of 766,000 pounds (347,450 kilograms), the 777 Freighter will have a revenue payload capability of 226,000 pounds (103 metric tons).

The 777 Freighter will be capable of flying 4,885 nautical miles (9,045 km) with a full payload and general cargo market densities, making it the world's longest-range twin-engine freighter. The airplane's range capability will translate into significant savings for cargo operators: fewer stops and associated landing fees, less congestion at transfer hubs, lower cargo- handling costs and shorter cargo-delivery times.

"Anytime you develop a new airplane that will deliver unmatched performance, there are challenges to overcome," said Kim Pastega, deputy program manager and deputy chief project engineer, 777 Freighter program. "By working together with our customers and suppliers, we found a way to meet those challenges and build the best possible new cargo airplane. The successful application of 777 technology to the cargo market is reflected in the broad customer base for the airplane."

To date, Boeing has secured 78 firm orders from 11 customers for the 777 Freighter, which accounts for more than 20 percent of the 777 program's backlog. The customer base includes launch customer Air France; China Southern Airlines; Deucalion, which will lease to AeroLogic; Emirates; FedEx; GECAS; Guggenheim Aviation Partners; Korea Air; LAN Airlines; Oak Hill; and Qatar Airways.

"We are very pleased with the high level of participation and input Boeing solicited from the customers in the development of this airplane," said Pierre Vellay, senior vice president of New Aircraft and Corporate Fleet Planning, Air France. "Working as true partners with Boeing on the 777 Freighter, we are pleased with the capability and performance it will bring to the air cargo industry."

Following the debut events, the 777 Freighter will prepare to begin the flight test and certification program in June. The first 777 Freighter will be delivered to Air France in the fourth quarter.

[OptionMonster]

Investors brace for impact of Air Force shake-up

WASHINGTON (AP) - The ousting of the Air Force's top military and civilian leaders this week over embarrassing nuclear mix-ups has muddied the outlooks for some major defense contractors.

Wall Street investors and military analysts are wondering what impact the historic shake-up will have on the future of the Air Force's buying strategy and specifically on two contested multibillion-dollar contracts -- a $15 billion
rescue helicopter deal awarded to Boeing Co. and a $35 billion pact for aerial refueling tankers awarded to Northrop Grumman Corp.

Defense stocks -- lead by Boeing and Lockheed Martin Corp. -- slipped Friday, a day after Defense Secretary Robert Gates accepted the resignations of Air Force Chief of Staff Gen. Michael Moseley and Air Force Secretary Michael
Wynne -- a highly unusual double firing. Shares of Boeing fell $4.15, or 5.4 percent, to $73.16 Friday, while Lockheed Martin fell $3.92, or 3.6 percent, to
$103.75.

The surprise personnel moves put the Air Force in a "disadvantageous position in the waning days of a lame duck administration," Heidi Wood, an analyst with Morgan Stanley, said Friday in a note to clients.

Compounding the fact that fiscal 2009 budget requests have yet to be completed, analysts said the timing of Gates' decision could further affect several programs, including Boeing's high-profile challenge of a $35 billion
deal awarded to Northrop Grumman and Airbus parent European Aeronautic Defence and Space Co.

The nonpartisan Government Accountability Office will rule by June 19 on Boeing's protest, which it filed shortly after it lost the contract to build the 179 mid-flight refueling planes.

The Air Force's top priorities now will be to secure tanker funding for the 2009 budget year, and advanced funding for the program in the 2010 budget, said Jim McAleese, a Virginia-based defense consultant. Without significant
commitments dedicated to future production, the program could be in jeopardy under the next administration, he said.

The Air Force also is close to re-awarding the $15 billion contract for search-and-rescue helicopters that Boeing originally won. The service was forced to re-compete that deal after the GAO twice upheld protests filed by Lockheed
Martin and Sikorsky Aircraft, a unit of United Technologies Corp.

An Air Force spokeswoman on Friday declined to comment on any contract-related matters. Spokesmen for Northrop Grumman and Lockheed Martin on Friday said it would be inappropriate to comment on an internal Pentagon matter.
Boeing did not return a call.

But the Air Force leadership transition also will make it harder for the service to sustain key programs like Lockheed Martin's F-22 fighter jet and a planned next-generation bomber, analysts said.

For more than a decade, all the military services have sent their "wish lists" to lawmakers to lobby for future buys on key programs. However, the Air Force has been "most brazen" among the services, said Winslow Wheeler, director
of the Straus Military Reform Project at the Center for Defense Information, a Washington think tank.

"It sends a very clear message that the secretary has certain priorities, and that those priorities are going to be pursued," said Professional Services Council president Stan Soloway, an expert on federal acquisitions.

For example, the Air Force says it needs 381 of Lockheed Martin's F-22s and is fighting to keep the production line from being shut down. While the option for 20 more planes were included in the 2009 budget year, the service had been
lobbying Congress to tack on an additional $500 million to keep the lines open and to pay for materials for future aircraft. Gates has said only 183 of the
radar-evading planes are needed.

"The Air Force is no longer the master of its destiny, that (now) lies in the hands of the people running the Pentagon," said Loren Thompson, a defense analyst with the Virginia-based Lexington Institute.