Monthly Archives: November 2011

SPEEA, Spirit AeroSystems reach tentative agreement on labor contract

Nov. 30, 201111:00 a.m.

Negotiators for Spirit AeroSystems and its technical and professional union have reached a tentative agreement on a 9 1/2 year labor contract, which covers 2,300 employees.

If ratified by members of the Society of Professional Engineering Employees in Aerospace, the agreement provides a $2,000 signing bonus, annual market raises starting next year, participation in the Spirit Incentive Plan, and increased restrictions on Spirit’s use of contract labor, SPEEA officials said.

The agreement comes after members rejected Spirit’s initial offer by 96.5 percent on July 28.

SPEEA credits an increase in membership to the outcome. Membership has risen from 30 percent to 52 percent since the last vote.

“The company listened to their employees and made significant improvements on their previous offer,” Bill Hartig, SPEEA’s chairman of the Wichita Technical and Professional Unit negotiation team, said in a statement.

If accepted, the contract would use the Salary Information Retrieval System by Mercer, which establishes benchmark salaries, to determine salary pools for annual raises, SPEEA said.

Employees would also participate in the Spirit Incentive Plan, based on company performance targets.

The length of the contract is longer than negotiators wanted, but tying increases to the Mercer data and escalating incentive plan targets will assure salaries remain competitive, the union said.

“It’s been a long journey and a tremendous amount of work and effort has been put in to get to the final result,” Bob Brewer, SPEEA Midwest director said in a statement.

By Molly McMillin | Filed under Spirit AeroSystems, unions | Comments Off

Boeing has long road ahead to break even on 787 Dreamliner

Nov. 28, 201110:48 a.m.

Boeing has acknowledged that it will be years before the company becomes profitable on its 787 Dreamliner — 10 years in fact. The plane is more than three years behind schedule.

The company delivered the first 787 in September.

The Daily Herald has put together an interesting graphic, illustrating 787 deliveries and profitablity.

http://www.heraldnet.com/assets/pdf/DH1007911125.PDF

By Molly McMillin | Filed under Boeing | Comments Off

Cessna exhibit to open at Kansas Aviation Museum

Nov. 23, 201111:37 a.m.

The Kansas Aviation Museum is preparing to open an exhibit featuring the Cessna Aircraft Co.

The exhibit will present information about Clyde Cessna and the company bearing his name, museum officials said. It will feature a timeline of historic, Cessna aircraft and scale reproductions of the planes.

Rotating exhibits will showcase various aspects of Cessna’s history and the memorabilia that comprises a large portion of the museum’s collection.

An open house and dedication will be held from 4 p.m. to 7 p.m. Thursday, Dec. 8. The event is free and open to the public. The event also includes full access to the rest of  the museum, located at 3350 George Washington Blvd.

By Molly McMillin | Filed under aircraft manufacturers, Cessna, Kansas Aviation Museum | Comments Off

Source: Hawker Beechcraft layoffs total 300, company did not release a number

Nov. 11, 201111:42 a.m.

Hawker Beechcraft issued 60-day layoff notices to 300 employees today, including 210 salary and 90 hourly workers, a source said.

The company, however, is not saying how many jobs were cut.

Most of the employees were notified today, the company said in a statement. “However, we do not have a specific number to share,” the statement said. “We can confirm that the Kansas employment level after this work force reduction will stay well above what our partnership with the state of Kansas requires.”

Hawker Beechcraft did not say when it would release layoff figures.

But a source said another round of cuts could come around February.

Many of those laid off are being walked out today. The company has said that those whose last days are today will be paid for the two months. That’s a practice common in past layoffs.

The number of cuts is smaller than many had expected.

Hawker Beechcraft warned employees in a letter last week that 60-day layoff notices would be issued today as the market for small-to-midsize business aircraft remains weak.

The cuts would affect all aspects of the company, the letter said.

The cuts means the city will have to work aggressively with several hundred families to meet their needs, said Mayor Carl Brewer. “We’re always disappointed any time we lose any type of jobs.”

The city is concerned any time we lose jobs, Brewer said.

Sedgwick County Commission chairman Dave Unruh said he’s disappointed about the layoffs in light of the trials facing the economy, but he respects the company’s right to make the decision.

“It’s a tough deal, but they’ve got to do what it takes to keep their boat afloat,” Unruh said.

Last year, the state of Kansas agreed to give Hawker Beechcraft $40 million in tax-exempt bonds to upgrade products, reconfigure operations and train its people. The city of Wichita and Sedgwick County agreed to add $5 million together. The action came amid fears that the company would move its operations to Louisiana.

In exchange, Hawker agreed to keep its headquarters and most of its operations in Wichita until at least Dec. 31, 2020. It also agreed to employ at least 4,000. But penalties don’t kick in unless employment drops below 3,600.

By Molly McMillin | Filed under aviation industry, Beechcraft Corp. | Comments Off

Analyst: Airbus A350 program delay not unexpected

Nov. 11, 201111:30 a.m.

EADS announcement yesterday of a delay on its new Airbus A350 XWB program was expected, Cowen and Co. analyst Cai von Rumohr wrote in an investor report today.

But it sounds like delays on Spirit AeroSystems’ work on the program is abating, he wrote.

On Thursday, EADS announced up to a six-month delay on the A350, saying its  expected entry-into-service now has been moved to the first half of 2014. The company cited a lack of maturity on the program.

EADS has halted delivery of parts to final assembly, which shifts the initial build of the first A350 into 2012, von Rumohr wrote.

The delay allows Airbus facilities and suppliers who are behind in development to reach “a greater level of maturity,” von Rumohr wrote.

EADS didn’t provide details on the problems, but according to a report by Flightblogger, A350 program chief Didier Evrard indicated the program is affected by work on the aircraft’s center fuselage and fixed trailing edge, built by Spirit AeroSystems and GKN, respectively, von Rumohr noted.

Spirit, in a conference call earlier this year, said it was experiencing “schedule compression” from late delivery of final engineering plans from EADS.

Spirit delivered the panels for the upper shell of the center fuselage last month to its Saint-Nazaire, France, facility. The lower shell panels are to ship before the end of the year. Spirit will perform the final assembly on the section in France before delivering it to an Airbus facility nearby.

By Molly McMillin | Filed under Airbus, Spirit AeroSystems | Comments Off

Airbus A350 XWB faces delay

Nov. 10, 201110:44 a.m.

The Airbus A350 XWB is the latest new airplane program to face a delay.

Airbus’ parent company, EADS, announced today that entry-into-service for its long-range composite jet is now expected in the first half of 2014. That could mean up to a six-month delay.  It was originally scheduled for 2013.

The company also took a $273 million charge linked to the program.

“I am confident the commercial aircraft market combined with our strong backlog will sustain our growth in the years to come,” Louis Gallois, EADS CEO, said in a statement. “Our large program developments, especially the A350, continue to have our highest management attention.”

Spirit AeroSystems is designing and building the composite center fuselage section and front wing spar for the plane at its facility in Kinston, N.C. Spirit shipped the first upper section to its plant in Saint-Nazaire, France, last month. It plans to ship the lower section yet this year. The company won the contract in 2008.

Airbus’ announcement of a schedule slide will not have an impact on Spirit, said company spokesman Ken Evans.

“We continue working with our customer to meet their requirements and delivery schedule for the pre-final assembly phase,” Evans said. “We’re very focused, and we need to be on any development program like this. That’s unchanged.”

Maturity of the A350′s main components at the start of final assembly remains one of the company’s top priorities, Gallois said.

The Airbus A350 will compete with Boeing’s composite 787 Dreamliner. Boeing faced three years of delays on the program.

The A350 program is advancing, EADS said. Manufacturing and pre-assembly of the A350-900 are progressing across all pre-final assembly sites, it said. The start of the final assembly line is now scheduled for the first quarter of 2012.

By Molly McMillin | Filed under Airbus, aircraft manufacturers, Spirit AeroSystems | Comments Off

Jim Greenwood, the man who made “Learjet” a household name, dies at 91

Nov. 8, 20112:58 p.m.

Jim Greenwood, a former public relations director for Bill Lear who helped make the name “Learjet” a household word, died Friday in Green Valley, Ariz. Greenwood was inducted into the Kansas Hall of Aviation in 2004.

“He wrote the book … on how do you promote business aviation, how do you sell business aviation, how do you communicate about business aviation,” said Al Higdon, a lifelong friend who worked with Greenwood at Beech and Learjet. “He did that from the 50s to the 80s.”

Greenwood had friends in all levels of the business jet industry — from CEOs to those who worked on the shop floor, Higdon said.

“He knew the industry inside and out,” Higdon said. “He loved it, and he always did what was best for the industry at the time.”

Greenwood came to Wichita in 1955 to become manager of press relations for Beech Aircraft Corp., and worked closely with Olive Ann Beech and Frank Hedrick.  In 1964, he moved across town to work with Bill Lear at the Lear Jet Corp. There, his writing helped make the Learjet the most popular business jet of the 1960s, according to information from the Kansas Aviation Hall of Fame.

In 1970, he left to join the Federal Aviation Administration in Washington as its director of public affairs. He later returned to Gates Learjet. Along the way, Greenwood met a variety of celebrities such as James Coburn, Arthur Godfrey and Johnny Carson. Greenwood developed business jet safety seminars and humanitarian projects using the Learjet. He retired in 1985 as senior vice president of corporate affairs at Gates Learjet.

Greenwood was born in 1920 in Washington, D.C., and began flying at age 16. He joined the Navy a week after Pearl Harbor, serving as a parachute rigger and helping develop emergency parachute equipment.  After the Navy, Greenwood worked for a commercial parachute service in Alexandria, Va. He then began a writing career, working as a journalist for the local newspaper. He also wrote three books, “Parachuting for Sport,” “The Parachute: From Balloons to Skydiving,” and “Stunt Flying in the Movies.”

A memorial service for Greenwood will be held in the spring of 2012, Higdon said. A date has not been set.

By Molly McMillin | Filed under aviation industry, Beechcraft Corp., Bombardier Learjet | Comments Off

Boeing receives second P-8A low-rate production contract from the Navy

Nov. 8, 201110:44 a.m.

Boeing has  received a $1.7 billion low-rate initial production contract from the U.S. Navy for seven P-8A Poseidon maritime surveillance aircraft.

The Navy plans to buy 117 of the planes, which are based on Boeing’s 737 commercial airliner. The contract will benefit Spirit AeroSystems, which builds the 737 fuselage for Boeing.

The P-8A is an anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft that will replace the Navy’s P-3 Orion fleet.

The award includes money for spares, logistics and training devices. Boeing will also provide aircrew and maintenance training for the Navy beginning in 2012. The training system will include a full-motion, full-visual operational flight trainer that simulates the flight deck and a weapons tactics trainer for mission crew training.

By Molly McMillin | Filed under Boeing, Spirit AeroSystems | Comments Off

Hawker Beechcraft issues 100 layoff notices

Nov. 3, 20115:15 p.m.

Hawker Beechcraft issued 60-day layoff warnings this week to 100 Wichita employees and to one Salina employee, according to the Kansas Department of Labor.

The notices were the most recent since Sept. 30 when the company issued 60-day warnings to 13 Wichita workers.  So far this year, the company has issued 459 layoff notices, according to the Department of Labor.

The layoffs come as Hawker Beechcraft strives to close Plants I and II in east Wichita and send work to outside suppliers and to its facility in Mexico to cut costs.

A Hawker Beechcraft spokeswoman could not be reached for comment.

By Molly McMillin | Filed under Beechcraft Corp. | Comments Off

Bombardier commercial aircraft executive to speak at Wichita Aero Club Monday

Nov. 3, 20116:21 a.m.

Bombardier commercial aircraft executive Chet Fuller will be the keynote speaker at the Wichita Aero Club luncheon on Monday.

Fuller leads Bombardier’s international sales team and its marketing department for commerical aircraft — the CRJ, Q-Series and the CSeries airplanes.

Fuller came to Bombardier from GE Aviation, where he served as president of the GE Aviation Civil Systems division. He also held management positions at Honeywell Commercial Aerospace and ATA Airlines.

Fuller is a licensed pilot with more than 4,000 hours of flying time, including time flying carrier-based aircraft while serving in the U.S. Navy. He holds a bachelor of science degree from Michigan State University and a master’s of business administration from Indiana University.

The luncheon will be held at noon at the Wichita Airport Hilton.

For information or tickets for the luncheon, go to www.wichitaaeroclub.org or call 316-641-5962.

By Molly McMillin | Filed under aircraft manufacturers, aviation industry, Bombardier Learjet | Comments Off