The United States and the European Union have agreed on a five-year suspension in tit-for-tat tariffs over a 17-year-long trade dispute that involved subsidies given to Boeing and Airbus for airplane development. The deal, announced today during President Joe Biden’s meetings with EU leaders in Brussels, heads off billions of dollars in duties that could have affected a wide range of products — although U.S. Trade Representative Katherine Tai said the tariffs could be reactivated if “U.S. producers are not able to compete fairly.”
Amazon, Microsoft and Google are involved in a bidding process to provide Boeing with cloud computing services, a contract that’s expected to be worth at least $1 billion over several years, The Information reports.
Today’s report is attributed to four people with knowledge of the matter. We’ve reached out to Amazon Web Services, Microsoft Azure and Google Cloud as well as Boeing, but this is typically something such companies doesn’t talk about publicly during negotiations — as The Information found out. (For what it’s worth, Google Cloud sent us a “no comment” email.)
The Information says AWS considers the Boeing contract “a must-win deal.” Andy Jassy, who’s currently in charge of AWS’ cloud business and is due to take over as Amazon’s CEO on July 5, is reportedly directly involved in the process.
New Vista Acquisition Corp., the blank-check company founded by former Boeing CEO Dennis Muilenburg to prime the pump for a future high-tech acquisition, went on the market today with an initial public offering valued at $240 million. That’s significantly higher than the originally planned $200 million offering.
The IPO comes a little more than a year after Boeing fired Muilenburg amid controversy over his handling of the company’s 737 MAX crisis. Boeing is still dealing with the financial and reputational aftermath of two catastrophic crashes in late 2018 and early 2019, the worldwide grounding of the 737 MAX fleet that resulted, and deep questions that were raised during investigations into Boeing’s practices.
Boeing is now well into the 737 MAX fleet’s return to service under Dave Calhoun, Muilenburg’s successor as Boeing CEO.
During his time at Boeing, Muilenburg was a strong advocate for technologies focusing on advanced air mobility and autonomous flight — the sorts of technologies that could spawn new types of electric-powered, vertical takeoff and landing vehicles, or eVTOLs. Such craft are also known as air taxis, personal air vehicles or flying cars. Many of Boeing’s efforts in that market have been put on hold due to the financial impacts of the 737 MAX crisis and the coronavirus pandemic.
New Vista, which has Muilenburg as chairman and CEO, says it will focus on businesses operating in the space, defense and communications industries, as well as advanced air mobility and logistics. The company is widely expected to target an eVTOL venture for a merger or acquisition.
Bingen, Wash.-based Insitu, a Boeing subsidiary, has agreed to pay $25 million to settle allegations that it used recycled parts rather than new parts in military drones, the Justice Department announced today.
The parts were put into drones that Insitu built for the U.S. Special Operations Command and the Department of the Navy between 2009 and 2017, according to the U.S. Attorney’s Office for the Western District of Washington.
When Insitu was awarded the contracts to supply the drones, under the terms of no-bid contracts, the company said it would use new parts and materials. But according to the allegations, Insitu substituted less expensive recycled, refurbished, reconditions and reconfigured parts.
“Taxpayers deserve to get what they paid for — especially in significant no-bid military contracts,” U.S. Attorney Brian Moran said in a news release. “Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing.”
Boeing says it’s entered into a $2.51 billion agreement with the U.S. Justice Department to resolve a criminal charge related to the Federal Aviation Administration’s evaluation of Boeing’s 737 MAX airplanes.
The deferred-prosecution agreement addresses a single charge of conspiracy to defraud FAA inspectors about the safety of the 737 MAX’s automated flight control system. Investigators say changes to a component known as the Maneuvering Characteristics Augmentation System, or MCAS, were to blame in a pair of catastrophically fatal 737 MAX crashes that occurred in Indonesia in October 2018 and in Ethiopia in March 2019.
Those crashes led the FAA and other regulators to ground hundreds of 737 MAX planes operated by airlines around the world. After more than a year of investigations, software fixes and revisions to pilot training requirements, the FAA cleared the planes to return to service last November.
The agreement calls for Boeing to pay a penalty of $243.6 million, provide $1.77 billion in compensation to the airlines that purchased 737 MAX jets, and establish a $500 million fund to compensate the families of the 346 people who were killed in the two crashes. Boeing also agreed to cooperate with investigators and strengthen its anti-fraud compliance program.
If Boeing complies with the requirements of the agreement, filed today with a federal court in Texas, the criminal charge will be dismissed after three years.
Boeing says it’ll be repurposing the Seattle-area facility that has served as the focus for research into the composite materials used in aircraft ranging from the B-2 Stealth bomber to the 787 Dreamliner.
In an emailed statement, Boeing said much of the work being done at the Advanced Developmental Composites Center, situated across the street from Seattle’s Museum of Flight, will be distributed to other Boeing facilities — mostly in the Puget Sound region. Other work, unrelated to Boeing Commercial Airplanes, will continue to be done at the 600,000-square-foot facility.
Boeing cast the move as a cost-saving and efficiency-enhancing measure.
Boeing’s rebuilding year drew to a close today with a milestone capping a momentous year in aerospace: the first U.S. passenger flight for a 737 MAX jet since the worldwide fleet was grounded.
American Airlines Flight 718 carried 87 passengers from Miami to New York’s LaGuardia Airport, more than 21 months after two catastrophic crashes in Indonesia and Ethiopia brought a halt to 737 MAX flights.
The incidents led to months of investigation, focusing on an automated flight control system that was found to be vulnerable to software glitches. Boeing had to revamp the system and rework pilot training routines in cooperation with airlines. The Federal Aviation Administration gave the go-ahead for the return to commercial operations just last month.
Brazil’s Gol Airlines and Aeromexico resumed flying 737 MAX jets earlier this month, but Flight 718 was the first time since the grounding that a MAX carried paying passengers on a regularly scheduled U.S. flight.
It’s been almost a year since Boeing fired CEO Dennis Muilenburg over his handling of the 737 MAX crisis, but now he’s found a new role in the manufacturing industry — as an investor and adviser at a company building self-driving electric tractors.
California-based Monarch Tractor says Muilenburg, who grew up on a farm in Iowa and served as a Boeing engineer and executive for more than 30 years, will bring his experience in the aerospace world to agricultural technology.
“Monarch is at the perfect intersection of my experience paths,” Muilenburg said in a news release.
The company unveiled its “driver optional” tractor just last week. The electric vehicle is designed to perform pre-programmed tasks in farm fields, but also will be capable of being driven either remotely or in the cab. The first tractors are due to be shipped in the fall of 2021, at a starting price of $50,000.
Two years after the catastrophic crash of a Boeing 737 MAX jet in Indonesia touched off an aviation crisis, the Federal Aviation Administration today laid out the path for hundreds of 737s to return to flight.
But that can’t happen immediately: It’ll take months for the FAA to check the implementation of changes in pilot training procedures, and verify all the fixes that will be made. All 737 MAX planes have been grounded worldwide in the aftermath of a second crash that occurred in Ethiopia in March 2019.
“This is not the end of this safety journey,” FAA Administrator Steve Dickson told CNBC. “There’s a lot of work that the airlines and the FAA and Boeing will have to do in the coming weeks and months.”
Stan Deal, president and CEO of Boeing Commercial Airplanes, said in a news release that today’s FAA directive was an “important milestone” but agreed that there’s a lot of work to be done. “We will continue to work with regulators around the world and our customers to return the airplane back into service worldwide,” Deal said.
The key fixes involve software rather than hardware — and that part of the job is more like installing a Windows update than installing an actuator.
Boeing astronaut Chris Ferguson, who commanded NASA’s final space shuttle mission nine years ago, says he’s passing up his chance to be on the first crewed flight of Boeing’s Starliner space taxi next year.
Ferguson, who is director of mission integration and operations for Boeing’s Commercial Crew Program, tweeted that he’s taking on a “new mission” that prioritizes “my most important crew — my family.”
The 56-year-old former astronaut told Space News that he didn’t make his decision lightly: “It surrounds what has really amounted to a year that is replete with family obligations that I just do not want to risk missing,” he said. Among those obligations, according to The Associated Press, is his daughter’s wedding.
NASA astronaut Barry “Butch” Wilmore, who has served as a backup spaceflier during Starliner training, will take Ferguson’s place.
“Butch will be able to step in seamlessly, and his previous experience on both space shuttle and space station missions make him a valuable addition to this flight,” Kathy Lueders, associate administrator of NASA’s Human Exploration and Operations Mission Directorate, said in a news release.
I’m taking on a new mission, one that keeps my feet planted here firmly on Earth and prioritizes my most important crew – my family. I’ll still be working hard with the #Starliner team and the @NASA_Astronauts on our crew. pic.twitter.com/PgdhPqwYQS
— Christopher Ferguson (@Astro_Ferg) October 7, 2020
The other astronauts due to make the trip to the International Space Station next year are NASA’s Mike Fincke and Nicole Mann. Fincke joined the crew last year when NASA astronaut Eric Boe had to bow out due to unspecified medical reasons.
Ferguson had been looking forward to his Starliner trip for years. He joined Boeing soon after his final shuttle flight in 2011 and played a high-profile role in the Starliner effort — going so far as to help CBS late-night host Stephen Colbert try on Boeing’s spacesuit in 2017.
If the development timeline for Boeing’s CST-100 Starliner had been glitch-free, Ferguson and his crewmates might well have been in space by now. But last December, an uncrewed demonstration flight to the space station went awry due to software problems. As a result, NASA and Boeing had to pass up the station docking and end the flight early.
Meanwhile, SpaceX was able to proceed with the first crewed flight of its Crew Dragon capsule in May, beating Boeing to the punch.
After a months-long investigation, NASA and Boeing decided that another uncrewed test mission would have to be flown at Boeing’s expense. That mission is expected to take place late this year or early next year. If all goes well, a crewed flight will follow in mid-2021.
Ferguson said he has “full confidence in the Starliner vehicle, the men and women building and testing it, and the NASA astronauts who will ultimately fly it.” And he hinted that he wouldn’t mind getting another chance to go into space once he takes care of his family obligations.
“I’ve been asked what this means long-term: Does it mean that I’m leaving or does it mean that I’m staying and I just can’t do this,” he told Space News. “I just cannot launch next year. You can read into that as you see fit.”