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Boeing is moving its HQ from Chicago to Virginia

More than two decades after the Boeing Co. moved its headquarters from its Seattle birthplace to Chicago, the aerospace giant is planning to do it again — this time, heading for Arlington, Va.

Boeing confirmed a report about the move that appeared today in The Wall Street Journal. Arlington already serves as the headquarters for Boeing’s defense, space and security business unit, and the company said it would develop a new research and technology hub in Northern Virginia.

“We are excited to build on our foundation here in Northern Virginia,” Boeing’s president and CEO, Dave Calhoun, said in a news release. “The region makes strategic sense for our global headquarters given its proximity to our customers and stakeholders, and its access to world-class engineering and technical talent.”

Boeing didn’t provide a timetable for the HQ switchover.

The move to Arlington in the Washington, D.C., area reflects a classic corporate strategy to have the company’s executive offices close to where the federal government’s purchasing decisions are made.

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Boeing hires three giants to build its billion-dollar cloud

The billion-dollar competition to provide Boeing with cloud computing services is finished, and the winner is … a three-way split. Amazon Web Services, Google Cloud and Microsoft are all getting a share of the business, Boeing announced today.

In a LinkedIn post, Susan Doniz, Boeing’s chief information officer and senior VP for information technology and data analytics, called it a “multi-cloud partnership.”

“This represents a significant investment in the digital tools that will empower Boeing’s next 100 years,” she wrote. “These partnerships strengthen our ability to test a system — or an aircraft — hundreds of times using digital twin technology before it is deployed.”

Doniz said that becoming more cloud-centric will provide Boeing with “global scalability and elasticity without having to predict, procure, maintain and pay for on-premises servers.” Financial details relating to the multi-cloud partnership were not disclosed.

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‘Downfall’ recounts 737 MAX mess as a tech tragedy

The missteps traced in “Downfall: The Case Against Boeing” — Netflix’s new documentary about Boeing’s troubled 737 MAX jet — are the stuff of Greek tragedy.

Under the direction of filmmaker Rory Kennedy, the youngest child of Robert F. Kennedy, “Downfall” recounts how the aerospace giant cut corners in a race to compete against Airbus, and pressed mightily to minimize the known problems with a computerized flight control system that was capable of causing the 737 MAX to go into a fatal dive.

The result? Not just one, but two catastrophic crashes — first in Indonesia, in 2018, and only months later in Ethiopia. The combined death toll amounted to 346 people. The jets were grounded for nearly two years while Boeing worked on a fix to the control system.

When the Indonesian crash occurred, the root cause seemed to be shrouded in uncertainty. But subsequent investigations showed that Boeing knew the cause had to do with tweaks in an automated software routine known as the Maneuvering Characteristics Augmentation System, or MCAS.

In the early stages of those investigations, I struggled to explain what MCAS was supposed to do (keep planes from stalling under extreme conditions) and what it ended up doing (forcing planes into a dive). “Downfall” uses graphics and re-enactments to show how MCAS and other points of failure on the 737 MAX figured in the tragedy.

The film also lays out evidence from emails and other documents showing that when the 737 MAX was undergoing certification for flight, Boeing was desperate to avoid providing pilots with extra training, at extra cost — so desperate that the company hid the MCAS software’s capabilities from pilots, airlines and regulators.

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Boeing satellite internet cleared for takeoff

The Federal Communications Commission has authorized Boeing to put 147 satellites in orbit for a broadband internet constellation, adding to a list of competitors including Amazon, OneWeb and SpaceX.

Boeing’s constellation was proposed in 2017, but it took four years for the FCC to iron out the technicalities surrounding the plan. Most of the satellites will circle the globe at a height of about 650 miles. Fifteen of them will go into highly inclined orbits at an altitude between 17,000 and 27,500 miles.

To comply with requirements laid out in the FCC’s order, half of the satellites must be launched by 2027, with the rest in place by 2030.

Boeing’s aim is to provide high-speed satellite data services to consumers on a global basis — echoing the goals set for SpaceX’s Starlink service, OneWeb’s constellation and Amazon’s Project Kuiper, among others. SpaceX is currently leading the pack by providing limited service via more than 1,600 satellites. OneWeb is due to begin limited service this winter, and this week, Amazon asked the FCC to authorize the launch of its first two prototype satellites next year.

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Blue Origin leads team for ‘Orbital Reef’ space outpost

Jeff Bezos’ Blue Origin space venture is joining forces with Colorado-based Sierra Space and a host of other partners, including Boeing, to propose building a space-based “mixed-use business park” called Orbital Reef.

The plan, announced today at the International Astronautical Congress in Dubai, is among about a dozen proposals being submitted to NASA for a share of development funds under a program aimed at preparing the way for replacing the International Space Station.

If Blue Origin and its partners follow through on the plan, the basic version of Orbital Reef would be in low Earth orbit sometime during the latter half of the 2020s — in time for an orderly transition from ISS operations. That version would include power-generating capability, a core module with picture windows looking down on Earth, a habitat provided by Sierra Space and a Boeing-built science lab.

Blue Origin’s senior vice president of advanced development programs, Brent Sherwood, told me that Orbital Reef would cost “at least an order of magnitude less” than the International Space Station. The development cost for the International Space Station is typically estimated at $100 billion, which would imply a cost in the range of $10 billion for Orbital Reef.

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Starliner’s next flight to orbit will slip into 2022

Boeing says its next attempt to send an uncrewed Starliner space taxi to the International Space Station will take place no earlier than the first half of 2022, due to the time needed to fix a valve problem that led to the last-minute cancellation of an August test flight.

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U.S. and Europe call a truce in Boeing-Airbus battle

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.”

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Cloud titans reportedly battle for Boeing’s business

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.

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Boeing ex-CEO’s new tech venture raises $240M

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.

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$25 million to be paid in drone whistleblower case

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.”