Boeing: Peace Eagle AEW&C Delivery is Scheduled in 2013
Defence Turkey: How was 2012 as Boeing Defence? What are your plans for 2013 and beyond?
2012 was a positive year for our defence business, with revenue reaching $32.6 billion and operating margins of 9.4 percent. Backlog at Boeing Defence, Space & Security was $71 billion, more than two times projected 2013 revenue. Partnering with customers for affordable solutions to their requirements continues to be our strategy’s central principle. That strategy works because of the commitment, creativity and innovation of our people.
Military derivatives of commercial airplanes exemplify the unique Boeing value proposition. The KC-46 tanker and the P-8 maritime patrol aircraft are among the most important programs for customers worldwide. Those stem from the Boeing 767 and 737 commercial airplanes, respectively, leverage commercial technologies, and will be built on the same production lines as their commercial siblings.
There’s a nearly $3 trillion global defence, space and security market during the next decade. We are highly competitive across its major segments, including: Military aircraft, Satellites and space, Services and support, C4ISR and cyber, Life cycle and networked solutions...
A large part of that market is outside the U.S., where Boeing has long-term customer relationships and substantial business success. We expect at least 30% of our defence, space and security revenue to come from customers outside the U.S. We will achieve that by becoming a truly global enterprise, developing more partnerships, presence, and talent across the globe.
In the end, our future will be shaped by our performance, satisfying our customers, expanding our core, and succeeding in new markets. What we do today will define Boeing Defence, Space & Security for a generation to come.
Defence Turkey: What is the latest status of “Peace Eagle” project (AEW&C - Airborne Early Warning and Control Aircraft)? Is it possible to hear good news in 2013?
We have completed verification testing for Peace Eagle No. 1. The remaining activities include review and approval of the test reports by the Turkish customer plus final acceptance testing. Delivery is scheduled for 2013.
Defence Turkey: Turkey has been conducting studies for the manufacturing of a regional aircraft for a while. How do you consider this project as Boeing? Would you make a proposal to Turkey in this respect in the forthcoming period?
Several countries have serious plans underway to develop regional commercial aircraft. We fully respect these ambitions and welcome the competition it will bring to the market.
Defence Turkey: How do you think the budgetary cuts encountered in USA and Europe would affect the global aerospace and defence companies in medium and long terms? Do you think the product-based new partnerships and programs to be established with countries having steady growths like Turkey would be an opportunity especially in creating new markets?
It is clear that defence budgets have been consistently declining in many Western countries, including the US and the EU. Yet the threats endure, so we believe that we can be competitive in the global security marketplace by offering products that meet defence needs while being affordable under current and future budgets. As I mentioned earlier, Boeing’s strategy is focused in growing its international defence business and we expect at least 30% of our defence, space and security revenue to come from customers outside the U.S. We intend to achieve this objective by becoming a truly global enterprise, increasing our presence and developing more partnerships across the globe.
Defence Turkey: What kind of R&D and training programs are you conducting with the Turkish universities?
This year in February, we signed a Memorandum of Understanding (MoU) with Istanbul Technical University (ITU), to launch joint research and development programs to benefit the flying public. We announced our first joint project: a one-year effort to research and develop an advanced air-filtration system to enhance air quality for passengers in commercial airplane cabin environments.
We are very pleased to establish a new research partnership with Istanbul Technical University, one of Turkey’s finest institutions of higher learning. We believe our collaboration with ITU will bring innovative ideas to our company and support Turkey’s goals for economic and technology development.
In their research, Boeing and ITU will explore the effectiveness of specially treated nano-fibers to further remove volatile organic compounds from the airplane cabin.
On the other hand, we have been sponsoring the VTOL aircraft Project of Middle East Technical University’s Aviation Department since 2012.
Also last year, we sponsored 7 Boğazici University students to attend a three-month exchange program of Washington State University in Seattle –an initiative we will continue this year. We have also been sending students from different universities to a six-month internship program at Boeing facilities in Seattle. So far, we have sponsored a total of six students from Boğazici University, Middle East Technical University and Istanbul Technical University and we will send three more students in August.
Defence Turkey: Boeing has been conducting many social responsibility projects in Turkey. Could you please brief us on such projects from past to present?
Boeing has long demonstrated a global commitment to supporting communities where our people live and work. Only months after Boeing opened its first office in Ankara, in August 1999, Turkey was rocked by a devastating earthquake. In cooperation with Turkish Airlines, Boeing brought in a medical team with enough supplies to treat 10,000 people. Our support also included relief materials, dialysis machines and financial aid. Indeed, the company’s vigorous earthquake response effort set the theme for Boeing’s corporate citizenship in Turkey.
In 2002, when we launched our formal international corporate citizenship program, we took a broader view and identified a range of projects to address some of the country’s most important needs. Primary education was given the greatest emphasis, but we found much more could be done.
If we look at health and human services, Boeing Turkey is active in the field of neonatal care, supplying incubators for premature babies and other equipment to seven children’s hospitals. Boeing is also involved in an early learning program involving parents to get their 5-year-old children ready for school.
Boeing also sponsors two archeological digs in Turkey. The Catalhoyuk excavation in Konya—a 9,000-year-old Neolithic site— has been sponsored by Boeing since 1999 and it was a great honor to see it becoming a UNESCO heritage site last year. Boeing also supports the Kaman-Kalehoyuk Excavation outside of Ankara, with funding for the archaeological museum, the laboratory facilities and for the Turkish university students who go there each summer during the digging season.
Boeing looks to the future by serving as a founding co-sponsor of Space Camp Turkey, located in Izmir. For more than 10 years, the company has been sending students, aged 7 to 16, to participate in the camp’s programs. Space-themed activities include virtual flight, sky observation, a space shuttle mission, and making and launching a single-stage rocket. Boeing has provided scholarships to almost 400 students within the Space Camp program since 2001.
Since 2000, Boeing Turkey has completed 189 corporate citizenship projects in 40 cities. In addition to education, the company has worked in the areas of arts and culture, and health and human services. More than 135,000 children have benefited from this effort.
Turkey is a fast growing country, which has clearly become self-sufficient in many fields of life. Therefore, I believe our social responsibility projects should focus on more complex and progressive targets. In addition to providing physical facilities like school buildings, laboratories etc, we are also exploring to share more know-how and experiences that can contribute to the acceleration of society’s development and modernization. In this context, the fields of education, health, art and culture, and human services are critical fields. Boeing Turkey is going to contribute to these fields in a more advanced manner by realignment of our corporate citizenship projects in the field of education and creating a program which is more relevant to our stakeholders and more in line with supporting the needs of the expanding aerospace sector.
Defence Turkey: You, as Boeing, have been in close cooperation with sub-industry companies in Turkey for years. What kind of works being performed by the Turkish sub-industry companies for Boeing?
Boeing has been cooperating with the Turkish aerospace industry in commercial and military aviation programs for many years, providing the right solutions and sharing know-how. Major programs carried out by Boeing in Turkey in the defence area include Peace Eagle and Missile Defence. Several Turkish defence companies work for the Peace Eagle (AEW&C) program, including Selex, TAI, THY, Havelsan, Ayesas, Aselsan and Mikes.
Other defence programs involving Turkish industry are the NATO AWACS mid-term upgrade and the Peace Eye program, where TAI won a contract for fabrication and assembly of parts for the Boeing produced Korea AEW&C. Also, Fokker Elmo manufactures wire harnesses for a variety of platforms in their new Izmir facility.
TAI and Kale have participated in all Boeing commercial airplane programs since 1997. In addition, PFW supplies parts for the 787 program and THY Technic provides technical and maintenance services for several Boeing commercial aircraft models.
Recently Boeing recognized Kale Aero with a Boeing Performance Excellence Award (BPEA) for 2012, for outstanding support of Boeing through non-destructive testing, coating and painting, and structural parts manufacturing of fuselage and wing components. Kale Aero is the first Turkish supplier to win an excellence award from Boeing. We deeply appreciate the high quality work they perform for us and the extremely high standards to which they adhere. Our relationship with Kale Aero spans for more than 10 years and we hope to strengthen this successful collaboration in the future.
Boeing’s support also facilitated the establishment of new facilities in Free Trade Zones: PFW (ESBAS), Fokker Elmo (ESBAS) and Kale (DESBAS).
Some of these key Boeing international suppliers and others such as Alenia and Spirit Aero are also investing and placing work packages in Turkey.
The success of long-term partnerships furthers the growth of technology, know-how and employment at these companies and Boeing programs directly support around 1,000 jobs in Turkey.
