“Under Steve’s leadership, our defence business has stabilised its operations, improved programme execution, and strengthened relationships with our customers. With proven experience in manufacturing and programme management, combined with his focus on developing people and building a strong culture, Steve is a leader who exemplifies the best of Boeing,” Boeing CEO Kelly Ortberg said in a statement.

Taed Colbert, who left Boeing in September, is replaced by Steve Parker as the company’s defence chief executive. In his capacity as COO of the defence unit from 2022 to 2024, Parker collaborated closely with Colbert and managed business operations. This position placed Parker in a unique role to address manufacturing problems and supply chain difficulties that had resulted in billions of dollars in cost overruns on several fixed-price Boeing defence contracts.

When President Donald Trump declared that Boeing’s F-47 had won the Air Force’s sixth-generation fighter programme, Steve Parker was in the driver’s seat, having been interim leader of Boeing’s defence business since Colbert’s departure. The contract was viewed as potentially pivotal for the future of Boeing’s defence division, which has depended on lucrative legacy programmes like the F-15 and F/A-18, while more recent programmes like the T-7 and KC-46 continue to face budgetary and schedule challenges.

Steve Parker’s promotion to permanent CEO follows yet another significant change in Boeing’s leadership. Boeing said that Jay Malave, a former CFO at Lockheed Martin, will replace Brian West as the company’s new finance chief on August 15.

Meet Steve Parker

Steve Parker is the vice president and general manager of Boeing’s Defence, Space, and Security division, a crucial part of the business responsible for satellite systems, military aircraft, and space exploration. Parker is one of Boeing’s top executives and manages the creation of innovative defence and aerospace technologies. Under his direction, Boeing will remain a significant force in the military and commercial aerospace industries, with an emphasis on advancing national security via cutting-edge systems and technology.

His highly technical career in the aerospace and defence industries began when Parker graduated from the University of Alabama with a Bachelor of Science in Aerospace Engineering. He had a solid engineering background, which prepared him for challenging engineering and management positions at Boeing. His academic background has given him a thorough awareness of the technological difficulties and advancements required in the defence industry, allowing him to succeed in his line of work.

In his early years at Boeing, Steve Parker worked in a variety of engineering and management roles in different departments, which gave him a thorough understanding of the business’s operations. He was a logical choice for the Defence, Space, and Security division because of his extensive familiarity with Boeing’s offerings and corporate culture. In this role, he has had the chance to oversee important military and civilian projects. Through these experiences, he was able to acquire the technical know-how and strategic thinking required for his current leadership position.

In Parker’s present position, he manages several Boeing space and defence initiatives. These include space exploration technologies, missile defence systems, satellite communications, and military aircraft. Several well-known projects, including the F/A-18 Super Hornet, the modernisation of the B-52 Stratofortress, and the V-22 Osprey tilt-rotor aircraft, have been undertaken by Boeing under his direction. He has also been instrumental in Boeing’s collaborations with NASA and the United States Department of Defence, helping to develop space exploration programmes and satellite systems for military and commercial uses.

Appointment Comes At A Crucial Time

Revenue in Boeing’s Defence, Space & Security (BDS) business has grown by 10% year-over-year in the second quarter of 2025, alongside improvements in operating margin and gains in backlog. BDS revenue in Q2 was USD 6.6 billion. The segment posted USD 110 million in earnings from operations, compared to a loss of USD 913 million in the same period in 2024.

Operating margin was 1.7% during the quarter, compared to -15.2% in the same time last year. According to CFO Brian West, BDS is working toward the goal of reaching high single-digit margins. Stock performance is stabilising on 25% of the portfolio, which includes satellite programmes and fighter aircraft.

BDS delivered two satellites during the quarter — two O3b mPOWER satellites, delivered to SES — while its backlog grew to USD 74 billion. Boeing reports that 22% of the BDS backlog represents orders from customers outside the United States.

Boeing also highlighted the recent USD 2.8 billion contract awarded by the US Space Force Space Systems Command (SSC) to build the first two Evolved Strategic Satcom (ESS) satellites for space-based nuclear command and control and communication.

However, Parker’s role will be crucial in settling another dispute. More than 3,000 unionised employees at BDS sites near St. Louis, Missouri, voted to reject the offer on 27 July, thereby gearing up for a potential strike. As per the International Association of Machinists and Aerospace Workers (IAM), the strike can begin on 4 August after a seven-day cooling-off period.

IAM members at sites in St. Louis and St. Charles, Missouri, complete work on all of Boeing’s fixed-wing tactical aircraft, including the F-15EX and F/A-18E/F fighters and the T-7A trainer. A newly opened assembly line in nearby Mascoutah, Illinois, which handles production of the nascent MQ-25 uncrewed refueller, is also covered by the IAM vote.

Several munitions production lines and Boeing’s Phantom Works advanced projects unit are also in St. Louis. The aviation giant has told FlightGlobal that 3,100 employees across those product lines are now covered by the bargaining unit and moving toward a shutdown.

“The proposal from Boeing Defence fell short of addressing the priorities and sacrifices of the skilled IAM Union workforce. Our members are standing together to demand a contract that respects their work and ensures a secure future,” the labour group said. Union leaders had earlier recommended that members approve the offer from Boeing, describing it as a “landmark” agreement on 24 July.

IAM has not revealed the issues driving members to reject the proposal, saying only that negotiators plan to return to the table with Boeing to deliver “meaningful improvements that support the well-being and livelihoods of IAM members.”

The looming strike comes several months after Boeing secured a massive contract with the US Air Force to develop the F-47 Next Generation Air Dominance fighter, a deal worth hundreds of billions of dollars over decades. Boeing also invested nearly USD 2 billion in constructing a classified fighter production factory at its St. Louis campus. The latest strike threat demands Steve Parker’s intervention, given that the aerospace giant endured a 53-day work stoppage in 2024 — a disruption that cost the airframer some USD 5.5 billion, forcing it to shutter its 767 and 777 production site in Everett and its 737 assembly facility in Renton.

According to analysis from the Anderson Economic Group, aerospace industry suppliers that provide components to Boeing suffered USD 2.3 billion in losses from the disruption.

Image Credits: Boeing

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He was instrumental in advancing the development of Wisk’s Generation 6 aircraft while he was Senior Vice President of Engineering and Programmes. He oversaw the coordination of hardware and software engineering, flight and systems testing, simulation, and autonomy, among other important technological areas.

His hiring comes at a critical time for Wisk as the company moves forward with its certification process and prepares its Gen 6 aircraft for flight. Wisk’s long-term objectives and Sebastien Vigneron’s in-depth understanding of the aircraft development lifecycle put him in a strong position to guide the business as it moves closer to commercial launch.

Former Wisk CEO Yutko will join Boeing Commercial Airplanes as Vice President of Product Development. Yutko will continue to oversee strategy and keep Boeing and Wisk in a supportive relationship in his new role.

Wisk, a separate company owned by Boeing, is dedicated to achieving its goal of becoming the first autonomous aircraft to carry passengers in the US market. For the company’s innovative aspirations in the future of air travel, the leadership change signifies both continuity and new impetus.

Who Is Sebastien Vigneron?

Born and reared in France, Sebastien Vigneron initially became interested in technology and engineering. He studied aerospace engineering to further this interest, graduating from one of France’s top engineering schools. His education prepared him for a career in the aerospace industry, where he has established himself as a leader who prioritises strategy, innovation, and operational excellence.

Early in his career, Vigneron worked for a number of well-known aerospace firms, including Airbus. He specialised in the creation and administration of intricate engineering projects while gaining experience in a variety of technical and leadership capacities. Vigneron held executive positions at a number of other aerospace and aviation-related businesses before joining Wisk as CEO. He worked on projects involving aircraft systems, engineering design, and strategic development. Vigneron spent the early part of his career, six years in total, at Dassault Aviation, where he worked on the Falcon 5X, 6X and 7X programmes, including as aerodynamics group lead.

Then he moved to Bombardier in 2011, where he spent eight years and contributed to the CSeries (now called the Airbus 220) commercial aircraft programme and Bombardier’s Global business-jet programmes. Under his watch, Bombardier achieved the Global 7500’s certification in 2018. Vigneron then took a job with Virgin Hyperloop, which had been developing a high-speed passenger transportation system involving a magnetically levitated vehicle travelling inside a tube.

Sebastien Vigneron was in charge of spearheading new business endeavours, alliances, and technological developments at a large aerospace company prior to joining Wisk as the Executive Vice President of Strategy and Innovation. Among the advanced aviation technologies he has contributed to are electric and autonomous flight systems. As the leader of Wisk, a company dedicated to the development of electric vertical take-off and landing (eVTOL) aircraft for urban air mobility, Vigneron was a perfect fit due to his extensive knowledge of both aerospace engineering and business strategy.

He also led aerodynamics for that company’s supersonic business jet research programme and contributed to the Solar Impulse programme to develop a solar-powered experimental aircraft, a project that spurred Vigneron’s interest in innovating new types of aerospace products.

It is anticipated that Vigneron’s leadership will be crucial to developing Wisk’s autonomous flight technology and introducing cutting-edge air transportation options to international markets. Vigneron has established himself as a pivotal figure in the quickly developing field of urban air mobility thanks to his long aerospace career and strategic vision.

Certification Challenge Lies Ahead

Sebastien Vigneron believes he has the aircraft-development experience needed to lead the company’s transition into the critical phase of flight testing and certification.

“I have 20 years of experience developing new aerospace products, in the US, in Canada, in Europe. I have covered the entire product-development life cycle, from a clean sheet… through detailed design, build, test, certification, entry into service,” he told FlightGlobal.

Talking about his leadership style, Vigneron remarked, “I bring a good blend of the rigour and discipline of aerospace product development and \[of] certification… I am able to navigate both sides of that world, and I’m able to maintain the right balance. I always assume good intent, and I believe in the people. I work for my team. I support my team. And I do everything I can so that they can be successful.”

Stating that the CEO transition does not reflect any shift to Wisk’s broader strategy, Vigneron noted, “The mission is not changing. The game plan is not changing.”

Wisk has flown several eVTOL designs in recent years but is now inching closer to beginning flight tests of its Gen 6 prototype, the variant it aims to bring through certification. The new CEO said that the company is eyeing the upcoming summer for the first flight of the prototype while certifying the eVTOL before the end of the decade.

The Gen 6 air taxi will carry four passengers, have 78nm (145km) of range, fly at 110-120kt (204-222 km/h), and charge in 15 minutes. The eVTOL will come equipped with fixed wings and 12 propellers mounted in pairs on wing-mounted booms. All 12 propellers produce lifting thrust, while the forward six props also rotate to provide forward thrust. While pilotless, the air taxis are monitored by humans on the ground.

While there are questions about whether the battery technology has advanced sufficiently to enable high-frequency, taxi-like flights, Vigneron insists the electric-propulsion technology is up to the task.

“I was very much attracted by the prototyping mindset, pushing the boundaries, bold innovation, quick iteration, learning by doing,” says Vigneron. Like other eVTOL developers, Wisk faces a tall task in bringing an aircraft as novel as its Gen 6 through certification. However, the company and its competitors at least now have a roadmap, as the Federal Aviation Administration in 2024 issued both a rule defining air taxi operational and pilot-training requirements and an advisory providing guidance for certificating air taxis under existing airworthiness regulations.

“It’s laying out the path for certification… It’s all going in the right direction. The principles we need to follow exactly, and the methodology, is the same. How do we show compliance to those things? That’s where the challenge is,” Sebastien Vigneron noted.

And while regulators have never approved types like eVTOLs before, Vigneron says the certification process, specifically the certification “guiding principles,” is the same as for conventional aircraft. The company’s system integration test rigs are “firing on all cylinders,” said Vigneron, while adding, “We are deep into the weeds of safety-of-flight testing right now.”

Wisk is also conducting aerodynamic evaluations of a subscale Gen 6 model at Boeing’s V/STOL Wind Tunnel facility in Philadelphia. Those wind-tunnel tests will last several months, Vigneron said, while adding, “We are going to be doing a lot of endurance testing, durability testing… We need to get a lot of hours under the belt.”

Wisk operates “completely independently from Boeing” but has access to some of the aerospace giant’s resources, such as the wind-tunnel facility, Vigneron said. Wisk has also been leveraging Boeing’s manufacturing capabilities in Seattle and in the Mesa area for so many different components.

“We are exploring new ways of doing product development, new ways of running a development programme. We bring all those learnings back to Boeing, and that’s why the connection with Boeing product development makes sense. We are learning from each other,” Vigneron concluded.

Most of Wisk’s competitors, Joby Aviation, Archer Aviation, Eve Air Mobility, and Beta Technologies, are developing air taxis that will, initially at least, be controlled by an onboard human pilot. However, Wisk is undertaking the more ambitious goal of developing and certifying an autonomous air taxi from the start.

Sebastien Vigneron sees autonomy enabling air taxis to be economically viable, where operators will not incur the cost of employing pilots, with pilotless aircraft having room for one more paying passenger.

Image Credits:muraena.ai

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As the aviation industry is facing the challenge of rapidly reducing carbon emissions from its operations, JetZero is hoping to stand up to the occasion by offering a blended wing design, in which the wings merge seamlessly with the curvaceous fuselage, leading to as much as a 50% reduction in fuel burn per passenger mile as a result of lower drag. The company has already received a USD 235 million contract from the United States Air Force to develop its tech demonstrator. In March 2025, JetZero announced a partnership with Delta Air Lines under which the carrier would help with the design and development of the aircraft.

JetZero is gearing up to seek private equity funding for billions of dollars needed to bring its aircraft to market. The start-up is also expected to announce a site selection for its final assembly plant before the Paris Air Show that begins in June 2025. Today’s episode of “Start-up of the Week” will see International Finance talking about the venture in detail.

Shaping The Future

JetZero’s airliner is dubbed the Z4. It is a 250-passenger, 5,000nm design for the so-called “Middle of the Market” segment, currently occupied by out-of-production and ageing Boeing 767-300ERs, Airbus A330-200s, and a limited number of Boeing 757s. Eyeing a service entry by the early 2030s, the first flight of the demonstrator aircraft is planned for 2027.

JetZero has an ambitious goal of producing composite aircraft. The final assembly site will be on a 1,000-acre site with a building about the size of Boeing’s widebody plant in Everett. The start-up is planning for a monthly production rate of 20 five years after production begins, with conditional orders from major airlines like United and Delta making the news.

JetZero was founded in 2021 by aviation legend Mark Page and start-up veteran Tom O’Leary. In early 2024, the company expanded into a 285,000 ft², seven-building headquarters, housing several crucial departments such as the design team, cabin lab, fabrication shop, scale model programme, and aero labs. In addition, JetZero professionals are working remotely in support of the programme throughout the United States, securing the supply chain in the process while scouting more customers and business partners.

The start-up has a few daunting tasks to take care of. Some of them are engine commitment for the aeroplane, a product support system, finalising the method to produce the composite aeroplane, “flying” the iron bird, and much more. In March 2025, RTX’s Pratt & Whitney and Collins Aerospace entered into three agreements with JetZero to provide key systems for the airframer’s full-scale demonstrator. Pratt & Whitney will integrate the PW2040 engine and auxiliary power unit (APU), and Collins Aerospace will provide the nacelle and propulsion mounting structure. Pratt & Whitney and Collins Aerospace are RTX businesses.

Another American biggie, Alaska Airlines, in 2024 invested in JetZero. The investment, which includes options for future aircraft orders, was made through Alaska Star Ventures (ASV), the airline’s investment arm whose purpose is to influence the future of the aviation industry. ASV is focused on identifying and enabling the technologies that can help Alaska reach its ambitious goal of net-zero carbon emissions by 2040. This initiative is part of Alaska’s comprehensive sustainability strategy along with operational efficiency, fleet renewal, sustainable aviation fuel, waste reduction, and electrified aircraft.

Meet The Aircraft

JetZero envisions its aircraft to be a “Multi-Use Platform,” bringing a whole new experience within the existing airline and airport infrastructure. Using the “One Plane, Many Routes” approach, the aircraft will serve everything from single-class short-haul to four-class international. On top of that, airlines will be able to reduce up to half of the fuel cost, saving millions per plane per year, thereby ensuring uninterrupted growth. The Z4 will also come with stress-free boarding, faster turn times, dedicated overhead storage, and more personal space in every passenger class.

The freighter version of the aircraft will maximise the current airport and cargo infrastructure, as the Z4F will not require additional investment by shippers. The same containers and better route economics will meet the growing demand for just-in-time delivery. At the same point in time, the economics of the all-wing design will enable a freighter that is more efficient than long-range widebody freighters and competitive for shorter-range missions as well. With air cargo set to grow 70% over the next 20 years, the Z4F offers cost-efficient growth for multiple air shipping routes.

The military version of JetZero’s aircraft will compete for the United States Air Force’s long-range operational requirements as an advanced refuelling tanker that will have a 5,000 nmi range, higher capacity tanks, and a 45,000 ft service ceiling. The military variant, KC-Z4, will serve Washington and its allies as the most fuel-efficient platform while significantly improving combat capabilities operating from an extended range of airfields.

As mentioned before, Pratt & Whitney and Collins Aerospace entered into three agreements with JetZero to provide key systems for the airframer’s full-scale demonstrator earlier this year. Under the arrangement, Pratt & Whitney will integrate its PW2040 engine.

The PW2000 engine family is known for offering 37,000 to 43,000 pounds of thrust and powers all models of the Boeing 757 aircraft, with the F117 military derivative engine serving as the exclusive power plant for the C-17 Globemaster III aircraft. The PW2040 model engine also powers the US Air Force’s C-32A aircraft, the military version of the 757. The military version will use the PW2000 engine.

Pratt & Whitney’s Canada division will provide the APS3200, an APU that employs the latest in advanced manufacturing techniques, including the use of composites, while Collins Aerospace will design and build nacelle structures including the inlet, fan cowl, and fan duct, in addition to fairings and the engine support structure. Collins has designed, certified, and manufactured nacelles for large commercial aircraft programmes for decades, including the Boeing 787, Airbus A350, A320neo, A220, and Embraer E2.

The Z4 programme looks firmly set for its demonstration flight in 2027. Under the “Pathfinder” programme, JetZero is using scaled aircraft to refine things further. The start-up marks this process as an “iterative” one, where digital tools do all the heavy lifting. The full-scale demonstrator is being built in partnership with Scaled Composites, a subsidiary of the American multinational aerospace and defence company Northrop Grumman.

Last but not least, during the test flights, JetZero will incorporate its customers’ feedback (United Airlines and Alaska Airlines) to refine the design further, thereby significantly increasing the pace of the aircraft’s service entry into the market.

State-of-the-art tools are enabling the start-up’s Long Beach-based campus to log thousands of flight hours before the demonstrator ever takes to the skies. Understanding the innovative aircraft’s requirement for a reliable flight control system to ensure a safe and smooth flight, Thales will help JetZero’s efforts by providing its “Fly-by-Wire” flight control solution that has been field-proven for over 40 years and installed on board more than 12,000 aircraft.

The solution offers substantial benefits in terms of flight safety, aircraft performance, reliability, and availability. Those benefits encompass flight envelope protection, reduced pilot workload, minimised aircraft weight, improved handling qualities, and reliability.

Image Credits: JetZero`

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Mubadala and its subsidiaries invested USD 29.2 billion in 2024, up from USD 17.5 billion in 2023, Reuters reported citing the preliminary data from research company Global SWF. That accounted for nearly 20% of the USD 136.1 billion spent globally by sovereign wealth funds, while the PIF’s investments declined by 37% to nearly USD 20 billion in 2024, down from USD 31.6 billion in 2023.

In October 2024, the PIF governor Yasir Al-Rumayyan said the fund plans to reduce its foreign investments to around a fifth of its total assets under management and will focus on domestic funding and artificial intelligence. The UAE, Qatar, and Saudi Arabia sovereign funds, meanwhile, invested a record USD 82 billion in 2024, a more than 10% rise from the previous year.

While Canada’s Maple 8, Singaporean funds, and Australian superannuation funds were more active last year than in 2023, they remained below the peaks in 2021 and 2022. Globally, sovereign funds’ assets under management (AUM) rose by 6.1% in 2024 to USD 13 trillion, while public pension funds’ AUM grew by 6% to USD 25 trillion.

Established in 2017 by the merger of Mubadala Development Company (now Mamoura Diversified Global Holding) and the International Petroleum Investment Company, Mubadala Investment Company, or Mubadala, is based in Abu Dhabi. As of January 2025, the sovereign wealth fund manages a diverse portfolio of assets and investments in the UAE and abroad, with its assets under management (AoM) being valued at more than USD 300 billion.

Mubadala’s diverse portfolio spans over 50 countries across sectors including retail, clean energy, self-driving cars and AI technology. In the UAE, the sovereign wealth fund owns or has invested in companies including Aldar Properties, Emirates Global Aluminium, First Abu Dhabi Bank (FAB), G42, Masdar, Tabby and Yahsat. Internationally it owns or has invested in Turkey’s Getir, Global Foundries and Waymo in the US, CityFibre in the United Kingdom and Jio Platforms and Tata Power Renewables in India.

Mubadala has announced plans to invest significant capital into healthcare, artificial intelligence, space technology, digital infrastructure and the Asian and US markets. Mubadala’s subsidiaries include the asset management company Mubadala Capital, Mubadala Technologies and Mubadala Energy.

The brilliant brain behind Mubadala’s meteoric rise has been its CEO Khaldoon Al Mubarak. This article will give a brief overview of the personality.

Who Is Khaldoon Al Mubarak?

Khaldoon Al Mubarak was born in the United Arab Emirates. He graduated from Tufts University in the United States with a degree in economics. His future career in business and finance, which would encompass a variety of industries like energy, healthcare, technology, and real estate, was made possible by his educational background.

In the Middle East, Khaldoon Al Mubarak is regarded as one of the most powerful businessmen. He has gained respect both domestically and abroad thanks to his adeptness in navigating intricate international markets and his strategic vision in making investments in a variety of industries. With the company now managing a portfolio valued at over USD 200 billion, Mubadala’s assets have increased dramatically under his direction.

Al Mubarak is also renowned for his visionary leadership style, which frequently focuses on long-term plans that prioritise technological innovation, sustainability, and international collaborations. He is known for having a realistic approach to business, taking measured chances and looking for chances that fit with the UAE’s larger objectives for economic diversification.

His management style places a strong emphasis on the value of cooperation and fostering synergies between the public and private sectors. This has aided Mubadala’s expansion as well as the UAE’s overall economic prosperity.

Mubadala In No Mood To Slow Down

The French multinational aerospace and defence company Safran will be partnering with Mubadala to promote aerospace innovation and development in the UAE. This expanded strategic framework agreement, which was unveiled at the Abu Dhabi Air Expo in November 2024, emphasises the crucial domains of advanced materials, manufacturing, maintenance, human capital development, and space.

By combining Safran’s experience with Mubadala’s well-established aerospace assets, such as Strata Manufacturing and Sanad, this expanded partnership will aim to transform the aerospace industry. Through the collaboration, Sanad’s capabilities will be greatly increased, and new alliances across Safran’s varied aerospace portfolio will become possible.

To further enhance Mubadala’s wide range of aerospace products, the collaboration also intends to expand Strata’s current capabilities in the production of aircraft structures to include engine components.

Staying true to its plan of investing in the healthcare sector, the Emirati sovereign wealth fund acquired an 80% stake in Global Medical Supply Chain and Al Ittihad Drug Store from GlobalOne Healthcare Holding, the healthcare division of UAE-based Yas Holding.

The acquisition expanded Mubadala’s footprint in healthcare logistics and pharmaceutical distribution. Talking about Global Medical Supply Chain, the venture provides end-to-end supply chain services for medical products, including demand planning, procurement, logistics, inventory management, warehousing and maintenance. It serves more than 200 medical facilities across the UAE.

Al Ittihad Drug Store, on the other hand, distributes more than 1,000 pharmaceutical and consumer healthcare products from over 40 suppliers, covering multiple therapeutic categories such as anti-infectives, asthma, diabetes and oncology.

The wealth fund’s growing focus on the healthcare sector stems from the fact that research from investment banking advisory firm Alpen Capital predicts that healthcare spending in the Gulf region will reach USD 135.5 billion in 2027, implying an annual growth of 5% from USD 104 billion in 2023.

Al Mubarak’s Vision For Mubadala’s Future

The Abu Dhabi-based wealth fund will focus on investments across Asia in the coming days. Mubadala has invested USD 4 billion in India, including investments in billionaire and Reliance Industries’ boss Mukesh Ambani’s telecom and retail businesses, as well as Tata Power’s renewable energy unit. In September 2024, the Emirati Wealth Fund officially opened an office in Beijing to further strengthen the growing economic relations between the UAE and China.

Keeping in mind the tech-driven reality of the 21st century global economy, Mubadala will also have an artificial intelligence member as a consultant on its investment committee from 2025. It will incorporate AI in every aspect of its operational model, including corporate, administration, accounting and investment, Khaldoon Al Mubarak stated.

Mubadala, which has reached USD 330 billion of assets under management today, up from USD 200 million when it first started 20 years ago, is “zooming in” on key sectors that will be growing in the future including AI, technology, financial services, life sciences and healthcare, Mr Al Mubarak informed the media, while concluding that his venture is focussing on the private credit front as well, adding that Mubadala has an exposure to the asset class of almost USD 20 billion.

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During a quality crisis, Ortberg will take on the enormous challenge of restoring confidence with authorities, the business community, and the general public on August 8. The company’s finance chief has cautioned that it will continue to burn cash. A mid-air cabin panel blowout on an Alaska Airlines-operated 737 MAX 9 jet carrying 171 passengers on January 5 has left Boeing embroiled in a reputational and safety crisis.

The planemaker posted a loss of $1.4 billion on revenue of $16.9 billion, short of the consensus among analysts for USD 17.2 billion, according to LSEG data. It lost USD 2.90 a share, worse than expectations for a loss of USD 1.97 a share. Boeing CFO Brian West informed analysts that he anticipates cash burn in the third quarter of 2024 and that cash use will be higher than anticipated. USD 4.33 billion was used by the company in free cash flow during the second quarter during a conference call.

Board chair Larry Kellner announced he would not seek re-election and CEO Dave Calhoun decided to retire by year’s end following an executive reorganisation brought about by the company’s crisis.

Calhoun told analysts he did not think Ortberg’s arrival would lead to a big leadership overhaul at Boeing. Stephanie Pope, the head of Boeing Commercial Aeroplanes, was seen as a possible candidate to succeed Calhoun. Calhoun will be a special adviser to the board until March 2025, informed Boeing Chair Steve Mollenkopf.

Problems Galore Boeing

Shortly after the January 2024 accident, the United States Federal Aviation Administration (FAA) barred Boeing from raising the production of its cash-cow 737 MAX family of jets above 38 a month, without estimating how long the limitation would last. As per Brian West, Boeing had been making aircraft far below that level for some weeks to plug quality gaps.

Kelly Ortberg will now have to help revive production of the 737 jets from about 25 in June and July to 38 by 2024 end. He will receive a long-term incentive award targeted at USD 17.5 million, apart from getting an annual base salary of USD 1.5 million, an annual incentive award target of USD 3 million and a USD 1.25 million cash payment in December.

During the 2024 Q2, Boeing delivered a total of 92 aircraft, down 32% from 2023. It posted a loss of USD 2.33 a share, as its troubled defence and space business exacerbated the financial strain on the company. The Defence, Space and Security unit, one of Boeing’s three main businesses, lost billions of dollars in 2022 and 2023, which executives attributed to cost overruns on fixed-price contracts. Such contracts have high margins but leave defence contractors vulnerable to inflationary pressures that have dented US corporate earnings in recent years.

Meanwhile, the chair of the US Senate Commerce Committee, Senator Maria Cantwell, wants the FAA to conduct a thorough review into its oversight of Boeing and other manufacturers, raising serious questions about the government’s scrutiny of the planemaker.

She said the FAA in April 2024 disclosed that it had conducted a combined total of 298 audits of Boeing and Spirit AeroSystems over the prior two years that “did not result in any enforcement actions.”

Cantwell said that “a root cause analysis would ensure both Boeing and FAA have discovered the core causes of problems, rather than just symptoms.”

She wants the analysis “to identify any deficiencies in its oversight of Boeing and other manufacturers” and to “develop corrective actions and a plan for implementing them.”

After the Alaska Airlines incident, the FAA conducted a 737 MAX production audit into supplier Spirit and found multiple instances where the companies had failed to comply with manufacturing quality control requirements. FAA is already facing heat for being “too hands off” in oversight of Boeing.

The FAA’s approach before the mid-air incident was “too focused on paperwork audits and not focused enough on inspections,” FAA administrator Michael Whitaker commented recently, while adding, “We will utilise the full extent of our enforcement authority to ensure Boeing is held accountable for any noncompliance.”

Whitaker in February barred Boeing from boosting production of its best-selling plane. Whitaker also said the agency will continue to increase its on-site presence at Boeing and Spirit for the foreseeable future.

The National Transportation Safety Board (NTSB) earlier said that the door panel that flew off a Boeing 737 MAX 9 jet mid-flight was missing four key bolts and no paperwork exists for the removal of those bolts. Whitaker also confirmed no paperwork exists.

Boeing, meanwhile, has finalised a guilty plea to a criminal fraud conspiracy charge and agreed to pay at least USD 243.6 million after breaching a 2021 agreement with the US Justice Department. The planemaker allowed potentially risky work at its factories and did not ensure key aeroplane record keeping was accurate or complete, the Justice Department said as it outlined why it believed the planemaker had violated the 2021 deferred prosecution agreement.

In what seems to be a silver lining for the aviation giant, it has resumed deliveries of 737 MAX jets to China after a lengthy delay stemming from regulatory issues. The deliveries got delayed in recent weeks due to a Chinese regulatory review of batteries powering the cockpit voice recorder.

However, in the recently concluded Farnborough Airshow, Boeing got only 96 orders and commitments plus 22 options, much lower than the 356 orders it won at the Paris Airshow in 2023. Rival Airbus, on the other hand, pulled ahead of its American competitor, by securing 164 aircraft orders and commitments.

Who Is Kelly Ortberg?

The 64-year-old Ortberg began his career as an engineer at semiconductor maker Texas Instruments in 1983. Four years later, in 1987, he left to work as a programme manager at aircraft electronics supplier Rockwell Collins.

He was appointed CEO of Rockwell Collins in 2013 and oversaw United Technologies Corporation’s purchase of Rockwell in 2018. He became a member of the board of directors of Aptiv PLC after retiring in 2021 and is presently employed by a supplier of automotive technology. During his tenure at Rockwell Collins Ortberg also oversaw the company’s development programmes for Airbus A350 XWB, Boeing 787 and the Bombardier CSeries.

He also served as the former Chair of the Aerospace Industries Association (AIA) Board of Governors.

“There is much work to be done, and I’m looking forward to getting started,” Kelly Ortberg said after being appointed as Boeing’s CEO.

Kelly Ortberg’s recovery plans for the aviation giant will most likely be based in Seattle, near Boeing’s 737 MAX and 777 factories, which will be a step in the right direction, said Jon Holden, union local president for more than 30,000 Boeing workers who are negotiating a new contract, while interacting with the Reuters.

Holden also said that Ortberg needs the support of the International Association of Machinists and Aerospace Workers union “more than ever.”

“This is a strong and safe pick. We can appreciate Ortberg’s age may be higher than some investors would have liked to see. However, we believe Ortberg’s reputation at Rockwell Collins and United Technologies/RTX is strong,” RBC Capital Markets analyst Ken Herbert said in a note.

Kelly Ortberg’s experience in integrating acquisitions such as steering Collins through an USD 8.3 billion deal to purchase BE Aerospace in 2016 will face a fresh test at Boeing. The latter is working to integrate Spirit AeroSystems into its fold after clinching a deal earlier in 2024 to buy back the fuselage maker.

High Hopes From The New Boss

Kelly Ortberg will have to strengthen relations between Boeing and its airline customers, and earn trust with the regulators and lawmakers.

“While we hold Kelly in high regard, we note that it has been some time since he was a public company CEO, and as he is 64 it will probably fall to others to continue the work of fixing Boeing,” said Vertical Research Partners analyst Rob Stallard, while interacting with Reuters.

Bob Jordan, CEO of Southwest Airlines said the company looks forward “to working with Kelly Ortberg in his efforts to return Boeing to its place as the leading American aerospace company.”

“I think Mr. Ortberg is likely a great choice for CEO. He has an impressive resume with an engineering background, which is crucial for operating in a complex technical environment,” said Tony Bancroft, portfolio manager at Gabelli Funds, which holds shares of Boeing.

Industry insiders had previously hoped Boeing would hire someone on the younger side, in the expectation that it would take years to turn the company around. Kelly Ortberg is 64, however, and Boeing said it waived the mandatory retirement age of 65 just like it did for CEO Dave Calhoun, who is departing after a management shakeup earlier in 2024.

Kelly Ortberg is said to have beaten out Boeing Commercial Airplanes CEO Stephanie Pope and Spirit AeroSystems boss and former Boeing executive Pat Shanahan for the job. GE Aerospace CEO Larry Culp, Carrier Global CEO and Boeing board member Dave Gitlin and American Airlines Chairman and former Boeing CFO Greg Smith were seen as potential contenders but all indicated they were unwilling to be considered for the role.

Boeing had faced pressure from industry executives and American lawmakers to choose new leadership with an engineering background and without lengthy ties to the company. Whether Ortberg’s appointment is enough to calm down the situation, remains to be seen.

“Mr. Ortberg is a mechanical engineer. I hope that means he will ensure that his top message for everyone is building the best aeroplane means building the safest aeroplane in the world,” said Rep Rick Larsen, top Democrat on the House Transportation Committee who represents a district in Washington State home to major Boeing operations.

Analysts and acquaintances described Kelly Ortberg as being a good listener, honest and willing to take decisive action. One such person is Jefferies analyst Sheila Kahyaoglu, who wrote in a note, “We believe during his leadership at Collins he was well liked by employees and direct reports and very personable. This was while being a tough negotiator dealing with a diverse set of customers and suppliers and managing the complexity of its diverse customer base.”

Image Credit: Boeing

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Among all of its group subsidiaries, GE Aviation has been the ‘Claim to Fame’ for the 132-year-old venture. GE Aerospace (also known as GE Aviation) manufactures aircraft engines, avionics, and other related components. The company has emerged as a crucial player in both the commercial and military aviation space through its engineering excellence.

Among its other industrial commitments, GE is known for being a provider of medical technologies and services, including patient monitoring, diagnostic imaging, and healthcare IT solutions. Also, the group is offering grid solutions, hydroelectric systems, and wind turbines in the field of renewable energy.

In 2022, GE appointed Amy Gowder as the President and CEO, Defence & Systems of GE Aerospace, to lead an operation focused on developing and manufacturing engines and systems for military air combat, trainer, tanker, helicopter, and marine applications.

Who is Amy Gowder?
• Born and brought up in the United States, Amy Gowder completed her Bachelor of Science in Biomedical Engineering from Arizona State University in 1998 and a Master of Business Administration from Massachusetts Institute of Technology – Sloan School of Management in 2010
• She led the Engineering, Operations, Manufacturing, Supply Chain, Quality and Mission Assurance, Safety, Health & Environment, and Information Technology departments at Aerojet Rocketdyne before joining GE
• Before joining Aerojet Rocketdyne, Amy Gowder served as vice president and general manager for Lockheed Martin’s Training and Logistics Solutions in the Rotary and Mission Systems business
• Her profile also has a noteworthy mention of her prior work experience in Accenture, apart from specialising in Supply Chain Management for the high technology industry
• Amy Gowder has been honoured with a ‘Top 40-Under-40 Aviation Executive’ by Aviation Week in 2012 and induction into the San Antonio Women’s Hall of Fame in 2015
• She also served on multiple advisory boards, committees, and task forces in the states of Texas and Florida, advising on aerospace and defence as well as economic development topics

Under Amy Gowder, GE To Consolidate Its Asian Commitments Further

During Indian Prime Minister Narendra Modi’s United States visit in 2023, Washington and New Delhi finalised a USD 1 billion deal, where GE would supply F414 engines, in collaboration with India’s Hindustan Aeronautics Limited (HAL) for the Tejas MK2 fighter jet.

The deal includes an unprecedented 80% technology transfer and licensing arrangements. The deal will see the realisation of the co-production of 99 jet engines, in a cost-friendly manner through the technology transfer.

GE Aerospace has been present in India for over four decades now. With the deal, it will be able to overhaul its facilities in the country, at a time when it is facing pressure from rivals like Rolls Royce and Safran Group, as the latter also eyeing a pie of the growing Indian military aviation market.

GE’s F414 engine, which is a turbofan one and has been used by the United States Navy for over 30 years, is equipped with a dual-channel full authority digital engine control (FADEC), a six-stage high-pressure compressor, an advanced high-pressure turbine, and a “fueldraulic” system for nozzle area control. It offers exceptional throttle response, afterburner stability, and unrestricted performance. In fact, Tejas MK2 will see the usage of F414-INS6, an India-specific variant of the engine. It will help the in-development aircraft with improved range and mission endurance compared to its predecessor, Tejas MK1A, which is powered by GE’s F404-GE-IN20 engine.

Apart from Tejas MK2, there are talks around India’s upcoming fifth-generation Advanced Medium Combat Aircraft (AMCA) and aircraft carrier-based Twin Engine Deck Based Fighter (TEDBF) using F414-INS6 as well. While the Modi government is in discussion with Rolls Royce and Safran over the development of a clean-slate fighter jet engine in the coming days, GE has thrown its hat for the project as well, as securing another contract here will help the company to establish its unparalleled dominance in the military aviation market.

As per Gowder, the GE-HAL deal will move forward further in 2024, with the American company offering a comprehensive technical proposal to establish the Indian manufacturing unit in partnership with HAL. The scope of the technology transfer will surpass that of GE’s previous partnerships around the world (even surpassing that of South Korea and Turkey), as exporting engines and components from India will be a viable business option for the venture in the coming years.

“Early this year (2024), we will have a proposal to them and that kicks off formalising the agreement with HAL and the government. We will bring over our engineers and supply chain resources to start the co-production. It will take most of this year to get it kicked off and going,” she told the India-based Economic Times.

GE Aerospace will also be investing USD 11 million to transform its Singapore aircraft engine repair facility into a state-of-the-art ‘Smart Factory’, powered by automated inspection systems, innovative material removal processes and tools like the Internet of Things (IoT), robotics, cloud storage and data analytics.

This facility was the first in the world to implement new additive manufacturing technology for the repair of commercial jet engine airfoil components.

“The Smart Factory will expand these additive technologies and processes focused first on high pressure compressor (HPC) airfoils for GEnx engines, followed by CFM LEAP engines. Ultimately, the technologies will be leveraged to other engine models including CFM56 and CF34,” stated Asian Aviation.

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As part of the initiative, the manufacturer will work with the Federal Aviation Administration and the United States Department of Transportation to sponsor a Small and Framework Grant (SAF) project by the APEC Transportation Working Group. The project will address various issues related to the industry’s development in the 21 APEC member economies.

According to Boeing, the programme will tackle the following issues: finding sustainable feedstocks for low-emission fuel; creating SAF policies and accounting procedures; and finding new routes, such as utilising current infrastructure and industries to speed up SAF manufacturing.

Chris Raymond, chief sustainability officer of Boeing, cited research demonstrating the critical role SAF plays in the sector’s net zero efforts: “To advance SAF, this programme strengthens the connections we have had for years with various nations.”

“With the goal of creating a safer and more sustainable aviation future, we will encourage cooperation and knowledge sharing among APEC economies,” the official stated further.

By participating in the programme, Boeing furthers its efforts to promote the global development of SAF, building upon research conducted with the Roundtable on Sustainable Biomaterials regarding the technology’s scaling in Southeast Asia, Ethiopia, South Africa, and Brazil.

In keeping with its pledge to guarantee that every aircraft it owns can handle 100% SAF by 2030, the airline has also joined the Aviation Initiative for Renewable Energy in Germany and collaborated with the APEC Secretariat to host regional webinars on SAF.

The effort, which was agreed by the various parties during the APEC annual meeting in San Francisco, aims to increase the industry’s usage of SAF, which is at 0.1% of the world’s jet fuel demand, by collaborating with some of the largest economies on the planet.

Others Chip In Too

Apart from Boeing, United Kingdom-based aviation giant Rolls-Royce has now achieved a milestone in the SAF front, as its ‘UltraFan’ technology demonstrator saw a successful run to its maximum power at the aerospace venture’s Derby facility.

“The milestone test saw the prototype utilising 100% SAF. The UltraFan programme, with its 10% efficiency gain over the Trent XWB, promises improved efficiency for current and future aero-engines,” Rolls-Royce stated further.

This latest accomplishment comes after the initial successful test earlier in 2023. Both the superhit tests now show that the technology can be scaled, as per the engine’s efficiency needs.

“The UltraFan’s scalable technology, ranging from approximately 25,000 to 110,000 pounds thrust (111,205 to 489,026 Newtons), holds the potential to power the anticipated narrowbody and widebody aircraft in the 2030s,” Rolls-Royce noted.

Another American aviation venture Gulfstream Aerospace has now announced the successful completion of the world’s first trans-Atlantic flight using 100% sustainable aviation fuel (SAF).

The feat, which was accomplished on November 19, took place on a Gulfstream G600 aircraft, which departed the company’s headquarters in Savannah and landed 6 hours, 56 minutes later at the United Kingdom’s Farnborough Airport.

“Powered by Pratt&Whitney PW815GA engines, which used 100% SAF, the flight showcased the potential for aviation’s future use of renewable fuels, which feature lower carbon, sulphur and aromatics. The data collected from this endurance flight will help Gulfstream and its key suppliers gauge aircraft compatibility with future low-aromatic renewable fuels, particularly under cold temperatures for extended flight durations,” the venture, which was the first business jet original equipment manufacturer to fly on 100% SAF, informed the media.

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Airbus is Europe’s largest planemaker. It increased its controlling stake in Bombardier’s A220 regional jet programme. Initially, Airbus had teamed up with the Quebec government to acquire 33.5 percent stake in the A220 regional jet programme. Now Airbus plans to increase its acquisition to 75 percent. This in turn is anticipated to increase Airbus’ market presence and boost competition with Boeing.

The A220 was previously known as the CSeries. According to Bombardier, the sale would help the company to revive from the money crunch in 2015 and improve its financial stability. The stake acquisition will help Bombardier to reform its capital structure and close its exit from commercial aviation, media reports said.

Bombardier remains Embraer’s major regional rival. Aengus Kelly, chief executive of leasing giant AerCap, told the media, “Now you have got the heavyweight boxer in the ring with someone who is about seven divisions lighter — there is only one outcome. I think it’s a must: if Embraer doesn’t do it, it’s likely that Airbus will corner part of the narrowbody market which will be poor for the consumer.”

The European Union is expected to start an investigation into the Boeing-Embraer deal next week as soon as the necessary data is received, media reports said.

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Katherine Bennett, Senior Vice-President for Airbus UK, is apprehensive that customs and official procedures would hold-up its manufacturing process and that will be a ‘critically bad issue for Airbus’. She said that the firm held discussions with government about the issue.

Airbus has a yearly expense of about US $6.92bn each year on the UK supply chain. So, it very crucial for the company that its ‘parts don’t get held up in warehouses’ and their on-time delivery is unaffected. Ms Bennett said: “It’s critical for our business to ensure that the wings that we build in Broughton and in Filton can get to France and Germany for the final assembly line.”

Bennett said that the company will shortly ‘have to press a button on a decision on stockpiling parts’.

She added: “It would be very expensive for us and a burden we don’t want to be suffering. Our key preference is for the UK to remain a home nation for Airbus. But we really need the conditions for us to be effective. We don’t want extra costs on our UK business which may make Airbus think differently about us.”

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