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By Bryan Corliss
Jan. 28, 2019, © Leeham News: You might have missed it over the holidays, but something happened about the time you polished off the last of your Thanksgiving leftovers that just might have changed the balance of power between the major players in our industry.
That something was the closing of the merger between United Technologies Corp. and Rockwell Collins.
The deal, which formally closed on Nov. 26, created a new super-supplier that rivals Boeing’s Commercial Airplane division in size, outstrips it in terms of profitability and has the potential to upset the multi-tiered supply chain pyramid the industry has grown used to over the past few decades.
By Bjorn Fehrm
July 18, 2018, © Leeham News.: United Technologies (UTC) Chairman and CEO Greg Hays said in a Farnborough presentation: “UTC’s focus is a digital lifecycle for all its products.”
“We need to get a digital uninterrupted chain from the idea over development to production and then for the after-sales service. This is the only way we can achieve the increases in development and production efficiency expected of us going forward,” said Hays.
By Bjorn Fehrm
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Introduction
June 08, 2017, ©. Leeham Co: We started the comparison of Irkut’s MC-21 and COMAC’s C919 last week. We compared project time plans, structures and aerodynamics.
Now we continue with the comparison of cabin capacities and systems.
Summary:
Oct. 24, 2016, © Leeham Co.: An announcement Sunday by supplier Rockwell Collins (NYSE:COL) that it will acquire B/E Aerospace (NYSE: BEAV) for $6.5bn caught analysts by surprise. The price tag rises to $8.3bn when assumption of BEAV’s debt is included.
The surprise is not so much BEAV is selling itself. A few years ago, BEAV sold of one of its division and analysts since then believed an exit strategy was underway for the principal owners of the company.
The surprise is that the buyer is Rockwell, a supplier that has little in common with BEAV. A slide from Rockwell’s own investor presentation Sunday illustrates the point.
Rockwell will have an investors’ call Monday at 0830 EDT to further explain the merger.
June 28, 2015: Rockwell Collins, a major supplier of aircraft systems, said in its FY3Q2015 earnings call Friday that aftermarket parts and provisioning sales were below expectations in part because the Boeing 787 and the Rockwell parts are proving so reliable in service.
Fewer airlines introduced the 787 into service in the third quarter, also driving down provisioning, Rockwell said.
Although Rockwell’s emphasis was on its own products, the news from a third party such as Rockwell must be sweet music to Boeing’s ears after all the program difficulties and a three-and-a-half month grounding of the 50 787s then in service beginning in January 2013 after two battery fire and smoke incidents. It is, after all, Boeing’s name on the side of the airplane, not Rockwell’s. There are now about 300 787s in service.