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The article discusses the current challenges that Embraer, one of the worldEs four dominant commercial aircraft producers now faces. Some of the different efforts that are being undertaken by the company to try and revive itself are highlighted.

David W. Thompson has reflected on the successes and mistakes and has also discussed on the future of the space and defense industries. He has described the Orbital Sciences milestones and its role on NASA's Orion Crew Exploration Vehicle.

The Air force Thunderbirds began their show season by the end of March 2005 in which they performed 74 aerial demonstrations at 43 show sites. In one of Thunderbirds' most breathtaking maneuvers, Solo pilots flew before the crowd with smoke on to perform the crossover break.

The aerospace industry has adopted the Six Sigma process improvement system to reduce manufacturing costs and enhancing customer relationships. Six Sigma, which often lacks a comprehensive approach in its implementation, was the subject of a recent survey by Boston, Mass.-based Pittiglio Rabin Todd and McGrath.

Raytheon Aircraft Co. is showing improved productivity, better cash flow, reduced overhead and other progress although the firm will lose $15 million this year. The turnaround and the history of the firm are both discussed, as well as the parent company's plans to sell Raytheon Aircraft Co..

The 2002 Index of Competitiveness study is discussed in relation to top-ranking publicly traded aerospace firms. Examples of execution of business strategies at leading firms are included.

Despite mergers and acquisitions in the aerospace and defense industries valued at over $150 billion, consolidation in these industries is expected to continue in a major way. Despite some problems integrating mergers, there appears to be plenty of capital interested in funding defense acquisitions. An attached table documents the massive consolidations that have already taken place.

This article presents an overview of the aerospace/defense industry in the area of asset utilization.. The author contends that there is little improvement in the industry and cites especially the deterioration in the past three years of fixed-asset returns. Charts and graphs are included.

This article considers the financial situation of Raytheon Co. which is under pressure to deliver on its performance goals. Graphs illustrate the company's debt and cash flow over the past five years and the author discusses the strategies of CEO Daniel Burnham and CFO Franklyn A. Caine.

Underlying problems threaten the future position of Canada's aerospace industry despite recent increasing sales.

The 2000 aerospace Index of Competitiveness contends that 'no one country can claim a monopoly on competitiveness,' and ranks aerospace industry leaders based on their asset utilization, productivity, and financial health.

Airline industry's profits are expected to be below their usual levels this year, as the prices for crude oil skyrocket, and the economic circumstances aren't right for raising service costs. Average fuel price is projected to be around 69.4 cents per gallon this year, as compared to 49.8 in 1998, and 50.1 cents last year. Although the Air Transport Association predicts a 38% increase in fuel prices for the year 2000, some industry analysts claim that the oil prices will moderate by mid-year.

Defense and aerospace firms are planning to implement six sigma quality control programs to further boost their profitability and competitiveness. The new quality control programs help manufacturers offer superior quality products and increase customer satisfaction.

Many companies in the aerospace industry are ranked according to competitiveness, and those focusing on acquisitions and mergers are in general less competitive. Many companies engaging in large mergers are hampered by unwieldy management structures.

The proposed acquisition of Northrop Grumman by Lockheed Martin is expected to lead to a consolidation in the ranks of the major domestic defense contractors. The $11.6 billion deal, however, has yet to pass antitrust and regulatory reviews

Competitive pressures in the 1990s are forcing aerospace companies to implement new strategies that will ensure their competitiveness while adapting to a constantly changing market. Findings from the Index of Competitiveness say that lower-end suppliers as a group have become the aerospace industry's most competitive companies in the face of improved delivery performance and cost concessions.

The financial outlook for French and German aerospace firms appears bleak in 1995, due in part to the US dollar's decline. The wave of restructuring that UK aerospace firms underwent is bearing fruit in the form of impressive balance sheets. British Aerospace earnings were up by more than 20% in 1994.

The defense and aerospace industries are producing growing revenues and are healthier than they have been in years. Cash flow is very strong and stock prices are performing very well and considered undervalued. However, future growth opportunities may be limited.

Northrop Corp CEO Kent Kresa answers charges that his company seems to be unfocused and lacking any long-term strategy. He says that the company is actively involved in the industry consolidation but that any acquisitions it makes must make increase shareholder value.

A major contraction in the US aerospace industry began with Pentagon program cuts, but is now driven by primary contractors' need to improve cycle times and profitability. By 1997 the supplier base will be about 30% of its 1991 size, but much leaner and stronger.

Kahn, former chairman of the Civil Aviation Board who developed the Airline Deregulation Act of 1978, believes deregulation accomplished its primary goal, to make air travel affordable. He says he underestimated the threats of destructive competition and overcapacity.

Frank Turner believes that Lucas Aerospace will emerge as an industry leader after the expected UK aerospace industry consolidation takes place. Turner presents his views on such topics as Lucas's plans for US expansion and the extent of the industry's downsizing effort.

McDonnell Douglas is entering a crucial phase in its history, as it must prove to an increasingly skeptical public that it can still fulfill its performance commitments. It needs to maintain profits on its major projects and find joint ventures for its minor ones.

CEO Weber explains Lufthansa German Airlines' three-year cost-cutting plan known as Program 93. He sees the opening of American skies and an alliance or merger with an American carrier as essential to global competition.

The article reviews and analyzes how prepared the current CEO's of aerospace and defense industries (A&D) are in dealing with the complex challenges that their companies and the entire industry face. Details of some of the most competent leaders along with their capabilities are highlighted.

The article discusses the views of several suppliers of the aerospace and defense industry regarding the challenging environment facing them at the Aerospace Industries Assn.'s (AIA's) annual supplier conference in Washington. The different viewpoints covering issues relating to finance and credit, business transformation and innovation and globalization are highlighted.

Giovanni Bisignani, director general and CEO of International Air Transport Assn., speaks about the difficult period that airlines are experiencing, following the economic global crisis. Additionally, he offers his views across various topics ranging from the U.S. /E.U. open skies policy to the option for governments to relax ownership regulations that could benefit carriers.

McDonnell Douglas Corp. will sell 40% of its commercial aircraft operations to Taiwan Aerospace Corp. to create a new company call Douglas Global Inc. McDonnell Douglas hopes the company will challenge Boeing's commercial aircraft dominance. Observers see this as a growing trend.

McDonnell Douglas Corp is planning an alliance with Asian risk-sharing partners for production of MD-12X commercial aircraft. The aircraft will compete with the Boeing 747 commercial aircraft.

Michael T. Strianese CEO and President of L-3 Communications discusses his achievements over the last two years following the acquisitions of over 70 businesses. He also reveals that troop withdrawal will not affect the company but would provide better opportunities for contractors who would be required to fill the gaps.

Vern Raburn, the CEO of Eclipse Aviation, blames inefficient supply chain for the slow production rate. The company hired Todd Fierro the plant manager at the Ford Motor Co. to improve its production processes.

The article discusses the endurance of conflicts and accidents by the DynCorp International, government service contractors to make Afghanistan more safe and secure.

President and CEO of BAE Systems Inc., Walter P. Havenstein spoke about the company's goals. Havenstein stressed on the strategies they need in order to push forward and tackle the slump in the economy.

The number of business aircrafts is 215 compared to 1300 in Europe and 15,000 in America in the Asia-Pacific region. Cultural, regulatory obstacles and lack of adequate infrastructure are mainly responsible and a cultural shift, demand for imported goods is likely to trigger a boom in air traffic and consequently a demand for business aircrafts.

The ethical scandal in Boeing Co. has cost its Chief Financial Officer, Michael Sears and another executive their jobs, damaging its business and reputation. The annoyed members of the Congress feel that the investigation of the ethical scandal could become a catalyst for a change at the top of the organization, and might result in more government regulation.

A study indicates that European aerospace and defense firms need to improve profitability.

General Electric outbids United Technologies to acquire Honeywell International, a merger which will change the aerospace industry dramatically by giving the new company a certain dominance over competitors.

The shortage of aerospace engineers is discussed. Reasons attributed to the decline include: the migration of engineers to wireless technology and Internet startups; the internationalization of the US engineering student body and the graying of the aerospace engineer workforce.

Helicopter manufacturers are attempting to emulate the success of business jet makers in marketing aircraft for fractional ownership, but are achieving only limited success. Programs from Eurocopter, Sikorsky Shares, Bell/Agusta Aerospace, and HeliFlite Shares are discussed.

Lockheed Martin Corp. is desperately seeking to reverse its current downward spiral and recent plunging stock prices fueled speculation in some quarters that it may have become an acquisition target. However, it is very unlikely that any company would make a play given its current valuation due to its debt of $12 billion. CEO and Chairman Vance Coffman is attempting to boost morale by reassuring workers that they have his full confidence while additionally stressing there can be no more operations problems including poor quality. One action being taken is deferment or drastically cutting capital spending.

Aerospace industry original equipment manufacturers are breaking long-term agreements with suppliers more and more frequently, particularly in the US, according to interviews with lower-tier suppliers. Long-term agreements are in theory a way to strengthen supply-chain management by rewarding strong suppliers and motivating them to achieve aggressive productivity goals. Some suppliers, though, feel that not all levels of management at some OEMs were in tune with the companies' larger strategic goals for supply-chain management, particularly during market contractions.

The aerospace/defense industry has not increased its operational efficiency to the same extent that the commercial electronics industry has since the mid-1990s, according to a supply-chain-management benchmarking study conducted by The Performance Management Group L.L.C. PMG found that aerospace/defense contractors' total supply-chain costs were about 40% higher on average than commercial electronics firms' total supply-chain costs. Commercial electronics companies had a 25% better cash-to-cash cycle time than their aerospace and defense counterparts. However, aerospace/defense companies did better in terms of on-time delivery to request than commercial electronics firms.

Boeing Co. is cutting back production due to a decline in 1998 revenues and projected declines in aircraft deliveries of 25% from 1999 to 2000. Revenues in 1998 are projected at $50 billion, $6 billion lower than projected revenues, and 1999 revenues are expected to be off by $200-$500 million.

Investors are financing various space communications industry projects due to high annual returns on investments in the sector. Aerospace firms need to raise capital for multibillion dollar projects in multiple stages to comply with regulatory issues. A strong market for satellite communications systems is expected to further boost investments.

The idea of forming international consortiums between European and US defense and aerospace companies has not been warmly embraced by the Europeans because of what they see as a historical imbalance in joint ventures with the Americans.

US Airways Group has plans for expansion after the ratification of a new five-year labor agreement with its pilots. Airbus will provide the company with 400 new jets, service will expand into Europe, a new Midwest hub will be created and a new shuttle service could also be created.

Problems with its supply chain may hinder Boeing's ability to deliver new commercial aircraft on time. Suppliers who were left out of the consolidation loop have ceased operations, while some of those who remain are not willing to invest in new capacity.

The failure of US Airways and its pilots to negotiate a labor contract threatens Airbus Industrie's $14-billion deal with the airline for 120 airliners. The deal, which is set to expire on Sep 30, 1997, hinges on the ability of US Airways to strike a deal that allows it to downsize and cut costs.

USAirways plans to drastically reduce its staff and institute other cost saving measures in an attempt to make the fifth largest domestic airline profitable. Persistently high operating costs have affected the airline's ability to acquire a new fleet of aircraft ordered from Airbus Industrie.