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2024-09-04

Boeing Steers Middle East Defence at Egypt Airshow

In an exclusive interview with Nation Shield, Kirk Schultz, Regional Director of International Business Development at Boeing Defense, Space & Security, highlighted Boeing's strategic focus at the Egypt International Airshow 2024.

As a Silver Sponsor, Boeing showcased its nearly six-decade partnership with Egypt, featuring advanced defense platforms like the F-15EX and C-17 Globemaster III.

Schultz discussed Boeing's commitment to enhancing regional military capabilities, pioneering sustainable aviation solutions, and inspiring the next generation through STEM education initiatives across the Middle East.

Here's the detailed interview:

1. How is Boeing demonstrating its strategic focus at this year’s Egypt International Airshow?

Boeing is proud to be a Silver Sponsor of this year's Egypt International Airshow, where we are highlighting our nearly six-decades long partnership with Egypt, particularly in defense. Our longstanding relationship with the Egyptian military, which began over 40 years ago with the acquisition of the F-4 Phantom II fighter, continues today with the operation of Apache AH-64Ds and CH-47D Chinook helicopters. We also support the Egyptian Air Force with advanced electronic charting, navigation data, and maintenance services. At the airshow, we're showcasing these critical defense platforms and introducing the next-generation T-7 trainer (via an interactive set of virtual reality goggles), reaffirming our commitment to Egypt's military capabilities and strategic needs.

2. How do you see Egypt's role evolving in the regional aerospace industry?

Egypt's role in the regional aerospace industry is growing rapidly, driven by its strategic location and increasing investment in aerospace capabilities. With a strong focus on both defense and commercial sectors, Egypt is becoming a key player in the Middle East's evolving aerospace landscape. The country is enhancing its aerospace infrastructure and fostering partnerships that support innovation and development across the sector, which offers significant potential for future growth. Boeing looks forward to working with our Egyptian customers and industry towards this end.

3. What advancement does the F-15QA bring to the table for air forces in the Middle East?

The F-15 has maintained a strong presence in the Middle East and various other regions for decades, currently serving air forces in Qatar, Saudi Arabia, Japan, and South Korea. The F-15EX, an evolution of the F-15 Qatar Advanced fighter jets, brings new capabilities to the table. Its enduring appeal and innovative features have garnered significant interest from both existing and potential customers, including air forces in countries like Indonesia and Poland.

The F-15EX shares significant commonality with its international counterparts, such as the Qatar F-15QA, further enhancing its appeal to global customers. Equipped with a digital backbone and the latest mission systems and software capabilities, the F-15EX is well-positioned to meet the evolving needs of the U.S. Air Force and Partner Nation's tactical fighter fleets. Its ability to integrate next-generation sensors and manned-unmanned teaming further solidifies its role as a vital component of future warfare.

4. How is Boeing ensuring the effectiveness of performance-based logistics (PBL) contracts in the region?

Boeing uses digital tools and data analytics to predict the challenges that defense platforms might face. This allows us to proactively invest in parts or replacements, which keeps the platform ready and drives down costs and emissions.

There is significant interest from air forces throughout the Middle East in Boeing's Next Generation Product Support, which guarantees a predetermined level of fleet mission readiness. This approach ensures that parts and resources are readily available whenever the air force requires them, resulting in operational efficiencies and reduced life-cycle costs.

One of the biggest outcomes-based contracts (PBL) we have worldwide is for the C-17 Globemaster sustainment. Qatar, UAE, and Kuwait are among the countries that operate the C-17, operating a range of missions including highly impactful humanitarian missions. Through these contracts, we maintain high mission-capability rates and continuously improve the affordability of the C-17 fleet. In our package for the C-17, we have introduced a digital tool called Aircraft Data Reasoner (ADR). ADR has already yielded significant results, with over 2mln liters (4.5 million pounds) of fuel saved on the C-17 fleet globally.

5. What milestones have platforms like the C-17 and AH-64 Apache achieved in the region recently?

Boeing's C-17 and AH-64 Apache have recently achieved significant milestones in the region. Three Gulf Cooperation Council nations now operate the C-17, demonstrating its continued importance despite production ending in 2013. The C-17 Globemaster III airlifters have been in service with the Qatar Emiri Air Force for 15 years, having been deployed to conduct multiple humanitarian missions around the world. Qatar became the first Gulf Cooperation Council nation to operate the C-17 Globemaster III beginning in 2008 and our ongoing support for Qatar’s C-17 fleet, exemplified by the recent renewal of its global sustainment support program, reaffirms its dedication to enhancing mission capabilities.

The AH-64 Apache remains a key platform, particularly in Egypt, which operates AH-64D helicopters. In 2023, a contract was signed to upgrade these helicopters to the advanced AH-64E standard, further strengthening Egypt's defense capabilities. These developments highlight Boeing's ongoing commitment to supporting the region's evolving defense needs.

6. What are the latest developments in Boeing's partnership with Masdar to advance sustainable aviation fuel in the UAE?

The MoU signed between Boeing and Masdar last year is an important step in supporting the commercial aviation industry’s goal of achieving net-zero emissions by 2050. Through this collaboration, Boeing and Masdar are focused on advancing SAF policies and exploring SAF accounting principles that could help overcome geographical barriers as the industry scales. SAF, produced from sustainable sources like green hydrogen, can reduce carbon emissions by up to 85% over its lifecycle compared to traditional jet fuel. As a widely accepted drop-in replacement for up to 50% of conventional jet fuel, SAF offers the largest potential to reduce aviation emissions over the next 30 years.

Boeing and Masdar are continually working on this partnership, and Boeing is actively exploring additional opportunities to further develop and expand the use of SAF in the aviation industry. Our commitment to advancing sustainable aviation solutions remains strong, as we continue to collaborate with key partners like Masdar to drive innovation and make meaningful progress toward a more sustainable future for global aviation.

7. How do Boeing’s joint ventures bolster local aerospace industries?

Across the region, Boeing is an integral industrial partner that supports national aspirations to grow the indigenous aerospace industry. We contribute to advanced technology, building the skills and capacity of future generations.

For example, our partnership of over 10 years with the Tawazun Economic Council in the UAE has enabled key industrial initiatives, most notably our collaboration with Strata Manufacturing to produce the 787 vertical fin. Today, Strata is a Tier One composites supplier for the Boeing 787 Dreamliner, 777, and 777X. Tawazun has also enabled our partnership with Edge Precision Industries (EPI) to produce complex metallic machined parts, and the opening of the EPI Surface Treatment facility in Abu Dhabi. Last year, Boeing and Tawazun announced the establishment of the Unmanned Systems Center of Excellence in the UAE.

Boeing is also a significant contributor to the Saudi aerospace industry through our joint venture with Saudi Arabian Military Industries (SAMI), which sustains and supports military rotorcraft. We also actively support Saudi industrial sectors through different localization initiatives aligning with Vision 2030. For example, in 2023 Boeing signed an MoU with the Saudi Ministry of Investment (MISA) and Tasnee to explore manufacturing capabilities of aviation-grade titanium alloy value chain in the Kingdom. In 2024, at the World Defense Show, Boeing Saudi Arabia and Bahri Logistics, a global leader in logistics and transportation, signed a strategic MoU to explore collaborative efforts in the areas of supply chain and distribution in the Kingdom of Saudi Arabia.

8. How is Boeing engaging with STEM education initiatives across the Middle East to inspire the next generation?

Boeing is actively inspiring the next generation of innovators in the Middle East through comprehensive STEM education initiatives. Since 2016, we've supported Cairo University’s aeronautical engineering and STEM programs, and partnered with Education for Employment to equip young Egyptians with vital job skills. In 2021, we launched a STEM Center in Cairo with Amideast/Egypt, benefiting over 2,000 students. Additionally, in Saudi Arabia, we've invested over $15 million in community programs to boost youth participation in STEM fields, including aerospace, while also supporting broader initiatives in education, health, and empowerment across the region.

9. What are the key challenges the company faces in the region and how are you addressing them?

Navigating economic dynamics like inflation, fluctuating fuel prices, and changing demand is complex. At Boeing, we maintain a flexible and adaptive approach to address these challenges. We continually evaluate market conditions, communicate openly with suppliers and customers, and implement strategies to mitigate risks. This proactive stance helps us manage the impact of these economic fluctuations on our operations and sustain our commitment to delivering value.

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