Teal Group In The Media

Our analysts are sought out by the business community and by the media for their independent insights and forecasts.

20
November
2013

ULA looking to save money, but has no plans for layoffs

Featuring: Marco A. Caceres

ULA looking to save money, but has no plans for layoffs

On Saturday, The Decatur Daily reported that Virginia-based aerospace industry analyst Marco Caceres said ULA’s large scale compared to newer competitors means it will have to cut workers to remain competitive in a tightening fiscal environment. “I think what they’re doing is looking at the future and saying they don’t see too much opportunity for growth and thinking they’ve got to be a little leaner to compete against some of the younger and smaller companies like SpaceX,” he said. “They’re going to have to lay off people.”

Media Outlet: Decatur Daily Tags ULA

19
November
2013

Drone Purchases Drive Competition for New Radars

Featuring: Dr. David L. Rockwell

Drone Purchases Drive Competition for New Radars

One analyst said Northrop would do well to focus on maritime capability. “The US Army likes the STARlite, but it could have a much bigger future if they can go maritime, which is what the US will need more of as it focuses on Asia,” said David Rockwell, an analyst at the Teal Group.

Media Outlet: Defense News Tags Drones | Radar | Starlite

18
November
2013

777X still makes sense in Everett, analysts say

Featuring: Richard L. Aboulafia

777X still makes sense in Everett, analysts say

“There’s no economic argument that I can think of for leaving Puget Sound,” said Richard Aboulafia, an aerospace analyst with Teal Group, a Fairfax, Va.-based consultant. The 777X is hugely important to Boeing’s future in the commercial airplane industry, where it faces competition now from Airbus with Russia and China looking to get more market share in the next decade, experts say.

After formally unveiling the plane on the opening day of the Dubai Air Show, Boeing announced airline orders for the 777-8X and 777-9X worth nearly $100 billion at list price. After Boeing’s experience with the 787, which saw three years of delay before the first delivery, the company’s margin of error for delivering the 777X is “between zero and none,” Aboulafia said. Everett and Puget Sound offer the least production risk, noting its trained workforce, developed infrastructure and state support, and none of that is going to change in three months, he said.

Media Outlet: The Daily Herald Tags 777X | Boeing | Puget Sound

18
November
2013

Gulf Nations Eye Strike Capabilities

Featuring: Steven J. Zaloga

Gulf Nations Eye Strike Capabilities

These proposed sales, particularly the long-range SLAM-ERs, raised eyebrows in the defense community. If these sales are approved by Congress, it would mark the first time SLAM-ER has been sold to the Gulf region. Analysts point to the rise of Iran, a joint enemy to the US, Israel and countries in the Gulf Cooperation Council, as a key driver that could be changing the long-held policy. “Seeing these [deals] pop up strongly suggests to me there has been a policy change somewhere,” said Steve Zaloga, an analyst with the Virginia-based Teal Group. “Somebody had made a decision that these will be openly offered to Saudi Arabia and the UAE.”

Media Outlet: Defense News Tags Foreign Military Sales | Middle East

14
November
2013

Lockheed consolidates, moves some business areas to suburban Denver

Featuring: Marco A. Caceres

Lockheed consolidates, moves some business areas to suburban Denver

While these cuts to overhead costs are proactive, Marco Caceres, a senior space analyst for aerospace/defense adviser Teal Group, worries that this is not the end of Lockheed’s downsizing. “They are becoming very realistic about their future of space systems,” which is changing because of budget cutbacks, budget stagnation, increased competition from international players and competition from other U.S. commercial companies, Caceres said. “They are being smart. They are moving now as opposed to two to three years from now when it might be too late,” he said. “If they can’t see a significant way to lower their costs, they could be scooted out of the business in the future.”

Media Outlet: The Denver Post Tags Layoffs | Lockheed Martin

09
October
2013

The fast-approaching end of the jumbo jet era

Featuring: Richard L. Aboulafia

The fast-approaching end of the jumbo jet era

“Boeing “has modern, competitive, second-to-none jets hobbled by dubious management”, says Richard Aboulafia, an analyst at Teal Group.”

Media Outlet: Financial Times Tags Boeing

02
September
2013

Billionaires Battle as Bezos-Musk Companies Vie for Launch Pad

Featuring: Marco A. Caceres

Billionaires Battle as Bezos-Musk Companies Vie for Launch Pad

NASA may not be able to award the lease until the U.S. Government Accountability Office weighs in. Blue Origin this month protested NASA’s solicitation with the federal arbitrator of contract disputes. The GAO has until Dec. 12 to issue its decision. Even if both companies agree to share the launch pad, the winner of the lease has control. “If you own that lease, then you can decide when you allow somebody else to use it,” said Marco Caceres, a senior space analyst for Fairfax, Virginia-based Teal Group. “You have control over when you launch instead of taking what is provided by another company when they choose to give it.”

Media Outlet: Bloomberg News Tags Elon Musk | Kennedy Space Center | SpaceX

16
July
2013

Asiana passengers look to sue airline, Boeing over crash

Featuring: Richard L. Aboulafia

Asiana passengers look to sue airline, Boeing over crash

Aviation experts expressed surprise at the announcement of a planned lawsuit, saying it may be premature before the National Transportation Safety Board completes its investigation, which could take more than a year. “This is one of the more unusual things I’ve heard,” said Richard Aboulafia, an aerospace analyst with Teal Group Corp., a Virginia research firm. “You don’t hear of much success with cases like these, particularly involving an aircraft with such a stellar safety record.”

Media Outlet: The Los Angeles Times Tags 777 | Asiana Flight 214 | Boeing

16
June
2013

Drone Sales Flourish in a Time of Austerity

Featuring: Philip Finnegan

Drone Sales Flourish in a Time of Austerity

Philip Finnegan, director of corporate analysis at Teal Group, an aerospace consulting firm based in Fairfax, Virginia, said he expected the 2014 U.S. budget to propose reductions in existing drone programs in favor of “next generation systems, stealthier, with more power, and capable of operating autonomously if jammed by opponents.” Among major competitors to the U.S. drone makers, Mr. Finnegan lists Israeli companies — in some cases working with Indian partners — and Brazilian programs aimed at that country’s need to patrol far-flung jungle borders and a long Atlantic coastline. Also emerging as future competitors, in Mr. Finnegan’s view, are Turkish Aerospace Industries; Denel, the South African state-owned aerospace and defense technology group; and some Chinese companies.

Media Outlet: The New York Times Tags Drones

05
June
2013

Space Attacks: Technology And Contracting Shifts May End Market Dominance

Featuring: Marco A. Caceres

Space Attacks: Technology And Contracting Shifts May End Market Dominance

Marco Caceres, an analyst with the Teal Group, agrees that disaggregation should be a popular sell for members of Congress looking to save money in a cash-strapped environment — but warns that a change in culture is needed before it can be successful. “I think before the traditional way of doing things goes out the door, Congress is going to have to accept a new culture of how to procure these kinds of systems,” he said. For it to work, Congress is going to have to accept that it cannot have every tool loaded up onto one large, fancy system. It’s unclear how that will play, where more than one strategic plan has fallen by the wayside due to a congressman protecting jobs in his district.

Media Outlet: Defense News Tags Procurement

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