Citing defense spending cuts and declining prospects for new business, Boeing said on January 4 that it will close its military modifications and maintenance operations in Wichita by the end of 2013, dealing another blow to a city reeling from the downturn in business aircraft manufacturing.
Boeing Integrated Defense Systems
Boeing has consolidated its military aircraft business into four divisions from six, as part of a rationalization process prompted by slowed defense spending. Two of the previous divisions are amalgamated into a single missiles and unmanned airborne systems division based in St. Charles, Mo., while the current rotorcraft division is split.
Boeing Integrated Defense Systems has adopted a five-pronged strategy to drive forward through the current downturn, and to continue its growth from an estimated $33- to $34 billion revenues for 2009 in an era of increased focus on costs.
Boeing has embarked on a series of important initiatives–including a joint-venture proposal–that strengthens its ties with India. In the process, the company is hoping to become what Boeing India’s president, Ian Thomas, described as “India’s preferred aerospace and defense partner and provider.” Boeing currently is competing with five of the world’s major fighter manufacturers for a 126-aircraft order from the Indian Air Force.