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For Boeing, Warplanes Are Becoming History

After losing another big military contract, giant's defense role shrinking to bit parts

By Matt Cantor,  Newser Staff

Posted Apr 7, 2008 3:34 PM CDT
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(Newser) – As Boeing makes fewer military aircraft and more hardware systems, its commercial and defense arms look increasingly like separate companies, the Seattle Times reports. "These are two legs walking in opposite directions," one analyst says. While airplanes continue to dominate its commercial side, the company, once a military-aircraft mainstay, now lacks a single prime contract for future warplanes.

Boeing Commercial produced 441 aircraft last year, to 84 for the defense arm—which also recently lost a huge tanker contract to a rival and its European partner. Meanwhile, Boeing Integrated Defense Systems focuses on projects like missile defense and a “virtual” border fence. A VP insists on a flow of expertise between the divisions, but an analyst asks, “Where’s the synergy?”

Boeing union workers protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists Union in Everett, Wash., Friday Feb. 29, 2008.
Boeing union workers protest the U.S. Air Force's decision to award a fuel tanker contract to Airbus-Northrop Grumman at the Aerospace Machinists Union in Everett, Wash., Friday Feb. 29, 2008.   (AP Photo/Stephen Brashear)
World War II U.S. Army Air Force veteran Thurl Harber of Russellville, Ark., stands next to a Boeing B-17G bomber in North Little Rock, Ark., Saturday, March 1, 2008.
World War II U.S. Army Air Force veteran Thurl Harber of Russellville, Ark., stands next to a Boeing B-17G bomber in North Little Rock, Ark., Saturday, March 1, 2008.   (AP Photo/Danny Johnston)
A new Boeing 777-200 LR purchased by Delta Air Lines Inc. takes off Friday, Feb. 29, 2008 from Boeing Field in Seattle.
A new Boeing 777-200 LR purchased by Delta Air Lines Inc. takes off Friday, Feb. 29, 2008 from Boeing Field in Seattle.   (AP Photo/Ted S. Warren)
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COMMENTS
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Boeing • Airbus • fuel tankers • Northrop Grumman • Defense Industry • contract • airplane

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