Boeing’s defence business is looking forward to strong growth as it focuses increasingly on Asia-Pacific markets for new business.
In its domestic market, the company’s integrated defense systems (IDS) segment is looking ahead to some big procurement decisions later this year. The US Air Force is expected to decide on a winner for its tanker competition in the third quarter and IDS is also awaiting a decision on its Chinook HH-47 submission for the CSAR-X combat search-and-rescue programme.
“We have a good mix of customers within the Department of Defense and we have good protection when the budget is under pressure,” says Mark Kronenberg, IDS vice-president, Asia-Pacific business development. “Joint ventures and partnerships are going to be increasingly important to get into new countries,” adds Kronenberg.
In particular, global strike systems is well-positioned for growth, says Chris Chadwick, vice-president and general manager of the business unit that forms part of the Precision engagement and mobility systems division of IDS and accounts for more than 20% of IDS as a whole. In the USA, global strike systems has recently negotiated a deal to supply 600 laser JDAM precision-guided bombs to the US air force and navy, while current domestic contracts allow for Super Hornet production until 2011.
Grow substantially
“Our strategy will allow global strike Systems to grow substantially over the next five to ten years,” says Chadwick.
Boeing has seen success in various Asia-Pacific markets including Singapore and South Korea with the F-15 and is competing in India’s forthcoming multi-role fighter contest. In addition, tanker deliveries to Japan are scheduled to begin in the coming months. “Asia-Pacific is clearly a growth market,” Kronenberg says, adding that “Asian customers continue to invest in defence”.
The United Arab Emirates is a potential market for this year, Kronenberg says.
“The Middle East has been dormant for the last 10 years – we are starting to see customers coming back and looking at new acquisitions.”
Saudi Arabia is also looking at the possibility of upgrading its F-15 fleet, while Kuwait is considering the F/A 18 Super Hornet. “Between Saudi and Japan, I don’t think we’ll see the F-15 production line closing before 2015,” says Chadwick.
Source: Flight Daily News
