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Thursday, February 12, 2015

Military procurement/ New bomber
Northrop Grumman’s B-2 Spirit Bomber is shown. Boeing built major portions of the stealth bomber’s wing and aft fuselage in Seattle under a subcontract from Northrop. When the Pentagon this spring announces who will design and build a major new stealth bomber for the Air Force, the decision will determine Boeing’s future in the combat-aircraft business.
The choice could also reshape the military-industrial base. Top aerospace analyst Richard Aboulafia said that whatever the outcome, it could precipitate an aggressive move by Boeing, the No. 2 U.S. defense contractor, to acquire the aircraft unit of No. 3 defense player Northrop Grumman.
Boeing has teamed with Lockheed Martin, the top defense contractor, in bidding against Northrop to build up to 100 new-generation long-range strike bombers (LRS-B) that will replace the Air Force’s B-1 and B-52 bombers.
The currently projected cost, not counting classified spending, is $90 billion, or $900 million per airplane.
“If Boeing loses, it won’t be building combat aircraft after 2018 unless it buys Northrop’s aircraft unit,” said Aboulafia, a Teal Group analyst who will address the Pacific Northwest Aerospace Alliance annual conference Wednesday morning in Lynnwood.

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