Boeing on Tuesday announced changes to its military aircraft business that will take effect Oct. 1. The organization will consolidate from six divisions to four, “to continue to position the company for growth in the current business environment,” states the company’s release. The four new divisions are Global Strike, based in St. Louis; Missiles and Unmanned Airborne Systems, based in St. Charles, Mo.; Mobility, based in Ridley Park, Pa.; and Surveillance and Engagement, based in Seattle. “This reorganization, coupled with our productivity goals, will reduce organizational complexity and allow us to be more efficient,” said Boeing Military Aircraft President Chris Chadwick. There will be some work force reductions, beginning with approximately 10 percent of BMA executive positions, states the release.
The Air Force and Boeing agreed to a nearly $2.4 billion contract for a new lot of KC-46 aerial tankers on Nov. 21. The deal, announced by the Pentagon, is for 15 new aircraft in Lot 11 at a cost of $2.389 billion—some $159 million per tail.