Another round of significant cuts to the defense budget through the Budget Control Act’s sequestration mechanism could hit the nation’s aerospace industry hard in the area of stealth expertise, warned Gen. Philip Breedlove, Air Force vice chief of staff. In the industrial base, “there are some very key capabilities out there that are already very much at risk,” Breedlove told the Senate Armed Services Committee’s readiness panel on May 10. He continued, “In the aviation business, the number of houses that can do stealth has reduced. Another cut to the capability and the effort that we’re putting into those stealth capabilities could cause us severe problems in that industrial base.” Defense sequestration, which will take effect in January unless Congress acts to prevent it, would slash up to $500 billion from the defense budget over the next 10 years on top of the $487 billion in already programmed cuts. (Breedlove’s written testimony)
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.