On Wednesday, President-Elect Donald Trump met with Boeing CEO, Dennis Muilenburg, and Lockheed Martin CEO, Marillyn Hewson, to discuss cost reductions to Air Force One and F-35 fighter jets. Both aircraft manufacturers came under fire earlier this month after Trump tweeted that the costs for those aircraft are ”out of control”.
Boeing recently announced that it will move its’ Defense, Space, & Security business unit headquarters from St. Louis, Missouri to the Washington, D.C. area next year. While only ~12 individuals from the senior leadership team will initially be transferred to the new headquarters,
After months of culminating dissent between Defense Secretary Ash Carter and Navy Secretary Ray Mabus about naval procurement strategy, the Navy has rejected the Pentagon’s proposed $17 billion in budget cuts over the next five years. Pentagon leaders want funding allocated more to weapon systems, aircraft and less on ship procurement.
The U.S. House of Representatives and Senate have agreed on a $619 billion defense budget for 2017, which will be finalized with votes over the next week. This bill marks a $3.2 billion increase over President Obama’s budget request. Democrats had pushed for an equal increase in domestic spending, but the provision was not accepted.
Boeing recently announced it has hired Kevin McAllister, former chief of GE Aviation services, to run its commercial aircraft business. McAllister is the first outsider to lead Boeing’s commercial jet division and the most senior external company hire since 2005. McAllister had been employed by GE since 1980, initially working as a product engineer developing commercial and military engines and moving into GE’s customer support operation in 1998.
Congress has decided to extend the Continuing Resolution (‘CR”), which was set to expire on December 9th, causing government and military budgets to be delayed until at least April 2017. This marks the eighth consecutive year where the Department of Defense will not have received an appropriations bill by year end.
After President Elect Donald Trump’s unexpected win on Tuesday, U.S. defense firms such as Raytheon, Northrop Grumman, and General Dynamics saw significant stock gains on Wednesday. The gains are likely attributed to expectations that President Elect Trump will seek to increase U.S. defense spending over current levels.
The National Business Aviation Association (“NBAA”) hosted its annual Business Aviation and Convention Exhibition in Orlando from November 1st through the 3rd. During the week, roughly 27,000 visitors from executive management, flight department personnel, sales and marketing, and finance / legal firms visited over 1,100 exhibitors to network, view the newest products, and keep up with the latest trends.