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Boeing To Combine Space and Military Aircraft and Missile Units
By SAM SILVERSTEIN
Space News Staff Writer
posted: 04:39 pm ET
10 July 2002

Boeing To Combine Space and Military Aircraft and Missile Units

WASHINGTON Boeing Co. is combining its space division with its military aircraft and missiles operation, creating a new business group designed to meet what company officials said is a growing need for defense systems that depend heavily on information management capabilities.

The new unit, Boeing Integrated Defense Systems (BDIS), will be headed by Jim Albaugh, president of Boeings Space and Communications group. The new organization replaces the space operation, based in Seal Beach, Calif., and Boeings Military Aircraft and Missile Systems division, St. Louis, which together posted $23 billion in revenue in 2001, according to Boeing officials.

Jerry Daniels, who has been president and chief executive officer of the military aircraft and missile group for the past two years, will retire from Boeing once the two groups are combined, which is expected by the end of the year, officials said.

Speaking July 10 in a press conference at Boeings Chicago headquarters, Boeing Chairman and Chief Executive Officer Phil Condit said future defense systems will feature increasingly close links between space capabilities and aircraft, ships and land-based platforms.

"The military wants to build integrated systems," Condit said. "For us, this says were into parts of the military where we havent been before."

Boeings space business includes Boeing Satellite Systems of El Segundo, Calif., which builds satellites for commercial as well as government customers. That business is unlikely to change under the new organizational structure, Condit said.

Boeing officials considered separating the commercial and military sides of Boeing Satellite Systems, but ultimately decided there is enough in common between the two to justify having the commercial business within an organization that is heavily defense-oriented, Condit said. Boeing uses similar satellite platforms for many of its defense and commercial programs, he said.

BDIS will be headquartered in St. Louis and be one of just two remaining major Boeing divisions. The other division builds commercial aircraft.

Condit said he does not expect the changes to result in layoffs. He also rejected the idea that Boeing chose to reorganize in response to Northrop Grumman Corp.s pending acquisition of TRW Inc., saying he had been considering the move for about a year.

 

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