Even closer links could develop between the MDC F-18 and Hughes' AMRAAM
Douglas Barrie/LONDON
An imminent decision from the US Department of Defense (DoD) over a Sidewinder short-range air-to-air missile replacement presages a radical shake-up of the US missile-manufacturing industry.
The decision, due on 13 December, is expected to prompt a shake-out in the missile-manufacturing sector, continuing the process of defence-aerospace consolidation among US companies.
A top-level management meeting in early December at General Motors - the owner of Hughes, one of the two AIM-9X competitors -has fuelled speculation that the group is looking to restructure its aerospace and defence subsidiary. Divestment of this sector is reported to be actively under consideration, although Hughes could yet turn into a buyer.
Senior Hughes officials admit that the DoD's AIM-9X decision is likely to be a watershed in the US missile-manufacturing sector. Hughes is competing with Raytheon for the contract.
McDonnell Douglas (MDC) is also understood to be looking to restructure its missile business. MDC's unit continues to work on several programmes, but would benefit from the addition of "critical mass". It is also being suggested as a potential bidder for Hughes' missile business. Northrop Grumman could also emerge as an interested party in acquiring defence elements of Hughes
Industry sources suggest that the final result of the AIM-9X decision could potentially see at least two out of these three missile manufacturers merge, while the consolidation of all three is possible.
MDC's elimination from the US Joint Strike Fighter (JSF) programme has helped to prompt the group towards links with Boeing on civil-aircraft production. Although MDC president Harry Stonecipher says that he will not pursue joining one of the two winning JSF teams, these civil tie-ups could be a precursor to involvement with the Boeing bid. Boeing was selected, with Lockheed Martin, each to build two technology-demonstrator JSF aircraft.
Hughes is considering recruiting a UK contractor to lead its bid for the Royal Air Force's future medium-range air-to-air missile (FMRAAM), and may also look to strengthen its position through acquisitions. Hughes is competing with a Matra British Aerospace Dynamics-led team for the RAF FMRAAM requirement.
Source: Flight International
