Finance and Economic

Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) is continuing to fund research and development of new military aircraft, but its technological base may erode if the U.S. Air Force does not move soon to begin a competition for a new bomber and a new fighter, a top executive said on Monday,

“The technology base is eroding for Boeing as we move late into the next decade,” Darryl Davis, president of Boeing’s Advanced Systems unit, told reporters at the annual Air Force Association meeting.

In recent years, Boeing has lost several key military aircraft competitions, including the $200 billion Joint Strike Fighter project, won by Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz); an unmanned combat airplane competition won by Northrop Grumman Corp (NOC.N: Quote, Profile, Research, Stock Buzz); and an unmanned Navy patrol plane, also won by Northrop.

Given that Boeing’s production line for the C-17 transport plane and F-18 fighter jet are beginning to wind down, defense analysts have raised concerns about Boeing’s ability to compete for more military aircraft contracts in the future.

Davis agreed it was a concern, especially if the Air Force’s program to build a new bomber and possibly start work on a sixth-generation fighter were delayed.

Overall, U.S pay day loan. defense spending was likely to level off and possibly decline in coming years, and much would depend on the priorities of the new administration, Davis said.

He said Boeing expected research and development programs to continue being funded, but those programs might not move into design, development and production “as soon as we hoped.”

“It’s going to be a difficult environment,” Davis said. 

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