Boeing and International Partner Win Air Force Contract

Boeing and its Italian partner Leonardo have been awarded a US Air Force contract potentially worth 2.38 billion dollars for up to 84 Leonardo MH-139 helicopters.Leonardo will manufacture the choppers at its AgustaWestland plant in Philadelphia,while Beoing will missionise the aircraft to meet the Air Force's special needs.The choppers will be used by Air Force Security Forces to protect the nation's land-based ICBM deterrent.They will also be used for training and VIP transport.*
The MH-139s,which are the military version of the commercial AW-139,will replace the venerable UH-1N Huey,which entered service in 1970.The companies will get 367 million dollars for the first four helicopters.Then the Air Force will decide whether to proceed with further production.*
Leonardo,formerly known as Finnmecanica,is based in Rome and is exclusively an aerospace and defence firm with numerous subsidiaries,such as AgustaWestland and Thales Alenia Space.*
The Boeing Company (BA),Leonardo S.p.A. (Italy:Milan LDO)

Lockheed Buys Sikorsky,May Divest Some Businesses

Lockheed Martin,the world's largest defence contractor,announced today,20 July,that it has entered into a definitive agreement to acquire Sikorsky Aircraft from United Technologies for 9 billion dollars.After a tax break,Lockheed said the final cost would be 7.1 billion.*
Sikorsky is a natural fit for Lockheed Martin and complements our broad portfolio of world-class aerospace and defence technologies,said CEO Marilyn Hewson.I'm confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment.Together,we'll offer a strong portfolio of helicopter solutions to our global customers and accelerate the pace of innovation and new technology development.*
Pending regulatory approval,the deal is expected to close by late Q4 2015 or early Q1 2016.Despite the acquisition,Lockheed will continue on course to pay dividends and buy back shares.*
Sikorsky will become part of Lockheed's Mission Systems and Training segment.Through MST,Lockheed and Sikorsky are already partners on the VH-92 Presidential Helicopter,Combat Rescue Helicopter and Naval MH-60 Helicopter.*
Lockheed is also exploring the option of spinning off or selling its government IT and technology services businesses,which comprise about 6 billion of its estimated 2015 annual sales.As global security market dynamics shift,this review will strengthen our competitive posture,enabling sustained,profitable growth and positioning Lockheed Martin to deliver value for customers,shareholders and employees,Ms.Hewson added.*
Certain defence and intelligence programmes in the Information Systems&Global Solutions segment will not be included in the review.*
Lockheed Martin (LMT),United Technologies (UTX)

Will Airbus Buy Sikorsky?

If United Technologies decides to sell its Sikorsky Aircraft subsidiary in a few months,one of the bidders could be Airbus,Reuters reported today.The CEO of Airbus Group,Allan McArtor,said we are interested to see what UT does with Sikorsky.Airbus is interested in acquiring anything in the areas of defence,space,helicopters,cyber security and 3D manufacturing,Mr.McArtor noted.Sikorsky is valued at 8 billion dollars.
Other possible bidders for the helicopter specialist could include Lockheed Martin,which is already collaborating with Sikorsky on its VH-92 Marine One presidential helicopters,and General Dynamics,which manufactures the Gulfstream line of business jets.Indeed,both Lockheed Martin and Boeing have already voiced their interest in a Sikorsky sale.
Airbus is currently manufacturing helicopters in its Airbus Helicopter division,as well as developing,marketing and selling both civilian and military helicopters.Airbus operates as Airbus Commercial and Airbus Space and Defence,producing commercial jet aircraft,military transport aircraft and special mission aircraft,commercial space launch vehicles,satellites,defence systems and electronics and related services.The France-based company was formerly known as European Aeronautic Defence and Space Company NV,or EADS.*
Airbus Group SE (AIR.PA),Lockheed Martin (LMT),General Dynamics (GD),United Technologies,Boeing (BA)