Northrop Joins AX Jet Competition : Defense: Its potential share of the $50-billion project could reduce the company’s reliance on revenue from the B-2.
Northrop was recruited Wednesday to the General Dynamics and McDonnell Douglas team competing for the Navy’s AX attack-jet program, a $50-billion project that potentially could provide a significant new source of business for the Century City aerospace firm.
Under a subcontracting agreement, Northrop would get about 20% of the AX business if the three firms are selected over a handful of other aerospace teams competing for the huge program, Northrop Chairman Kent Kresa said in an interview.
“Northrop has an enormous amount of experience on the B-2 bomber in weapons system integration, building large (plastic) composite structures and . . . Stealth technology,” David J. Wheaton, AX program director at General Dynamics, said in a telephone interview.
Kresa said Northrop’s exact role is yet to be determined, but he envisions that the firm would build “a chunk of the airplane stuffed with whatever systems are included in that section.” The development work would be done at the firm’s Pico Rivera facility.
Since the program is at such an early stage, Kresa said he could not predict the impact on Northrop revenue or jobs. An aircraft development program such as the AX can generate a peak of 8,000 jobs; Northrop could end up with up to 1,600 jobs in the long-term.
The Navy has asked competing aerospace teams to submit AX bids for a “concept evaluation and definition” phase by next Thursday. After 10 months, the field would be narrowed to two teams under a “demonstration/validation” phase. Then, a single winner would be selected for full-scale development.
The Navy plans to buy 575 AX aircraft and the Air Force could eventually buy another 400, boosting the total program to $80 billion--not counting future inflation.
In addition to the team announced Wednesday, a jumble of aerospace firms have formed groups to compete for the program. Among the other teams:
* Grumman, Boeing and Lockheed.
* McDonnell and LTV Corp.
* Lockheed, Boeing and General Dynamics.
General Dynamics and McDonnell Douglas were originally teamed to build the A-12 attack jet, which the Pentagon canceled earlier this year after its cost spiraled out of control and technical development was seriously delayed. The AX program is meant to substitute for the failed A-12.
