Northrop Balks at Pushing for More B-2s : Defense: Bomber’s manufacturer displays reticence in supporting Air Force official’s suggestion for increased production.
Northrop Chairman Kent Kresa said Tuesday that he is not involved in an effort to sell more than the current 20 B-2 bombers ordered by the Air Force, despite recent suggestions by the Air Force that such a plan is under consideration.
Earlier this month, Lt. Gen. Steven Croker, vice commander of the Air Combat Command, called the B-2 a “national asset” and said buying more than 20 bombers “would be well advised.”
Under plans now, B-2 production would begin to wind down in 1995, and the 20th bomber would be delivered in 1997. Extending production would preserve about 12,000 Northrop jobs, as well as generate billions of dollars in sales.
Asked about the chances of more B-2s, Kresa said: “Our current position is to support the (existing 20 aircraft) plan.” He also declined to evaluate whether Croker’s statements reflect a serious possibility of more production, saying it is the Air Force’s role to determine its needs for the B-2.
Aerospace experts said Kresa’s reticence reflects three major concerns:
* By advocating more B-2s now, Kresa would reopen the compromise reached only last year for 20 aircraft and permit critics to mount another effort to kill the program outright. About another $5 billion in funding is necessary to complete the 20 aircraft.
* If the Air Force buys more B-2s, it would hurt Boeing’s prospects for updating the B-52 bomber. Kresa would not want to antagonize Boeing, which is Northrop’s largest customer for commercial aircraft structures. But Boeing’s potential concerns could be counterbalanced because it is a subcontractor on the B-2.
* The timing for selling more B-2s will likely improve in 1994 or 1995, after the bomber has entered service with operational units and the Air Force has a chance to closely evaluate its value, said Robert Paulson, director of McKinsey & Co.’s aerospace practice.
The Air Force consideration of buying more B-2s was first broached by Air Force Chief of Staff Gen. Merrill McPeak before the Senate Appropriations Committee. Croker later elaborated in a speech on May 4 that the Air Force is looking at retiring B-52s and replacing them with B-2s, which are designed to escape detection by enemy radar.
Some analysts dismiss the likelihood that the Clinton Administration would even have funds to buy more B-2s.
But future weapons plans are now going through a comprehensive review that could result in dramatic changes to the missions of the three services and their future procurement plans, Paulson noted.
Donald Hicks, a B-2 advocate who runs a Washington consulting firm, said Croker’s and McPeak’s suggestions reflect serious thought in the Air Force. Hicks said additional B-2s would cost about $650 million, or $2.5 billion for four aircraft per year.
