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Sequestration and Budget Uncertainty ‘Destructive Force’ to Defense and Aerospace

“The combination of sequestration and the recent government shutdown is causing chaos for the aerospace industry,” Boeing Defense CEO Dennis Muilenburg recently told Aviation Week.

Muilenburg sat down with the publication for an in-depth conversation about the issues facing the defense industry. He touched on a number of topics ranging from the current budget situation to the cost and technology benefits of the F/A-18 Advanced Super Hornet and the future of the company’s space business.

The impact of the budget challenges have become a destructive force, Muilenburg said. The indecision has led to an inability to do consistent, long term planning. Despite these challenges, the company has been able to grow its international defense customers and build on the strength of the commercial airplane market to invest in the defense and space business.  Additionally, despite the budget challenges Boeing has been able to invest in technology upgrades for products like the F/A-18 Advanced Super Hornet that increase capability while reducing cost. “That is a great value proposition in a budget-constrained environment,” Muilenburg said.

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