Boeing looks East

Asian Defence & Diplomacy

June 12, 2011

Neelam Mathews

With spending waning in the West and demand escalating for military aircraft in Asia and the Middle East, Boeing is aggressively looking at the region for its defense business.
On June 3, the Boeing Company issued 60-day advance layoff notices to approximately 510 employees in its Space Exploration division, resulting primarily from the planned completion of the Space Shuttle program. "It's certainly a challenging environment," Dennis Muilenberg, chief executive of Boeing's defense, space and security unit was quoted telling reporters in Singapore. "Our growth prospects are somewhat muted. We anticipate steady, moderate growth in our defense business."
In India, Boeing is celebrating the clearance by the Indian government for purchase of ten heavy lift transporters - C-17s - valued at $4.1billion. Six options have also been cleared. The order is expected to be awarded at a later date.
Trials in India have also been completed for 22 assault helicopters valued at $1.4 billion where  Boeing’s AH-64D Apache Longbow Block III. is competing against the Russian-made Mi-28NE.

Apache offers a range of capabilities including lethal attack, peacekeeping, reconnaissance over land and sea. India is believed to have requirements for attack helicopters for meeting the needs of operators in both military and paramilitary markets.