Boeing, RTX Win $766 Mil In B-52 Modernization Contracts, Northrop Tapped For Deep Space Radar

The FAA issued a directive requiring inspections of certain Boeing 787 Dreamliner jets due to manufacturing errors. Boeing found gaps exceeding specifications in wing components, which may cause fatigue cracks. The directive affects 17 U.S. planes, with inspection costs up to $413,270 per cycle. Boeing stated the issue dates to 2019 and planes can continue normal operations.

Europe faces air defense shortages due to depleted Patriot and THAAD missile stockpiles, as Ukraine and Middle East allies consume supplies. The US prioritizes other regions, leaving Europe to seek alternatives. South Korea, with proven systems like Cheongung-II, emerges as a potential supplier. Lockheed Martin and Northrop Grumman received a $3B deal to boost production, but analysts warn of long lead times. Europe has spent $50B on defense since 2022, primarily on US systems.

Donald Trump's investment accounts purchased $250,001-$500,000 in Boeing stock on June 18, the same day Boeing won an $880M Navy contract. The disclosure, released August 22, detailed over 1,000 transactions in June, including investments in SpaceX, Berkshire Hathaway, and other companies with government ties. The White House denies conflicts of interest, stating Trump's assets are held in a trust managed by his children.

Raytheon and Boeing secured U.S. Air Force contracts totaling $766M for B-52 support. Raytheon's $603M contract covers radar production and sustainment, while Boeing's $163M order is for bomb rack modernization kits. The Air Force Life Cycle Management Center issued the awards on Aug. 21, with work set to continue through 2031 and 2028, respectively.

Boeing secured a $131.23bn contract for the F-15 Eagle Crest program, covering production, maintenance, and upgrades for the U.S. Air Force and international partners. The contract spans until 2037, with initial funds allocated in 2026. This follows recent F-15-related deals with South Korea and Israel.

Boeing's 17,000 engineers and technical workers rejected contract offers and authorized a strike, with 87-90% voting in favor. Contracts expire Oct 6, and a strike could start Oct 7. Workers demand better pay, benefits, and working conditions. Boeing has activated its strike contingency plan. This follows recent strikes by Boeing machinists and defense workers.