Raider price increase and looking back on the last Mustang
Raider price increase and looking back on the last Mustang
The B-21 may cost more than expected and remembering the last USAF F-51D Mustang
“None would dare to aver that there will be no more war, for if that were so then the problem would have been forever solved; and if wars there are to be they will be lost or won in the air.”
-Brig Gen P.R.C. Groves, RAF, 1922
Mission Briefing
In the world of advanced military aviation, Northrop Grumman's journey with the B-21 Raider, a cutting-edge stealth bomber, has been a mix of progress and challenges. As the last quarter of 2023 unfolded, the company faced a significant financial hurdle. They reported a substantial pre-tax charge of nearly $1.6 billion on the B-21 Raider program as it transitioned into its low-rate initial production phase.
This unexpected financial impact primarily stemmed from escalated production costs and broader economic disturbances (inflation). During a recent earnings call with investors, Northrop Grumman officials delved into the specifics of this charge. They pointed out that $143 million of it was linked to cost increases in the initial production lot of the B-21.
The United States Air Force has ambitious plans for the B-21 Raider. They intend to build a fleet of at least 100 of these stealth bombers, crafted by Northrop, starting in the mid-2020s. The B-21 stands out for its advanced stealth capabilities, designed to undertake strike missions deep in enemy territory, even against the most sophisticated radar and air defense systems.
The B-21 program has, by and large, been on track and successful. December 2022 saw its public unveiling, and by the following year, the bomber had progressed into the flight-testing stage at Edwards Air Force Base in California. The Pentagon, encouraged by the ground and flight test results, greenlit the start of production towards the end of the year.
However, 2023 brought its share of financial strain. Kathy Warden, Northrop's Chief Executive Officer, had been cautioning investors about potential losses as the B-21 transitioned into its production phase. These warnings have now materialized into reality. Warden expressed disappointment in the charge incurred and acknowledged that the initial assessment of production conditions did not pan out as expected. Despite this setback, she remains optimistic about Northrop's future performance.
This charge led to a considerable loss for Northrop’s aeronautics sector, which recorded nearly $1.3 billion in losses for the quarter. Consequently, the company reported a net loss of $535 million. Looking at the entire year of 2023, the picture is slightly brighter. The aeronautics sector's losses stood at $473 million, while the company overall reported earnings of $2.1 billion.
Regarding inflation impacts, Warden mentioned that the Air Force provided approximately $50 million in relief funding for the initial production lot in the previous year. However, she advised investors to temper their expectations for future relief, considering the Pentagon's tightening budget constraints.
Northrop is currently in discussions with the government to explore additional opportunities for inflation relief. With the first B-21's production and ground test completed, CFO Dave Keffer noted that the company now possesses much more insight than it did a year ago. He also mentioned that most suppliers for the Raider program are under contract, with negotiations nearly complete for the rest. Keffer is hopeful that a stabilizing economy and inflation rates will further aid the project.
As Northrop Grumman navigates these challenges, the B-21 Raider program represents not just the complexity of modern military aviation but also the intricate dance between innovation, economics, and strategic defense planning.
This week in aviation history
27 January 1957: A significant chapter in the United States Air Force's story is came to a close. The renowned F-51D Mustang fighters, the last of their kind in active service, are being retired by the 167th Fighter Bomber Squadron. This squadron, part of the West Virginia Air National Guard, calls Shepherd Field in Martinsburg their home, now known as the Eastern West Virginia Regional Airport.
The news service United Press captured the sentiment of the day, declaring "An era in aviation has ended." They were reporting on the final official flight of a P-51 Mustang, a symbol of American air power during World War II. Major James L. Miller, a former ace of the Canadian Royal Air Force, was at the controls of a P-51D. This flight marked not just the end of the Mustang's service, but also symbolized the transition from propeller-driven to exclusively jet-powered fighters in the U.S. Air Force.
Major Miller's journey began at Wright Field, near Dayton, Ohio, and concluded at Patterson Field after a 45-minute flight. Interestingly, the Mustang that was to star in the decommissioning ceremonies couldn't perform due to its age and the need for repairs. As a result, an alternate Mustang had to be flown in for this historic occasion.
The Mustang in question, serial number 44-72948, had a storied history. Delivered to the U.S. Army Air Corps at Mitchel Field in New York in February 1945, it never saw combat as the war in Europe was winding down. However, its service record is impressive: assigned to sixteen different units, nine engine changes, and a total of 1,555 hours flown in nearly 12 years.
Another Mustang, F-51D-30-NA 44-74936, played a crucial role in these events. Flown by Major Miller from Charleston to Wright-Patterson Air Force Base, it now resides in the National Museum of the United States Air Force. It bears the markings of "Shimmy IV," a P-51D that served in North Africa and Italy with the 325th Fighter Group during the war.
"Shimmy IV" has its own fascinating tale. Colonel Chester L. Sluder, its pilot and commanding officer of the 325th Fighter Group, led a significant "shuttle bombing" mission on June 2, 1944. The target was a railroad marshaling yard in Hungary. Later in the year, Lieutenant Norval W. Weers, flying the same plane, was forced to crash-land due to fuel shortage and was captured.
The P-51D Mustang was a marvel of its time. With a length of 32 feet, 3.5 inches, and a wingspan of 37 feet, it was a formidable presence in the skies. Powered by a Packard V-1650 Merlin engine, it could reach speeds up to 442 miles per hour at high altitudes. Its armament included six Browning AN-M2 .50-caliber machine guns and the capacity to carry bombs or rockets.
This transition marked the end of an era and the beginning of a new chapter in military aviation. The Mustangs, especially the P-51D variant, left an indelible mark on the history of aerial combat. North American Aviation produced over 8,000 of these iconic fighters, a testament to their significance and prowess.
So, as we remember the final flight of the Mustang, we not only recall a remarkable aircraft but also a pivotal moment in the evolution of military aviation. The Mustangs may have retired from service, but their legacy continues to soar in the annals of history.
In case you missed it
The T-7A Redhawk could be Boeing’s best chance to stay in the fighter business:
Photo Outlet
Here’s a P-51 from last year’s Wings Over Houston airshow:
Post Flight Debrief
That’s all for this week, thanks for reading! If you know a fellow aviation enthusiast that would enjoy these weekly newsletters, then please forward this along. Now you know!
-Tog