From The Archives: Forging Industry's New Shape

Shortly after the Earth-shaking “Last Supper” in which he told defense CEOs the industry would have to consolidate to survive the post-Cold War drawdown, Deputy U.S. Defense Secretary William Perry sat down with Aviation Week business editor (and future editor-in-chief) Tony Velocci to reiterate his message. 

“This is a real change of sea state, not just a phase we’re going through,” Perry told Velocci, predicting that most market segments would end up one-third the size they were when Pentagon spending peaked in the mid-1980s. 

He added that the industry should depend on the commercial sector in areas such as electronics, semiconductors and computer software. 

Perry’s push triggered a wave of mergers that led to combinations such as Lockheed/Martin Marietta/Loral, Northrop/Grumman/TRW, Boeing/McDonnell Douglas and Raytheon/Hughes Aircraft. 

The Nov, 15, 1993 issue of the magazine also featured a report from Paris Bureau Chief Craig Covault, who flew on a Russian Bear-H bomber on three missions.

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