A Quarter Of Its Workforce May Be Idled If New UAV Contracts Are Not Forthcoming

Military budget cuts may cost General Atomics Aeronautical Systems, Inc. (GA-ASI) as much as 25 percent of its workforce as new domestic and foreign orders for unmanned aircraft decline.

GA-ASI president Frank Pace said in an interview with Reuters at the Dubai Air Show that one of his biggest concerns is a planned 50 percent cut in Predator B purchases by the U.S. military. He said that ongoing restrictions on foreign sales are also eating into the company's bottom line.

Foreign sales of large UAVs capable of carrying 1,000 pounds of payload are forbidden under the Missile Technology Control Regime and require special waivers. Pace said that the mandatory cuts under sequestration means the U.S. military will be buying less of everything, and that they are unable to recoup those sales with exports due to the restrictions.

Pace said there is plenty of interest from foreign governments in Europe as well as in the Persian Gulf region.

(Predator B image from file)

FMI: www.ga-asi.com