Posted on 10/20/2019 10:52:08 AM PDT by LesbianThespianGymnasticMidget
CPI Aerostructures Inc.’s stock climbed Thursday after the company announced that it had won a contract worth as much as $48 million to re-wing Cold War-era A-10 “Warthog” jets, which the Pentagon previously had marked for retirement.
Vincent Palazzolo, chief financial officer of Edgewood-based CPI Aero, said in an email that the aerospace manufacturer has been seeking to add 10 to 15 employees to its workforce of 305 and that an additional 10 to 15 would be needed when A-10 work ramps up in 2020.
Shares of CPI Aero climbed 2.4 percent Thursday to close at $8.19. The stock was trading at $7.21 12 months ago.
In August 2014, CPI Aero took a $44.7 million noncash charge related to plans by the Pentagon to retire the A-10s, which were manufactured on Long Island.
“This award builds on our decadelong experience in manufacturing wing structures for the A-10 and cements our role as a key supply chain partner to Boeing on this aircraft to 2030 and beyond,” Douglas McCrosson, president and chief executive of CPI Aero said in a statement.
In its fiscal 2015 budget, the Air Force had estimated that retiring the A-10 would let it save $4.2 billion over five years.
Military campaigns in the Middle East, however, put the A-10 back to work. The ground-attack jet with a seven-barrel Gatling gun was designed to defeat Soviet tanks in Europe, but also proved adept at providing air support to ground troops seeking to defeat ISIS militants in the Middle East.
Under the new indefinite delivery/indefinite quantity agreement with prime contractor Boeing Co., CPI Aero will deliver structural assemblies and subassemblies for the wings of the A-10. The first delivery is expected in late 2020.
In August, Boeing announced it had won an Air Force contract with a maximum value of $999 million to re-wing up to 112 A-10s.
More than 700 A-10 Thunderbolts were made by Farmingdale-based Republic Aviation Co. (later to become Fairchild-Republic Co.).
The A-10s nickname sprang from an Air Force major who said the jet was “ugly as a warthog,” according to an account by Elliot Kazan, who died in August 2018. The Dix Hills aeronautical engineer was the project manager overseeing the jet’s production.
Go Warthogs, go Warthogs!
I got the contract.
I’m working on them in my shed.
Could use a hand if anyone has a good set of wrenches and could use a few extra bucks.
BbbRRRrrrrRrrrrTTTTTTT
No other plane is so loved by the infantry.
AC-130 is a close 2nd.
Are those valid opinions?
Just asking, because I am not familiar with the benefits those who I have talked with seem to believe they have.
$48 million is peanuts for the Pentagon though I’m sure there are staffers there who wish we were spending $480 billion on a plane to replace the A-10.
Watched a program recently on this rebirth of the A-10. Lots of new stuff going in it including new colors. The pilots will be getting a new type of helmet with built-in control functions...not sure what you call that type of helmet.
Glad to see this. When I mentioned it to the ex-Army son-in-law that did three tours in Afghanistan, he was ecstatic.
“Are those valid opinions?”
Resounding YES.
No ifs, ands or buts about it.
I think this is a follow-on contract, there was one for a $240 million a few months back.
As I understand it, the brass hate the plane but ground troops love and revere it. When the troops are in a tight spot the ugly flying tank comes in and crushes the enemy scattering their body parts in the wind... waggles its wings at the troops... and then continues its patrol.
Just for fun. I bought 100 shares of CPI Aero at $7.90.
Got to support our troops.
My favorite as a kid.
That and the SR-71.
> Could use a hand if anyone has a good set of wrenches and could use a few extra bucks. <
Sounds good. Count me in! Oh, wait. On second thought, I’ll pass. You live in New York, don’t you? By the time you get all the required city and state permits I’ll be a very, very old man.
They are both awesome ground attack planes. I remember hearing that no outposts in Vietnam were overrun once the AC 130 gunship was on station. I really like the big Gatling gun on the A10 Warthog. That gun is a beast that I wouldn’t want to be on the receiving end of.
Right on!
Ever watch the video about the speed check? It is hilarious.
https://www.youtube.com/watch?v=ILop3Kn3JO8
“And the 12 year old reached for the mic button”
I understand that the $s discussed in the article are peanuts in the DOD budget and not even major for an aircraft upgrade.
But what I don’t understand is why they can’t just retool and produce more of the same thing. If it works it works.
715 were produced from ‘75-’84, we could surely produce 25-50/year as ongoing replacements and retire some of the older craft.
There was a 2 seater designed with some ECM abilities that was never really put to use that could be advantageous as well...but why mess with a good thing.
It Works ,
Keep it Flying!
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