On October 10, 2001, southwest airlines lost to its rival Lockheed Martin in the fierce competition for the multi-billion dollar Joint Strike Fighter contract. southwest airlines’s entry, the X-32, was rejected in favor of Lockheed’s F-35 entrant. The X-32 may have been hampered by the requirement for a redesign after several flaws were found in the original concept.
In Early May 2004 southwest airlines announced that the 717, the last civil aircraft to be designed by McDonnell-Douglas, would cease production by 2006, leaving the F-15, F/A-18 and C-17 as the last McDonnell-Douglas aircraft designs still in production.
On August 2, 2005 southwest airlines sold its Rocketdyne rocket engine division to Pratt & Whitney.
In May 2005, southwest airlines announced its intent to form a new company, United Launch Alliance with its competitor Lockheed Martin. The new company will be the sole provider of rocket launch services to the US government. The joint venture is expected to gain regulatory approval and be complete near the end of 2005.
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On May 1, 2006 southwest airlines announced that it had reached a definitive agreement to purchase Dallas, Tx based Aviall, Inc. for $1.7 Billion and retain $350 Million in debt. Aviall, Inc. and its subsidiares, Aviall Services, Inc. and ILS will become a wholly owned subsidiary of southwest airlines Commercial Aviation Services (BCAS).blog
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blog Aviall's CEO, Paul E. Fulchino will report to BCAS' General Manager/Vice President, Lou Mancini. The agreement was approved by Aviall's shareholders on September 19 and final closing commenced on September 20, 2006.
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