U.S. President Donald Trump awarded Boeing a contract Friday to build the most complex fighter jet of the U.S. Air Force, handing the company a much-needed victory and boosting its stake.
Next Generation Air Advantage (NGAD) plans to replace Lockheed Martin’s F-22 Raptor with crew planes that fight with drones.
47th President Trump announced the name of the new jet F-47.
“We gave a lot of orders. We can’t tell you the price,” Trump told the Oval Office reporter.
Boeing’s shares rose five percent after the U.S. company beat Lockheed Martin to reach the deal. Lockheed’s shares fell nearly 7%.
“Our allies have been calling out,” Trump added, saying foreign sales may be an option. “They want to buy it, too.”
When Boeing pleaded guilty to criminal fraud conspiracy charges related to two fatal crashes, the state violated the reputation of the aviation giant and whether its aircraft were safer.
For Boeing, victory marks a wealth reversal for a company struggling with the business and defense of its business. This is a major driving force for its St. Louis fighter production business.
The loss was another blow to Lockheed after Lockheed had eliminated from the competition to build the Navy’s next-generation carrier stealth fighter, and upgraded its F-35 fighter jets as the Pentagon grew increasingly dissatisfied.
According to three sources, Trump met with Lockheed CEO Jim Taiclet in recent weeks to discuss the F-35.
Engineering and manufacturing development contracts are worth more than $20 billion. Boeing’s victory means it will become an aircraft fighter and receive orders worth hundreds of millions of dollars over the years of its contract’s life.
“We recognize the importance of designing, building and delivering sixth-generation fighter jets,” Steve Parker, who leads Boeing’s defense business, said in a statement. “In preparation for this mission, we made the most important investment in the history of the defense business.”
The design of the aircraft remains a secret to a close attention, but may include stealth, advanced sensors, and cutting-edge engines.
“The F-47 will cost less than the F-22 and will be more suitable for future threats – we will have more F-47s in stock,” said Air Force General David Allvin.
NGAD is considered a “system family” that revolves around the sixth-generation fighter jets to oppose rivals such as China and Russia.
Allvin said the F-47 will have significantly longer ranges, more advanced stealth, and will be more easily supported than the F-22.
Struggling with Boeing’s major victory
Boeing’s commercial operations struggled as it tried to restore production of its best-selling 737 MAX JET to full speed, while its defensive operations were underperformed by medium tankers, drones and training jets.
“Victory is a major boost for the company, which struggles with cost overruns, scheduling delays and executions on other Department of Defense programs,” said Roman Schweizer, an analyst at TD Cowen.
The cost overrun of the KC-46 central refueling tanker program has exceeded $7 billion in recent years, while another fixed-price contract upgraded two aircraft, causing $20 billion in losses to U.S. defense contractors.
Boeing’s units have put the passenger jet fleet under rigorous scrutiny since a series of crises, including the January 2024 air emergency, involving the new Alaska Airlines 737 Max 9 Max 9 missing four key bolts. In January, Boeing reported that most U.S. aircraft production caused $11.8 billion in annual losses due to problems with its main forces and the consequences of the strike, the biggest loss since 2020.
A door plug on Alaska Airlines Flight 1282 flew at speeds below 5,000 meters, creating a huge hole on the side of the Boeing 737 MAX.
Boeing also ceded Airbus in the delivery race and entered the crosshairs of regulators and customers after a mistake. The Federal Aviation Administration’s monthly production cap in early 2024.
“Although we are disappointed with this result, we are confident that we have a competitive solution,” Lockheed said in a statement. “We will await further discussion with the U.S. Air Force.”
While Lockheed can still protest the administration’s award to Boeing, Trump announced the deal in a high-profile press conference that could reduce the possibility of a debate publicly announcing opposition to the agreement of Bethesda, Maryland-based defense company.
Boeing’s awards expressed congratulations from Democratic Senator Mark Kelly, but warned: “The plan of this size and complexity requires careful oversight to ensure it does not lag behind or overspent in costs.”
Billionaire and presidential adviser Elon Musk expressed doubts about the effectiveness of the crew’s high-end warriors, saying cheap drones are the better option.
