Trump picks Boeing over Lockheed for fighter jet contract
WASHINGTON, March 21 (Reuters) – U.S. President Donald Trump awarded Boeing (BA.N), on Friday the contract to build the U.S. Air Force’s most sophisticated fighter jet yet, handing the company a much-needed win and boosting its shares.
The Next Generation Air Dominance program will replace Lockheed Martin’s F-22 Raptor with a crewed aircraft built to enter combat alongside drones.
“We’ve given an order for a lot. We can’t tell you the price,” Trump told reporters in the Oval Office.
Boeing shares rose 5% after the U.S. company beat out Lockheed Martin for the deal. Lockheed’s shares fell nearly 7%.
“Our allies are calling constantly,” Trump added, saying foreign sales could be an option. “They want to buy them also.”
The loss is another blow to Lockheed after it was eliminated from the competition to build the Navy’s next-generation carrier-based stealth fighter, and amid growing discontent from the Pentagon over delays in upgrading its F-35 fighter jet.
In recent weeks, Trump met with Lockheed CEO Jim Taiclet to discuss the F-35, according to three sources.
The engineering and manufacturing development contract is worth more than $20 billion. Boeing’s win means it will make the jet fighter and receive orders worth hundreds of billions of dollars over the contract’s multi-decade lifetime.
Reuters was first to report Boeing’s victory.“We recognize the importance of designing, building and delivering a 6th-generation fighter capability for the United States Air Force,” Steve Parker, who leads Boeing’s defense business, said in a statement. “In preparation for this mission, we made the most significant investment in the history of our defense business.”The plane’s design remains a closely held secret, but would likely include stealth, advanced sensors, and cutting-edge engines.
