WASHINGTON (Reuters) – President Donald Trump awarded Boeing the contract to build the U.S. Air Force’s most advanced fighter jet, known as the F-47, providing the company with a significant victory. The Next Generation Air Dominance program will replace Lockheed Martin’s F-22 Raptor with a crewed aircraft designed to operate alongside drones. Trump unveiled the new jet’s name, the F-47, and mentioned the interest from allied nations in potentially purchasing the aircraft. The engineering and manufacturing contract is valued at over $20 billion, with potential orders worth hundreds of billions over the jet’s lifespan. Boeing’s win over Lockheed Martin caused a surge in its stock price, while Lockheed saw a decline. The F-47 is expected to feature cutting-edge technology such as stealth capabilities, advanced sensors, and powerful engines, making it more cost-effective and adaptable to future threats compared to the F-22. The program aims to develop a sixth-generation fighter to counter adversaries like China and Russia, with improved range, stealth, sustainability, and support capabilities. Boeing’s success with the F-47 comes at a crucial time as the company navigates challenges in its commercial and defense sectors, including issues with the 737 MAX and underperforming defense contracts.
Residential adviser Elon Musk has expressed doubts about the effectiveness of manned high-end fighters, stating that more affordable drones would be a preferable choice. Lockheed, which recently lost out in the bid to construct the Navy’s upcoming carrier-based stealth fighter, now faces an uncertain future in the high-end fighter market after the defeat. “Despite our disappointment with the result, we believe that we presented a competitive proposal,” Lockheed mentioned in a statement. “We will be looking forward to engaging in further discussions with the U.S. Air Force.” Although Lockheed still has the option to challenge the government’s decision to award the contract to Boeing, the announcement made by Trump during a prominent press conference may dampen the prospects of any public dispute from the defense company based in Bethesda, Maryland. (Reporting by Mike Stone in Washington; additional reporting by David Shepardson; Editing by Chris Sanders and Rod Nickel)
