Trump picks Boeing over Lockheed for major fighter jet contract

Thomson Reuters

· Posted: Mar 21, 2025 6:38 PM EDT | Last Updated: 11 minutes ago

U.S. President Donald Trump connected Friday awarded Boeing the declaration to physique the U.S. aerial force's astir blase combatant pitchy yet, handing the institution a much-needed triumph and boosting its shares.

The Next Generation Air Dominance (NGAD) programme volition regenerate Lockheed Martin's F-22 Raptor with a crewed craft built to participate combat alongside drones.

Trump, the 47th president, announced the caller jet's name, the F-47.

"We've fixed an bid for a lot. We can't archer you the price," Trump told reporters successful the Oval Office.

Boeing shares roseate 5 per cent after the U.S. institution bushed retired Lockheed Martin for the deal. Lockheed's shares fell astir 7 per cent.

"Our allies are calling constantly," Trump added, saying overseas income could beryllium an option. "They privation to bargain them also."

WATCH | Boeing's information record:

For Boeing, the triumph marks a reversal of luck for a institution that has struggled connected some the commercialized and defence sides of its business. It is simply a large boost for its St. Louis fighter pitchy accumulation business.

The nonaccomplishment is different stroke to Lockheed aft it was eliminated from the contention to physique the navy's next-generation carrier-based stealth fighter, and amid increasing discontent from the Pentagon implicit delays successful upgrading its F-35 combatant jet.

In caller weeks, Trump met with Lockheed CEO Jim Taiclet to sermon the F-35, according to 3 sources.

The engineering and manufacturing improvement declaration is worthy much than $20 cardinal US. Boeing's triumph means it volition marque the pitchy combatant and person orders worthy hundreds of billions of dollars implicit the contract's multi-decade lifetime.

"We admit the value of designing, gathering and delivering a sixth-generation combatant capableness for the United States aerial force," Steve Parker, who leads Boeing's defence business, said successful a statement. "In mentation for this mission, we made the astir important concern successful the past of our defence business."

The plane's plan remains a intimately held secret, but would apt see stealth, precocious sensors and cutting-edge engines.

"Compared to the F-22, the F-47 volition outgo little and beryllium much adaptable to aboriginal threats — and we volition person much of the F-47s successful our inventory," said main of unit of the aerial force, Gen. David Allvin.

NGAD was conceived arsenic a "family of systems" centred astir a sixth-generation combatant to antagonistic adversaries specified arsenic China and Russia.

Allvin said the F-47 volition person importantly longer range, much precocious stealth and volition beryllium much easy supported than the F-22.

Major triumph for struggling Boeing

Boeing's commercialized operations person struggled arsenic it attempts to get its best-selling 737 Max pitchy accumulation backmost up to afloat speed, portion its defence cognition has been weighed down by underperforming contracts for mid-air refuelling tankers, drones and grooming jets.

"The triumph is simply a large boost for the company, which has struggled with outgo overruns, docket delays and execution connected different Department of Defence programs," said Roman Schweizer, an expert astatine TD Cowen.

Cost overruns astatine the KC-46 mid-air refuelling tanker programme person surpassed $7 cardinal US in caller years, portion different fixed-price declaration to upgrade 2 Air Force One planes has created a $2-billion US loss for the top-five U.S. defence contractor.

Boeing's portion that makes rider jets has faced aggravated scrutiny since a bid of crises including a mid-air exigency successful January 2024 involving a caller Alaska Airlines 737 Max 9 missing 4 cardinal bolts. In January, Boeing reported an $11.8 cardinal US yearly nonaccomplishment — its largest since 2020 — owed to problems astatine its large units, on with fallout from a onslaught that shuttered accumulation of astir of its jets.

WATCH | How the Alaska Airlines 'trip from hell' happened:

Boeing has besides ceded crushed to Airbus successful the transportation contention and entered the crosshairs of regulators and customers pursuing missteps. The Federal Aviation Administration successful aboriginal 2024 imposed a monthly accumulation cap.

"While disappointed with this outcome, we are assured we delivered a competitory solution," Lockheed said successful a statement. "We volition await further discussions with the U.S. aerial force."

While Lockheed could inactive protestation the government's grant to Boeing, the information Trump announced the woody successful a high-profile news conference could trim the anticipation of a nationalist airing of arguments against the statement from the Bethesda, Md.-based defence firm.

Boeing's grant drew congratulations from Democratic Sen. Mark Kelly but helium warned: "A programme of this size and complexity requires cautious oversight to marque definite it doesn't autumn down oregon person outgo overruns."

Billionaire and statesmanlike advisor Elon Musk has voiced skepticism astir the effectiveness of crewed high-end fighters, saying cheaper drones were a amended option.