Boeing has secured a $20 billion contract to build America’s next-generation fighter jet, the F-47, offering a much-needed turnaround for the aerospace company after years of setbacks.
The deal, announced by President Donald Trump at the White House, will see Boeing develop the U.S. Air Force’s new sixth-generation stealth fighter under the Next Generation Air Dominance (NGAD) programme. It marks a significant blow to rival Lockheed Martin, which lost out on the contract amid delays in upgrading its flagship F-35.
For Boeing, the win provides a morale and financial boost after a turbulent year that included an $11.8 billion annual loss, production issues with its 737 MAX jet, and cost overruns on other defence contracts. Shares in Boeing rose by 5% following the announcement, while Lockheed’s stock fell nearly 7%.
President Trump, the 47th President of the United States, revealed the aircraft will be named the F-47 and described it as a “vital part of America’s future air superiority.” He hinted at potential foreign sales, saying, “Our allies are calling constantly. They want to buy them also.”
A Fresh Start for Boeing
The contract is part of the U.S. Air Force’s NGAD initiative, aimed at countering future threats from adversaries like China and Russia. The F-47 will be designed to operate alongside drones, offering longer range, improved stealth, and cutting-edge avionics over its predecessor, the F-22 Raptor.
General David Allvin, Chief of Staff of the Air Force, said the F-47 will be more affordable and flexible than the F-22. “It’s more adaptable to evolving threats, with a longer lifespan and advanced support systems,” he added.
Boeing’s defence lead, Steve Parker, called it “the most significant investment in the history of our defence business,” noting the firm has spent years preparing for this opportunity.
Lockheed faces setback amid F-35 delays
Lockheed Martin, headquartered in Maryland, acknowledged the loss but expressed confidence in its proposed solution. The company has faced growing Pentagon frustration over repeated F-35 upgrade delays and was recently excluded from another major Navy stealth fighter competition.
While Lockheed could still challenge the decision, Trump’s public endorsement may reduce the chances of a formal protest. The president’s backing, delivered in a high-profile setting, signals strong government support for Boeing’s role.
The F-47 contract is expected to generate hundreds of billions of dollars in orders over its multi-decade lifecycle, reshaping the balance in the defence aviation industry.
Senator Mark Kelly congratulated Boeing but warned, “This programme demands strict oversight to prevent the budget overruns and delays that have plagued past defence projects.”
Meanwhile, Elon Musk, billionaire entrepreneur and presidential adviser, questioned the decision to invest in high-end crewed aircraft, advocating instead for affordable, autonomous drones.
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