WASHINGTON, D.C. — President Donald Trump on Friday awarded Boeing a multi-billion dollar contract to develop the U.S. Air Force’s next-generation fighter jet, giving the defense giant a major win as it looks to revitalize its struggling military and commercial operations.
The contract, valued at more than $20 billion for engineering and manufacturing development, is part of the Pentagon’s Next Generation Air Dominance (NGAD) program. The new aircraft, which will be known as the F-47, is designed to eventually replace Lockheed Martin’s F-22 Raptor and will be built to operate in tandem with unmanned drones.
"The F-47 will be the most advanced, most capable, most lethal aircraft ever built," President Trump said.
Boeing’s stock rose 5% following the announcement, while shares of Lockheed Martin fell nearly 6%. Reuters first reported Boeing’s selection ahead of the official confirmation.
The NGAD initiative is centered around a sixth-generation fighter jet featuring advanced stealth, sensor technology, and next-generation propulsion systems. Eventually, the contract could be worth hundreds of billions of dollars over its decades-long lifespan.
Boeing’s commercial and defense divisions have both faced headwinds in recent years. The company is still working to restore full production of its 737 MAX commercial jet, while its defense unit has been hit by cost overruns on several projects, including the KC-46 mid-air refueling tanker and the new Air Force One aircraft, resulting in billions of dollars in losses.
While Lockheed could still formally protest the contract award, Trump’s high-profile announcement from the Oval Office may limit the likelihood of a public challenge.
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