Boeing wins contract for next-gen US fighter jets

Boeing secured a $20 billion Pentagon contract to build the F-47, its next-gen fighter jet, President Donald Trump announced yesterday.

The embattled company beat Lockheed Martin and is set to replace its supersonic stealth plane, the F-22 Raptor, America’s most advanced fighter jet. 

The new high-tech machine will feature advanced stealth, long-range strike capabilities and the ability to operate with drones. It is expected to enter service in the next decade.

The contract marks a major milestone for Boeing as it stands to make billions manufacturing the planes for several years in the future.

The planemaker lost the F-35 contract to Lockheed Martin in 2001.

The win also follows years of struggles, including production delays and safety concerns. The contract is expected to boost its defense sector, which has faced financial losses. 

Boeing is also negotiating a plea deal over the 737 MAX crashes and seeking the Federal Aviation Administration’s (FAA) approval to ramp up production of its bestselling 737s.

Following the contract announcement, Boeing’s stock rose 3%, while Lockheed’s dropped nearly 6%.

The Pentagon expects to field the first F-47s before the end of Trump’s administration. Experimental prototypes have been flying for five years.

However, critics argue that the US is already struggling to complete the F-35 program, which is projected to cost over $1.7 trillion.

The Pentagon is working on the Next Generation Air Dominance (NGAD) program to make machines that would take the US to the next level in air dominance.