The Trump administration has shocked industry observers by opting for aerospace company Boeing to build the next-generation US F-47 fighter jets, beating competitor Lockheed Martin.
The Pentagon awarded Boeing a contract for the most ambitious and expensive jetfighter program, despite Boeing not successfully introducing new commercial and military aircraft for over a decade.
The decision to choose Boeing as a Wall Street analyst that surprised Lockheed Martin left Lockheed officials disappointed. According to the Wall Street Journal.
For Boeing, the deal will exceed $50 billion and could arrive at a critical time. This could stabilize the company after a financial set-off, a safety scandal involving the 737's maximum jet, and repeated delays in multiple programs.
The Pentagon's choice is equivalent to Boeing's lifeline, where the government will benefit from a “cost plus” contract that will cover Boeing's development costs and guarantee profits.
The F-47 is designed to work with semi-automatic drones, which boast advanced stealth technology and long-range combat capabilities, essential to counter China's military power.
However, Boeing's limited experience with stealth technology and the ongoing challenges in other defense projects have inspired industry skepticism.
“It was not once a fighter central,” Bank of America analyst Ron Epstein told the Wall Street Journal when discussing Boeing. It highlighted the needs of companies to employ engineers who are skilled enough to successfully deliver such technically sophisticated aircraft.
Boeing's current fighter jets were all developed prior to its 1997 merger with McDonnell Douglas.
Unlike rivals Lockheed Martin and Northrop Grumman, Boeing has no experience in the production of stealth aircraft.
The company's latest military aircraft, the T-7 trainer, was developed jointly with Saab, rather than being produced independently.
Boeing's records regarding military and civil aircraft production have been problematic for the past decade.
Famous delays include the new Air Force OneJet, originally scheduled for delivery in 2023, but are now facing an indefinite delay.
Boeing informed the Air Force that births would occur after President Trump's second term. Frustration from Trump has inspired Boeing CEO Kelly Autoberg to accelerate his progress.
Ortberg responded by pledging to increase efforts to meet accelerated timetables.
Commercial programs are suffering from similar setbacks.
The 777x jet liner was originally scheduled to enter service in 2020, but remains grounded amid repeated delays.
Additionally, two new variations of the Boeing problematic 737 Max Jet remain behind schedule due to increased prevention issues and regulatory oversight following the surprising fuselage panel incident last year involving Alaska Airlines.
For Boeing, securing an F-47 contract represents an important opportunity to reverse the property.
The company invested more than $2 billion in its expansion facility in St. Louis, Missouri, specifically preparing its F-47 project.
President Trump, the 47th Commander who personally announced the deal, appeared to match the numerical designation of fighter jets to his administration.
Trump publicly praised the experimental version of Boeing's F-47, claiming that “from speed to operationality, nothing even close to anything that could be paidloaded,” calling it “the most advanced and deadly aircraft ever built.”
