Boeing has been selected to develop a new-generation stealth fighter for the U.S. Navy, the Pentagon said on September 29. This is the company's second consecutive major victory in the fighter aircraft sector and concludes several months of delay for a program that is central to the U.S. strategy for countering China in the Pacific. UNN reports this with reference to Reuters.
Details
Boeing beat its competitor, Northrop Grumman Corp., in the competition for a $20 billion development contract to produce prototypes. The program could grow to hundreds of billions of dollars over its lifetime as production ramps up and, potentially, as international customers place orders.
In March last year, Boeing was also selected to develop the new F-47 stealth fighter for the U.S. Air Force, securing two major sixth-generation fighter development contracts in a row.
Boeing was viewed as a strong contender throughout the competition because of its decades-long history of developing carrier-based fighters for the U.S. Navy, including the F/A-18E/F Super Hornet, which the new fighter is intended to replace. This experience helped dispel concerns expressed by defense officials about whether Boeing would be able to provide enough engineers and suppliers simultaneously to carry out the F-47 and U.S. Navy fighter development programs—concerns that, it appears, were resolved in the company's favor, the publication writes.
Boeing shares rose 2.25% in after-hours trading on Tuesday, while Northrop shares fell 3.5%.
The new aircraft, currently designated "F/A-XX," will become the centerpiece of the U.S. Navy's next-generation family of Air Dominance systems.
The aircraft "is America's most important, non-negotiable investment in national security and long-term air combat capabilities," Michael Duffy, the Pentagon's chief weapons buyer, said in a statement.
The new aircraft is expected to have advanced stealth capabilities, improved range and endurance, as well as the ability to integrate with unmanned combat aircraft and naval carrier-based air defense systems.
The U.S. Navy still plans to acquire more than 270 Lockheed Martin F-35C aircraft for its carrier fleet, which will fly alongside the F/A-XX after it enters service. The first production F/A-XX aircraft are expected in the 2030s, while the Super Hornet fleet, which has been in service since the 1990s, is expected to continue flying into the 2040s.