Boeing Secures Major Defence Deal Amid Industry Struggles
US President Donald Trump has awarded Boeing a major defence contract to develop the Air Force’s most advanced fighter jet, the F-47. The deal, valued at over $20 billion, provides the struggling aerospace giant with a critical boost.
The F-47 is part of the Next Generation Air Dominance (NGAD) program and will replace the Lockheed Martin F-22 Raptor. This sixth-generation aircraft will fly alongside drones and feature cutting-edge stealth, enhanced sensors, and advanced propulsion systems.
“Compared to the F-22, the F-47 will cost less and be more adaptable to future threats – and we will have more of the F-47s in our inventory,” said US Air Force Chief of Staff General David Allvin.
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Boeing Triumphs Over Lockheed Martin
The announcement marks a significant victory for Boeing, which edged out Lockheed Martin to secure the contract. Following the news, Boeing shares surged nearly 5%, while Lockheed Martin’s stock dropped by almost 7%.
“The win is a major boost for the company, which has struggled with cost overruns, schedule delays, and execution on other DoD programs,” said TD Cowen analyst Roman Schweizer.
Lockheed Martin expressed disappointment over the decision, but the high-profile nature of Trump’s announcement may reduce the likelihood of a formal protest.
Boeing’s Challenges and Potential Risks
Despite this major win, Boeing has faced significant financial struggles in recent years. The company reported a $7 billion overrun on its KC-46 tanker project and a $2 billion loss on its Air Force One modernization contract. Its commercial division also suffered setbacks, including the grounding of 737 MAX jets and an $11.8 billion loss in 2024.
Senator Mark Kelly, a former Navy pilot, warned about the challenges ahead. “A program of this size and complexity requires careful oversight to make sure it doesn’t fall behind or have cost overruns,” he said.
Adding another layer of complexity, Trump’s tariffs on raw materials could threaten Boeing’s supply chain, potentially increasing production costs and delaying deliveries.
Strategic Importance of the F-47
The F-47 will act as the quarterback of future drone fleets, designed to penetrate the air defences of China and other potential adversaries.
“We’re going to write the next generation of modern aerial warfare with trump this,” said General Allvin.
Defence Secretary Pete Hegseth emphasised the project’s strategic significance. “The future fleet sends a very clear, direct message to our allies that we’re not going anywhere.”
The Air Force has not disclosed the total number of F-47s it plans to produce. trump However, Allvin confirmed that there will be more F-47s than F-22s, of which only 180 are currently in service.
Criticism and Concerns Over Costs
Some experts question whether another high-end manned fighter jet is trump necessary. Dan Grazier, a military procurement analyst, raised concerns over cost and strategic direction.
“$20 billion is just seed money. The total costs coming down the road will be hundreds of billions of dollars,” he said.
Elon Musk has also expressed scepticism about the long-term value of expensive manned fighter jets, favouring drone-based warfare as a more cost-effective solution.
A Historic Name for the Future Jet
The Air Force confirmed that the F-47 designation carries historical significance.
“It honours the legacy of the P-47, whose contributions to air superiority during trump World War II remain historic. Additionally, the number pays tribute to the founding year of the Air Force, while also recognizing the 47th President’s pivotal support for the development of the world’s first sixth-generation fighter,” the statement said.
The Road Ahead
While Boeing celebrates its victory, the challenges of delivering a next-generation trump fighter jet remain immense. The Air Force aims to ensure the F-47 meets its ambitious technological and operational goals while keeping costs under control.
With China’s military advancements accelerating, the F-47 could play a trump crucial role in maintaining US air superiority. However, its long-term success will depend on Boeing’s ability to execute the program efficiently and avoid the pitfalls that have plagued past projects.
