Baku, March 22, 2025 – The Europe Today: In a major development for the defense industry, former U.S. President Donald Trump announced on Friday that Boeing has been awarded the contract to build the U.S. Air Force’s next-generation fighter jet, the F-47, under the highly anticipated Next Generation Air Dominance (NGAD) program. The deal, valued at over $20 billion, is a significant win for Boeing, which has faced financial struggles in recent years.
The NGAD program aims to replace the Lockheed Martin F-22 Raptor with a more advanced, crewed fighter jet designed to operate alongside drones in combat. While details of the jet’s design remain classified, it is expected to feature cutting-edge technologies, including stealth capabilities, advanced sensors, and state-of-the-art engines.
This victory for Boeing marks a dramatic turnaround for the company, which has faced challenges on both the commercial and defense fronts. Boeing’s St. Louis, Missouri, fighter jet production business is expected to benefit greatly from this contract, which will span several decades and involve hundreds of billions of dollars in future orders.
Following the announcement, Boeing’s shares rose by 5%, while Lockheed Martin’s stock dropped by nearly 6%. The deal also marks a significant loss for Lockheed Martin, which had been competing for the contract but was ultimately edged out by Boeing.
The NGAD program was conceived as a “family of systems” designed to counter potential threats from global adversaries, particularly China and Russia. It will focus on a sixth-generation fighter jet as a key component of the U.S. Air Force’s future capabilities.
For Boeing, this contract represents a much-needed win after a series of setbacks, including cost overruns and underperforming contracts. In particular, the company has faced challenges with the KC-46 mid-air refueling tanker program, which has experienced over $7 billion in cost overruns, as well as a significant loss on the Air Force One upgrade program.
Lockheed, which was recently eliminated from the competition for the U.S. Navy’s next-generation carrier-based stealth fighter, faces an uncertain future in the high-end fighter market after this defeat. Despite this setback, Lockheed could still protest the award to Boeing, although the public nature of Trump’s announcement may reduce the likelihood of a challenge.
Elon Musk, the billionaire entrepreneur and presidential adviser, has previously expressed skepticism about the need for crewed high-end fighters, suggesting that drones may be a more cost-effective option for future combat scenarios.
This development solidifies Boeing’s position as a key player in the U.S. defense sector, while raising questions about the future of Lockheed Martin’s involvement in the high-end fighter jet market.
