The Trump administration has shocked industry observers by choosing aerospace firm Boeing to build the US military’s next-generation F-47 fighter jets — beating out competitor Lockheed Martin.
The Pentagon awarded Boeing the contract for its most ambitious and expensive jet-fighter program yet — despite Boeing not having successfully introduced a new commercial or military aircraft in over a decade.
The decision to select Boeing over Lockheed Martin startled Wall Street analysts and left Lockheed officials disappointed, according to the Wall Street Journal.
For Boeing, the contract could exceed $50 billion and arrives at a critical juncture — potentially stabilizing the company after prolonged financial setbacks, safety scandals involving its 737 MAX jets and repeated delays across multiple programs.
The Pentagon’s choice amounts to a lifeline for Boeing which will benefit from a “cost-plus” agreement whereby the government covers Boeing’s development costs and guarantees profit — a notable departure from Boeing’s recent fixed-price deals, which have generated billions in losses for the company’s defense division.
The F-47 is designed to operate alongside semi-autonomous drones, boasting advanced stealth technology and long-range combat capabilities vital for countering China’s expanding military power.
However, Boeing’s limited experience with stealth technology and ongoing challenges in other defense projects prompted industry skepticism.
“It’s not the fighter central that it once was,” Bank of America analyst Ron Epstein told the Wall Street Journal when discussing Boeing — highlighting the company’s need to recruit engineers skilled enough to successfully deliver such a technologically sophisticated aircraft.
Boeing’s current fighter jets were all developed before its 1997 merger with McDonnell Douglas.
Unlike rivals Lockheed Martin and Northrop Grumman, Boeing lacks experience in stealth aircraft production.
The company’s most recent military aircraft, the T-7 trainer, was co-developed with Saab rather than produced independently.
Over the past decade, Boeing’s record on military and civilian aircraft production has been problematic.
High-profile delays include the new Air Force One jet, originally scheduled for 2023 delivery but now facing indefinite postponements.
Boeing informed the Air Force that the delivery would occur after President Trump’s second term — prompting frustration from Trump, who pressed Boeing CEO Kelly Ortberg to accelerate progress.
Ortberg responded by pledging increased efforts to meet the accelerated timetable.
Commercial programs have suffered similar setbacks.
The 777X jetliner was initially set to enter service in 2020 but remains grounded amid repeated delays.
Additionally, two new variants of Boeing’s troubled 737 MAX jet continue to lag behind schedule due to anti-icing issues and increased regulatory oversight following last year’s alarming fuselage-panel incident involving Alaska Airlines.
For Boeing, securing the F-47 contract represented a crucial opportunity to reverse its fortunes.
The company invested over $2 billion in expanding facilities in St. Louis, Mo., specifically preparing for the F-47 project, which Boeing interim defense chief Steve Parker described as the largest investment in the company’s defense unit history.
Announcing the deal personally, President Trump, the 47th commander-in-chief, appeared to align the fighter’s numerical designation with his administration.
Trump publicly praised Boeing’s experimental version of the F-47, asserting, “There’s never been anything even close to it from speed to maneuverability to what it can have to payload,” calling it the “most advanced, most capable, most lethal aircraft ever built.”
