Today, US President Donald Trump has officially awarded Boeing the contract to develop the Air Force’s most advanced fighter jet—a significant triumph for the company at a pivotal moment.
The Next Generation Air Dominance (NGAD) program is set to replace Lockheed Martin’s F-22 Raptor with a crewed aircraft designed to operate in tandem with drones.
While the specifics of the aircraft’s design remain a closely guarded secret, it is anticipated to feature stealth capabilities, advanced sensors, and state-of-the-art engines. As President Trump noted during the announcement, “This cutting-edge aircraft will redefine air superiority for decades to come.”
Following the announcement, Boeing’s shares surged by 5%, a clear indication of investor confidence in the company’s prospects, while Lockheed Martin experienced a nearly 6% decline in their stock value.
A Much-Needed Win for Boeing
This victory represents a significant turnaround for Boeing, which has faced challenges in both its commercial and defense sectors. It delivers a much-needed boost to its fighter jet production facility in St. Louis, Missouri.
The engineering and manufacturing development contract is valued at over $20 billion, with promises of potentially hundreds of billions more in orders over the contract’s multi-decade timeline. The NGAD program was envisioned as a “family of systems,” aimed at countering potential threats from nations like China and Russia.
During the announcement at the Oval Office, President Trump emphasized the strategic importance of this program: “The future of our Air Force depends on innovation, and today marks a leap forward in that mission.”
Boeing’s commercial operations have faced hurdles as the company works to ramp up production of its best-selling 737 MAX jet. Meanwhile, its defense segment has been weighed down by challenges with various contracts, including mid-air refueling tankers, drones, and training jets. Cost overruns in the KC-46 mid-air refueling tanker program have exceeded $7 billion in recent years, and a fixed-price contract for upgrading two Air Force One planes has incurred a $2 billion loss for the prominent defense contractor.
Future Concerns for Lockheed
Lockheed Martin, recently eliminated from the competition to construct the Navy’s next-generation carrier-based stealth fighter, now faces a precarious situation in the high-end fighter market following this latest setback.
Elon Musk, billionaire entrepreneur and presidential adviser, has expressed skepticism regarding the viability of crewed high-end fighters, suggesting that more cost-effective drones may be a superior alternative. “In the long run, the future of warfare may hinge on technology that is less about pilot capability and more about automated efficiency,” Musk remarked.
Although Lockheed retains the option to contest the award given to Boeing, the high-profile announcement by President Trump in the Oval Office may diminish the likelihood of a public dispute over the deal from the Maryland-based defense company.
As the industry watches closely, the implications of this contract extend beyond just Boeing and Lockheed—it marks a critical juncture in the evolution of air combat and defense strategy in the United States.
Edited By Ali Musa
Axadle Times International – Monitoring.
