After winning two Navy jet fighter contracts, Boeing could be turning the page
BA•Boeing won the Navy’s F/A-XX fighter contract, worth more than $20 billion in its initial development phase, after winning the Air Force’s F-47 program last year. Production could generate hundreds of billions of dollars over the aircrafts’ lifetimes, but financial success will depend on contract terms.
1. Two fighter wins
Boeing beat Lockheed Martin and Northrop Grumman for the Navy’s F/A-XX contract, following its win of the Air Force’s F-47 program last year. The Navy award’s initial development phase is worth more than $20 billion.
2. Design and experience
People familiar with the competition cited Boeing’s carrier-based fighter experience, investment, digital design tools and approach to upgrade-friendly aircraft as factors in its win. A former Pentagon official said Boeing’s adoption of common design standards was effective.
3. Contract risks
The wins do not guarantee financial success, analysts said, because the outcome will depend heavily on contract terms. Boeing has lost $20.5 billion on five fixed-price development programs, and CEO Kelly Ortberg has said the company will not pursue similar fixed-price development contracts in the future. The F-47 is expected to fly in 2028 and enter service in 2029; the F/A-XX is expected to enter service in the 2030s.
