Boeing Wins $20B Navy Fighter Development Contract

Boeing won the U.S. Navy’s F/A-XX next-generation fighter contract, worth more than $20 billion for its initial development phase, adding to its selection for the Air Force’s F-47 program. The wins give Boeing a leading role in the next generation of U.S. tactical aircraft and could help revive its defense business after years of cost overruns and delays. People familiar with the competition said Boeing’s carrier-jet experience, investment, use of digital design tools and alignment with the Pentagon’s emphasis on aircraft that are easier to upgrade helped it prevail over Lockheed Martin and Northrop Grumman. The award is a major strategic win, but development funding is not the same as production revenue, which is expected years later; a potential protest could also affect the schedule.