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Market News

Boeing bags $9.2 billion contract from the US Air Force

The US Air Force has selected Boeing (BA) for the T-X pilot training program that is valued up to $9.2 billion, in which the Air Force will initially procure 351 jets, 46 simulators and related ground equipment, and up to a total of 475 jets and 120 simulators, should they be ordered. Shares of Boeing […]

September 28, 2018 2 min read
Market News

The US Air Force has selected Boeing (BA) for the T-X pilot training program that is valued up to $9.2 billion, in which the Air Force will initially procure 351 jets, 46 simulators and related ground equipment, and up to a total of 475 jets and 120 simulators, should they be ordered. Shares of Boeing […]

· September 28, 2018

The US Air Force has selected Boeing (BA) for the T-X pilot training program that is valued up to $9.2 billion, in which the Air Force will initially procure 351 jets, 46 simulators and related ground equipment, and up to a total of 475 jets and 120 simulators, should they be ordered. Shares of Boeing almost touched its 52-week high of $374.48 during midday trading on Friday.

Two years back, Boeing partnered with Swedish defense company Saab and created two Boeing T-X aircraft especially for the US Air Force training purpose with a plan to operate them in 2024. Saab reported that the initial $813 million award to Boeing covers the engineering and manufacturing development of the first five aircraft and seven simulators.

Saab added that it has not obtained the order from its US counterpart at this point and over 90% of Boeing’s offering will be made in the US, supporting over 17,000 jobs in 34 states.

The company has been winning contracts on a regular basis this year. Boeing received an order to build two planes for the US President amounting to $3.9 billion earlier this year. In August, the defense company bagged an $805 million Navy tanker contract. Last week, Boeing reported that it will provide 84 MH-139 helicopters to the U.S. Air Force to replace the UH-1N Huey helicopters in a deal worth $2.4 billion.

The Chicago-based aircraft maker won the US Air Force bid competing with Lockheed Martin (LMT) and Italian aerospace company Leonardo. While Lockheed Martin’s shares were up slightly during the regular trading session, Boeing shares continued to trade in the positive territory. Boeing stock has gained 26% so far in this year and 46% in the past 12 months.

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