Boeing Co was chosen to manufacture the US Air Force’s next training jet in a contract worth up to $9.2 billion over the life of the program, the Air Force said.
Boeing joined forces with Sweden’s Saab AB to design a new plane for the competition, beating out Lockheed Martin Corp and Leonardo DRS.
The Air Force at present is planning to buy 351 of the jets and 46 simulators. Additional purchase options on the $9.2 billion contract could enable the Air Force to buy as many as 475 jets and 120 simulators.
The service expects the first jets to be delivered in the year 2023 with the program to reach full operation by 2034.
In its bid, Lockheed had offered a modified version of its T-50 training jet manufactured in conjunction with Korea Aerospace Industries Ltd, while Italy’s Leonardo DRS had offered the T-100, which is a modified version of the Italian aerospace company’s M-346.
Boeing shares crept higher after the new broke out, to finish up 0.6 percent at $367.38. Meanwhile, shares of Korea Aerospace slipped more than 24 percent in Seoul. The company said its group lost the competition because Boeing’s bid was lower.