The US Defense Department chose Lockheed Martin Corp over Boeing Co on Friday to build its high-tech, next-generation fighter jet, a contract that will be worth at least US$200 billion, the largest in the department's history.
Air Force Secretary James Roche announced Lockheed and its partners were the winner of a US$25 billion engineering and manufacturing development contract that is expected to lead to orders for 3,000 supersonic F-35 jets with radar-evading capabilities.
Roche did not explain in detail why Lockheed was picked but said that during the review process the company's proposal "emerged continuously as the clear winner. ... We looked at performance. There was no aesthetics, there was no beauty contest."
Lockheed Chairman Vance Coffman said his company would honor the trust shown by the Defense Department "by building a truly remarkable, capable and affordable multi-role fighter, on schedule and on cost."
The F-35 will replace the aging fighter jets of the US Air Force, Navy and Marines, with modifications to fit the needs of each branch. It also will be used by Britain's Royal Air Force and Navy, which want 150 of the planes. Britain has committed US$2 billion toward development.
The Defense Department gave Boeing and Lockheed US$660 million each in 1996 for research and development of prototypes that could take off quickly, land vertically and on carrier decks, evade radar and provide all the high-tech cockpit gadgetry demanded by modern warfare.
Boeing Chairman Phil Condit said the contract loss would cause the company to lower its revenue forecast by US$1 billion next year, to about US$55 billion.
The first 22 planes are to be delivered in 2008.
Each F-35 will cost about US$40 million. The version with the ability for short takeoff and vertical landings will cost more, but less than US$50 million.
Lockheed, based in Bethesda, Maryland, has said the contract would add up to 9,000 jobs at its Lockheed Martin Aeronautics division in Fort Worth, Texas, which currently employs 11,000 people. Also See Boeing Inside
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