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Airlines

Boeing and Lockheed Martin Secure Major Defense Contracts

Strategic Insights

— 1 min read

Etihad Airways has ordered 10 Boeing 787-9 Dreamliners and two Boeing 777 Freighters, valued at $2.8 billion. Meanwhile, Lockheed Martin has inked a deal to build 30 F-35 fighter jets for the Pentagon, with a potential value of up to $4 billion. The contracts demonstrate the ongoing demand for military aircraft and defense systems, despite a shrinking defense budget. The deals are also set to boost shares of Boeing, Lockheed Martin, and potentially General Dynamics.

Key Takeaways:

  • Boeing has secured a $2.8 billion order from Etihad Airways for 10 Boeing 787-9 Dreamliners and two Boeing 777 Freighters.
  • Lockheed Martin has signed a deal to produce 30 F-35 fighter jets for the Pentagon, with a potential value of up to $4 billion.
  • The F-35 deal involves 21 aircraft for the Air Force, six for the Navy, and three for the Marine Corps.
  • A definitive contract for the F-35 deal will be finalized next year.
  • Lockheed Martin competes with Boeing and Northrop Grumman on defense department contracts.
  • General Dynamics' CEO, Jay Johnson, sees growing demand for the company's combat vehicles and warships, despite a shrinking defense budget.
  • The company also has opportunities to sell its Gulfstream business jets in China and other emerging markets.

Statistics:

  • Total value of the Boeing order from Etihad Airways: $2.8 billion
  • Potential value of the Lockheed Martin F-35 deal: up to $4 billion
  • Number of F-35 fighter jets to be built: 30
  • Breakdown of F-35 aircraft by branch:

+ Air Force: 21

+ Navy: 6

+ Marine Corps: 3

  • Estimated value of the Gulfstream business jets discussed by General Dynamics' CEO: unknown

Sources:

  • [MarketNewsVideo.com, via COMTEX, Dec 12, 2011]
  • [SmarTrend Alert, Comtex SmarTrend, Nov 30, 2011, indicating an uptrend for BA @ $67.87]
  • [SmarTrend Alert, Comtex SmarTrend, Dec 1, 2011, indicating an uptrend for GD @ $66.47]
  • [SmarTrend Alert, Comtex SmarTrend, Nov 28, 2011, indicating an uptrend for LMT @ $77.00]
  • [Comtex News Network, Inc.]

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