Shares of Boeing rose over 3% before the opening bell on Wednesday, September 30 after the company secured a deal with the US Navy to develop the next generation of fighter jets.
Boeing shares advanced 3.18% to $193.64 by 2:51 pm IST. The shares closed 1.78% higher at $187.68 on Tuesday, September 29.
Shares inched higher as the US Department of War on Tuesday announced a deal awarded by the US Navy to Boeing for the Sixth-Generation F/A-XX Strike Fighter under the Next Generation Air Dominance (NGAD) initiative.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
The contract, worth at more than $20 billion or nearly Rs 1.92 lakh crore, procures multiple test aircraft for ground, airworthiness, systems, and weapons integration testing, US Department of War said in a statement.
Speaking on the development, Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment said, "The F/A-XX is a critical pillar in our commitment to maintaining peace through strength. F/A-XX will dominate contested airspace, extend operational reach, and deliver a decisive combat advantage for the warfighter."
He added, "The F/A-XX platform represents a crucial, non-negotiable investment in America's national security and long-term air combat capabilities. We are joining forces with Boeing to field these capabilities rapidly, ensuring our warfighters possess the lethal and highly networked systems required to deter aggression, project undisputed power, and secure absolute air superiority."
ALSO READ | India Crosses 50% Milestone In Sustainable Aviation Fuel Readiness: Boeing-RSB Report
The F/A-XX aims to provide advanced carrier-based power projection that extends the range of the most agile and survivable airfields. Additionally, it is expected to be interoperable with manned and unmanned platforms such as Collaborative Combat Aircraft (CCA) and increase the capability of every CCA it teams with.
Under the contract, Boeing will deliver the platform to eventually replace legacy F/A-18E/F Super Hornets and EA-18G Growlers, starting 2030s, and operate alongside the F-35C.
"This achievement marks a new era for the U.S. Navy," said acting Secretary of the Navy Hung Cao. "The Sixth-Generation fighter is a generational leap in air superiority and will provide the world's best aviators with unparalleled capabilities to fight, win, and come home safe. We are excited to partner with Boeing, and for our warfighters to continue to dominate the skies and defeat our nation's enemies," Cao added.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
