Lockheed in, Boeing out in bidding for C$19B Canada fighter jet contract
Canada's government has officially excluded $Boeing(BA.US$ Super Hornet from the bidding for a potential C$19B (US$14.8B) contract to build 88 new fighter jets to replace the military's aging CF-18s.
The move by Public Services and Procurement Canada means $Lockheed Martin(LMT.US$ F-35 stealth fighter and Saab's Gripen are the only two aircraft still in contention.
The Super Hornet and F-35 were viewed by some observers as the only real competition because of Canada's relationship with the U.S., which includes using fighter jets together to defend North American air space, while Sweden - Saab's home - is not a member of NATO or NORAD.
Boeing saysit is "working with the U.S. and Canadian governments to better understand the decision and looking for the earliest date to request a debrief to then determine our path forward."
According to a report yesterday, Boeing is in the lead to win an order for nearly 50 freighter planes from Qatar Airways.
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Hamish Maclaren : Nice to have some token SAAB competition but the winner will eventually be American, as stated by practial and political reasons. However I suggest Canada toughen up and condition the airplane purchase with paying in crude, delivered via the Keystone XL, when permitted and built. Preferably with warp speed. Win-Win. Canada get airspace security and US get oil security.
Sze How Ng : Great news the stock only fell $5…LMT just can’t get a break…
Scottie Hatmaker : LOL. Usual dithering and procrastinating by Canadians. How long has it taken for them to choose a program? 15 years? Kind of like dithering Canadians and what they’ll do with 5 G and Huawei and brutal military dictatorship of China.
Thankfully nobody has to depend on Canadians for their decisions and defence.
Thankfully we have real countries like Australia who take their security seriously and for which US, Europe, Japan , South Korea and Taiwan can depend on
Ford U : And Boeing still has better YTD returns than LMT.
Lloyd Ghiorso Ford U: One dropped due to speculation and uneasiness, the other... Well nearly by shear luck survived a situation that could have ended it. Anything from the dirt price that is was is "gains". 10yrs LMT almost 3x's BA.
Squid Guy : LMT can keep dropping and I'll keep buying. This company will be just fine long term. Buy for both capital appreciation and dividend growth
muchtime : This would be a huge contract for LMT
Rubyyo : I saw the large down Spike in BA Share Price today. I wondered if there was BA Specific news.