Boeing has been selected to build the US Air Force’s next training jet in a contract worth up to $9.2 billion over the life of the programme, the Air Force said on Thursday.
Boeing teamed up with Sweden’s Saab AB to develop a new plane for the competition, beating out Lockheed Martin Corp and Leonardo DRS, reports Reuters.
The Air Force currently plans to purchase 351 of the jets and 46 simulators. Additional purchase options on the $9.2 billion contract, first reported by Reuters, could allow the Air Force to buy as many as 475 of the jets and 120 simulators.
The service expects the first jets to be delivered in 2023 with the programme to reach full operation in 2034.
Boeing shares edged higher after the news, to close up 0.6 per cent at $367.38.
The Air Force wants to replace its aging fleet of T-38 planes, which are nearly 50 years old. Analysts have said it could eventually buy up to 600 planes.