Military

Raytheon Reveals Training Jet Design

Courtesy of Raytheon Co.

Raytheon Co. (NYSE: RTN) used the occasion of the Farnborough Air Show to unveil its candidate to replace the U.S. Air Force’s fleet of T-38 training jets. The T-100, as Raytheon’s entry is called, is variation on the M-346 trainer built by Italy’s Alenia Aermacchi, a division of the Italian industrial giant Finmeccanica, which rolled out its name change to Leonardo at Farnborough as well.

The other members of the Raytheon-Leonardo team are Honeywell International Inc. (NYSE: HON)and CAE USA, a Florida-based subsidiary of Canada’s CAE Inc. (NYSE: CAE). Raytheon is the prime contractor for the group, Honeywell builds the plane’s engines, and CAE supplies ground-based training and simulation.

There are three other teams believed to be assembling bids for the new training jet that the Air Force calls the T-X. The Air Force is expected post a request for proposals late this year and award a contract in 2017 to acquire 350 of the new planes to replace the decades-old T-38 fleet.

The Boeing Co. (NYSE: BA) and Saab have teamed on a clean-sheet design for the T-X. Other expected competitors for the T-X contractor are a clean-sheet design from Northrop Grumman Corp. (NYSE: NOC) and perhaps another clean-sheet design from Lockheed Martin Corp. (NYSE: LMT) in conjunction with KAI, makers of the T-50 jet trainer.

The first phase of the T-X program is valued at about $8.4 billion, and may be the last major contract the Air Force gets to award for several years. Boeing’s KC-46A tanker program and the Lockheed’s F-35 Joint Strike Fighter are both larger in total size than the T-X program, and both have been plagued with cost overruns and delays. The interesting thing to look for is whether that will have any influence on the outcome of the T-X award.

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.