Just four months after announcing that it had scrapped the idea of developing a clean sheet design for a new training jet for the U.S. Air Force, Lockheed Martin Corp. (NYSE: LMT) and its partner, Korea Aerospace Industries (KAI), have successfully completed the first test flight of a modified KAI T-50 training jet.
KAI has sold more than 100 of its T-50 training jets to South Korea, Indonesia, Iraq, the Philippines and Thailand, and the proposed version for the United States includes a fifth-generation cockpit and other upgrades. The Air Force plans to use the so-called T-X to replace the decades-old T-38 training fleet with 350 new training jets to train pilots to fly the F-35.
In late March, the Air Force announced that its planned request for bids to build the new training jet would be delayed by three months, pushing the expected release of the request for proposals (RFPs) out to late December 2016.
That delay will end up adding two years to the time it will take the new plane to reach full operational capability. Initial operational capability remains on the schedule for 2024, but full capability has been pushed out from 2032 to 2034. A contract award is expected in 2017 or early 2018.
Raytheon Corp. (NYSE: RTN) and partners Leonardo-Finmeccanica and CAE are also expected to enter the bidding with a modified version of Finmeccanica’s T-100 training jet, while a team of Boeing Co. (NYSE: BA) and Saab, and another comprised of Northrop Grumman Corp. (NYSE: NOC), BAE Systems and L-3 Communications Holdings Inc. (NYSE: LLL), are expected to propose clean-sheet designs.
Lockheed claims that the modified T-50 meets all the Air Force requirements for the training jet contract and can deliver those requirements on time with the least risk. The company said that it studied clean-sheet designs, but “determined they pose prohibitive risk to [Advanced Pilot Training] cost and schedule requirements.”
Lockheed should know. Its F-35 program may be the poster child for the risks of clean-sheet designs.
It’s Your Money, Your Future—Own It (sponsor)
Retirement can be daunting, but it doesn’t need to be.
Imagine having an expert in your corner to help you with your financial goals. Someone to help you determine if you’re ahead, behind, or right on track. With SmartAsset, that’s not just a dream—it’s reality. This free tool connects you with pre-screened financial advisors who work in your best interests. It’s quick, it’s easy, so take the leap today and start planning smarter!
Don’t waste another minute; get started right here and help your retirement dreams become a retirement reality.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.