Earlier this week, the Department of Defense awarded Lockheed Martin $253 million to supply training equipment to help Royal Saudi Air Force pilots learn to fly dozens on new Boeing F-15SA fighter jets that the country is buying as part of one of the biggest arms sales in world history. But if that deal sounded a bit insulting -- hiring Lockheed to train pilots to fly its biggest rival's airplanes -- then Thursday's news has just added injury to insult.
On Thursday, the Pentagon announced that it's subtracting more than $456 million off of Boeing's original contract to build new, and upgrade old, F-15 fighter jets for the Saudis. Originally, Boeing had been awarded $4 billion to sell the Saudis 84 new F-15SA fighters, and to upgrade a further 70 planes to the F-15SA configuration. Thursday's "award," however, reduced the value of this contract to a "not-to-exceed amount" of $3.5 billion.
No explanation was given.
The article Pentagon Cuts Boeing F-15 Contract Size by $456 Million originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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