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Lockheed Gets Fighter Deal

The new Lot 5 production contract will increase the total number of contracted aircraft to 107.

Lockheed Martin

(LMT) - Get Lockheed Martin Corporation (LMT) Report

got a $2.9 billion fixed-price U.S. Air Force contract for continued production of F/A-22 aircraft through November 2007.

"As the Air Force has announced, we have concluded negotiations to produce 24 F/A-22 5th Generation stealth fighter aircraft as previously authorized in the FY-05 Defense Budget. This is great news for the Department of Defense, the U.S. Air Force and the nationwide F/A-22 Raptor team," said Larry Lawson, Lockheed Martin executive vice president and F/A-22 program manager.

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The new Lot 5 production contract will increase the total number of contracted aircraft to 107. To date, 53 aircraft have been delivered to the U.S. Air Force and 66 have completed final assembly. The Air Force is flying the F/A-22 Raptor at four bases across the United States and is preparing for Initial Operational Capability in December with the 1st Fighter Wing's 27th Fighter Squadron at Langley Air Force Base, Va.

The F/A-22 Raptor is built at Lockheed Martin Aeronautics facilities in Palmdale, Calif.; Meridian, Miss.; Marietta, Ga.; and Fort Worth, Texas, as well as Boeing's plant in Seattle. The F/A-22 Raptor program also includes 1,000 nationwide suppliers and subcontractors in 42 states. Final assembly and initial flight testing of the Raptor occur at the Marietta plant facilities.

"This Lot 5 production contract sends a great message to the nationwide industrial base for the F/A-22 Raptor," said Lawson. "These are the subcontractors and suppliers who, with Lockheed Martin and Boeing, put their heart and soul into helping reduce the cost of the aircraft to make sure that our nation gets what it needs to defend our freedom for the next four decades."

On Tuesday, Lockheed shares rose 59 cents to $60.38.