F-35 Engines Gather Steam – Analyst Blog
Zacks Market Commentaries (September 2nd, 2009) Writes:
General Electric Co. (GE) and Rolls-Royce Group are gathering support for the second F-35 engine program, which Defense Secretary Robert Gates and President Barack Obama have singled out as unnecessary in the tightening credit environment. Representatives of the two companies met top Pentagon officials recently to offer a fixed-price package on about 100 low-rate production engines for the F-35 fighter.
The deal would cover low-rate production engines to be built from 2012 to 2015. Without F-35, GE would be out of the large fighter-aircraft engine business. Gates recently reiterated his opposition in Fort Worth, Texas, where Lockheed Martin Corp. (LMT) builds the F-35. Lawmakers backing the program are of the view that continuing work on a second engine will stimulate competition and lower costs on the massive $300 billion fighter program in the long run.
United Technologies Corp.’s (UTX) Pratt & Whitney unit has seen the
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