• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?

2

A Nobel economist challenged Elon Musk to donate his entire $1T fortune by 2036. Musk's reply: 'I am actually going to do something along these lines'

3

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

1

Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?

2

A Nobel economist challenged Elon Musk to donate his entire $1T fortune by 2036. Musk's reply: 'I am actually going to do something along these lines'

3

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
TechBoeing

The Navy Could Throw Boeing’s Fighter Jet Business a Life Preserver

By
Clay Dillow
Clay Dillow
Down Arrow Button Icon
By
Clay Dillow
Clay Dillow
Down Arrow Button Icon
March 3, 2016, 3:25 PM ET
MSF07-1693-506.CR2
Aero India 2007 Air show and VIP Flights, F/A-18F Super Hornet MSF07-1693-### 2/4/2007Boeing
Add Fortune on Google for similar content.

The loss of the Air Force’s Long Range Strike Bomber contract to rival Northrop Grumman in October has placed Boeing’s defense business in a tough spot. But a list of “unfunded priorities” submitted to Congress by the U.S. Navy could breathe $1.5 billion in new life into the aerospace giant’s fighter jet business, potentially sustaining key production lines until Boeing can find new foreign customers for aircraft like the F/A-18 Super Hornet.

The U.S. Navy wish list for fiscal 2017 submitted to Congress by Navy Secretary Ray Mabus includes 14 Boeing F/A-18E/F Super Hornets, two Lockheed F-35Cs, and another $433 million for an additional guided missile destroyer (which would be built jointly by Huntington Ingalls and General Dynamics). While there’s no guarantee Congress will move to fund the Super Hornet order, the request could create an opening for Boeing to sustain its F/A-18 production line until a stalled Kuwaiti order for 28 of the aircraft can be finalized.

Get Data Sheet, Fortune’s daily tech newsletter

If the order does materialize it would mark a huge positive development for a Boeing defense unit that could use a break. With legacy fighter jets like Boeing’s F-15 and F/A-18 slated for replacement by Lockheed Martin’s new F-35 and no new combat jet programs up for grabs in the foreseeable future, Boeing’s defense shop finds itself hard pressed to find new customers for its existing aircraft. Without new orders, both the F-15 and F/A-18 production lines will run out of work by the end of the decade, potentially forcing Boeing from the combat jet business altogether.

For a time, it looked like that Kuwait’s 28-aircraft order would sustain Boeing’s St. Louis-based F/A-18 production line until an expected U.S. Navy order of 14 more aircraft in the fiscal 2018 budget could take up the slack. But that deal has been stuck in political limbo for more than a year awaiting U.S. arms export approvals.

Meanwhile Boeing needs to place orders for hundreds of millions of dollars worth of long-lead materials in order to keep its production line prepped to fulfill that Kuwaiti order if and when the needed approvals come through. An order from the U.S. Navy would create some breathing room for Boeing and keep the company from having to pay for those materials out of its own pocket while awaiting a State Department approval for the Kuwaiti deal that may or may not come through.

For more on Boeing, watch:

These “unfunded priorities” are exactly that: unfunded. It’s a wish list. But for the military branches, creating such wish lists is not an idle exercise. In many cases they create an opportunity for Congress to apportion additional funds to spending priorities that didn’t make it into the formal budget requests, or to move money around within budgets to cover new or unforeseen priorities.

The Navy, as it turns out, has good reason for requesting more Super Hornets. The increased aerial fight against ISIS in Iraq and Syria has taxed the Navy’s existing F/A-18 fleet, and because those planes are older, their maintenance requirements are greater. The fact that Lockheed’s troubled F-35 program is years behind schedule has also created a strong argument for the Navy, both for ordering more Super Hornets and for helping Boeing keep the F/A-18 production line alive—just in case.

The first Navy F-35Cs aren’t expected to enter active service until 2018 or 2019, and that’s if the F-35 program doesn’t experience any more major delays. That could create all the incentive Congress needs to buy insurance in the form of new Super Hornets—and to throw Boeing’s fighter jet business a much-needed lifeline.

About the Author
By Clay Dillow
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Tech

TSMC and Tencent break into the top 100 of the Fortune Global 500 list, as Asia rides the AI boom
Asiafortune global 500
TSMC and Tencent break into the top 100 of the Fortune Global 500 list, as Asia rides the AI boom
By Angelica AngJuly 28, 2026
2 hours ago
Nvidia’s Jensen Huang says AI is killing tasks, not jobs—and the white-collar bloodbath narrative gets the future of work ‘exactly backwards’
Future of WorkTech
Nvidia’s Jensen Huang says AI is killing tasks, not jobs—and the white-collar bloodbath narrative gets the future of work ‘exactly backwards’
By Marco Quiroz-GutierrezJuly 28, 2026
3 hours ago
Coinbase and Robinhood are locked in a heated battle ahead of Q2 earnings—but only one is being called the industry’s ‘first hyperscaler’
CryptoRobinhood
Coinbase and Robinhood are locked in a heated battle ahead of Q2 earnings—but only one is being called the industry’s ‘first hyperscaler’
By Jeff John RobertsJuly 28, 2026
3 hours ago
Photo of Trump and Xi Jinping
PoliticsDonald Trump
Trump administration weighs spending nearly half a billion to counter China’s global influence after DOGE cuts halted some initiatives
By The Associated Press and Matthew LeeJuly 28, 2026
4 hours ago
Traders work on the floor of the New York Stock Exchange (NYSE) on July 24, 2026 in New York.
Big TechWall Street
‘A lot of panic around the AI investment’: How a chip slump is driving the Nasdaq toward correction 
By Eva RoytburgJuly 28, 2026
4 hours ago
Top AI companies say they want Chinese models to stay available. Is it genuine?
NewslettersEye on AI
Top AI companies say they want Chinese models to stay available. Is it genuine?
By Emily ForliniJuly 28, 2026
5 hours ago

Most Popular

Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
C-Suite
Why did a $154 billion CEO just endorse stripping most Americans of voting rights—and taking us back to the 19th century?
By Nick LichtenbergJuly 27, 2026
1 day ago
A Nobel economist challenged Elon Musk to donate his entire $1T fortune by 2036. Musk's reply: 'I am actually going to do something along these lines'
Success
A Nobel economist challenged Elon Musk to donate his entire $1T fortune by 2036. Musk's reply: 'I am actually going to do something along these lines'
By Sydney LakeJuly 27, 2026
1 day ago
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
3 days ago
New York City women are making up to $30,000 per month by renting out their closets to strangers
Retail
New York City women are making up to $30,000 per month by renting out their closets to strangers
By Sarah GlodekJuly 27, 2026
2 days ago
LeBron James took a pay cut to maybe live in New York and commute to Philly by chopper, risking double taxation as NYC also tries to ban helicopters
Real Estate
LeBron James took a pay cut to maybe live in New York and commute to Philly by chopper, risking double taxation as NYC also tries to ban helicopters
By Catherina GioinoJuly 27, 2026
1 day ago
I've been teaching college students for decades. Most of them can no longer finish a book
Commentary
I've been teaching college students for decades. Most of them can no longer finish a book
By Austin SaratJuly 26, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.