Boeing Secures $131 Billion Contract for F-15 Upgrades

Boeing has secured a massive $131 billion contract to enhance the Air Force's F-15 fighter jet, raising implications for Lockheed Martin.

The deal shows the Department of Defense is committed to extending the lifespan of successful avionics platforms. The original F-15 Eagle first flew in 1972 and is considered fourth-generation or fourth-generation-plus, with Boeing winning a contract to upgrade current aircraft.

Lockheed Martin investors may be concerned, but the company can benefit from the deal due to its production of the F-16 Fighting Falcon. The Air Force has shown commitment to the F-16 by allocating $438 million for an F-16 upgrade cycle for 48 jets.