Boeing Excluded From US Air Force's 'Doomsday Plane' Project, Spotlight On Sierra Nevada For SAOC Contract
Portfolio Pulse from Nabaparna Bhattacharya
Boeing Company (NYSE:BA) has been excluded from the U.S. Air Force's competition to develop the E-4B Nightwatch successor, known as the 'Doomsday Plane'. The exclusion was due to disagreements over data rights and contract terms, specifically Boeing's reluctance to accept a fixed-price contract. This leaves Sierra Nevada Corp as the only known contender for the Survivable Airborne Operations Center (SAOC) contract. Boeing's defense unit has faced significant losses on fixed-price development programs, totaling $16.3 billion since 2014. Boeing's stock saw a slight increase on Friday despite the news.

December 02, 2023 | 9:37 pm
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Boeing's exclusion from the SAOC contract due to contract disagreements may raise concerns about future defense contracts and its impact on the company's financial health, given its history of losses on fixed-price programs.
Boeing's exclusion from the SAOC contract could be seen as a negative development, potentially affecting investor confidence in the company's ability to secure future defense contracts. However, the slight stock price increase suggests that the market may have already priced in this risk or that investors are focusing on other aspects of Boeing's business.
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