Lockheed Martin (NYSE:LMT) has pulled out from the United States Air Force’s competition to build at least 75 refuelling tankers, Reuters reported on Monday.
"Lockheed Martin (NYSE:LMT) has decided not to respond to the U.S. Air Force's KC-135 fleet recapitalization Request for Information," Lockheed spokesperson Stephanie Stinn told the publication in a statement.
Lockheed reportedly instead plans to focus its resources on "new opportunities and priority programs within Lockheed Martin, including development of aerial refuelling solutions in support of the U.S. Air Force's Next-Generation Air-Refueling System initiative."
Airbus Group (EPA:AIR), which partnered with Lockheed in 2018 to offer its A330 multi-role tanker transport, will need to decide if it will continue to go after the multi-billion-dollar contract without Lockheed.
"Airbus remains committed to providing the U.S. Air Force and our warfighters with the most modern and capable tanker on the market," an Airbus spokesperson told Reuters.
Lockheed Martin’s withdrawal from the competition has given The Boeing Company (NYSE:BA)’s KC-46 Pegasus, which has faced numerous performance challenges including issues with an on-board video system and with the boom that connects the tanker to aircraft for refuelling, a leg-up in the three-phase procurement program.
Boeing won the first phase of the program, securing a contract for 179 KC-46s.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on X, formerly known as Twitter, @emilyjjarvie