White House Approves Boeing, Lockheed Fighter Sales To Gulf States

After a lengthy delay, the White House has approved proposed sales of Boeing and Lockheed Martin fighters to three Persian Gulf states and begun informal notification of Congress that the transactions are pending. Under the standard procedures governing foreign military sales, Congress will have a set period of time to object, after which the pending sales will be executed. The Department of State and Pentagon approved the proposed sales some time ago.

The Boeing part of the package includes up to 72 F-15E Strike Eagles for Qatar and up to 40 F/A-18 E/F Super Hornets for Kuwait. The Lockheed Martin part of the package consists of F-16 fighters and related support for Bahrain. All three fighters were first developed during the Cold War and now face the prospect of declining sales as a new, fifth generation of tactical aircraft begins to dominate markets both at home and abroad.

The proposed sale of F-15s to Qatar is especially important to Boeing's tactical aircraft business in Saint Louis, because the F-15 line had been expected to close later in this decade following the completion of a contract with Saudi Arabia. Assuming that Congress does not object, the pending transaction would give the F-15E Strike Eagle line a new lease on life. Contrary to some published reports, the planes Qatar wants to buy would not include low-observable ("stealth") features.

The F-15 sale to Qatar would be worth about $4 billion to Boeing's defense business if all options are exercised. The letter of request from Qatar was for 36 fighters with the option to purchase an additional 36. The F/A-18 part of the package -- consisting of a request for 28 Super Hornets and an option for 12 more -- would be worth about $3 billion if all options are exercised. The U.S. Navy has stated an unfunded need for additional Super Hornets, but that program too faces the prospect of dwindling sales going forward.

Although the Obama Administration has long favored arming overseas partners to assist in dealing with security threats, the sale of fighters to Persian Gulf states has been held up for years awaiting approval of a new military aid package to Israel. The U.S. is committed to assuring that the Jewish state maintains a qualitative military edge over its neighbors. That concern has now apparently been resolved -- allowing Washington to turn to the more urgent threat that Iran poses to Arab states in the Gulf.

Boeing and Lockheed Martin contribute to my think tank; Lockheed Martin is a consulting client.