Boeing Raises Bid for Israeli Fighter Project

Boeing Co. on Thursday sweetened its bid to win a $2.5-billion deal to supply Israel’s air force with a new fighter plane in an effort to avoid losing another tender to competitor Lockheed Martin Corp.

Boeing’s spokesman in Israel said the Seattle-based company would commit to an additional $500 million in cooperation projects with Israeli industries if it wins the tender.

He declined to disclose the total cooperation figure now offered, but industry sources put it at $1.25 billion.

Israel’s air force has said in closed-door meetings that it prefers Lockheed’s single-engine F-16 aircraft over Boeing’s twin-engine F-15 because of Lockheed’s lower price tag.

The Defense Ministry has been conducting last-minute negotiations with both companies in recent weeks to drive down prices.

Boeing lost a similar competition to Lockheed in Greece last month, after which the aerospace giant said it would dismiss thousands of employees.

On the New York Stock Exchange, Boeing shares closed unchanged at $41.31, while Lockheed fell $2.19 to close at $39.63.