Pentagon will end F-22 jet, presidential copter programs

WASHINGTON — The end of a fighter jet built for the Cold War and cancellation of a new fleet of presidential helicopters sparked concerns of job cuts at Lockheed Martin Corp. and its partners — but did not appear to shake Wall Street's confidence in defense stocks.

Defense Secretary Robert Gates said Monday the Pentagon will end the F-22 fighter jet and White House helicopter programs run by Lockheed, but would increase production of the company's Joint Strike Fighter.

Job and other budget figures released by Gates sought to assuage fears of deep cuts at the nation's largest defense contractor and its suppliers, helping Lockheed shares to rise nearly 9 percent.

Gates recommended more than doubling the number of Joint Strike Fighters to 30 in the upcoming budget, which would increase funding to $11.2 billion from $6.8 billion.

According to the Pentagon, there already are 38,000 employees working on the next-generation stealth fighter jet, known as the F-35. That number is anticipated to jump to 82,000 in fiscal 2011.

Still, Bethesda, Md.-based Lockheed has said almost 95,000 jobs — mostly in California, Texas, Georgia and Connecticut — could be at risk if the Pentagon didn't buy more F-22 jets.

Gates offered a very different employment picture, saying the number of direct jobs would fall to 13,000 in fiscal 2011 from 24,000 this year.

JSA Research Inc. analyst Paul Nisbet said the disparity of F-22 and Joint Strike Fighter job figures appeared to "surprise a few people" and was enough to offset Lockheed losing two major programs.

Military analysts widely expected the radar-evading supersonic F-22 jet — considered an outdated weapon system — would not go beyond the 187 already planned. The planes cost $140 million each.

Lockheed said it's assessing the impact of Gates' decision on several defense programs.

Most of the F-22's are being built in Marietta, Ga. and Fort Worth, Texas. Boeing Co. manufactures the wings and other parts in Seattle. The engines are supplied by Pratt & Whitney, a United Technologies Corp. unit, in Middletown, Conn.

Georgia Republican Reps. Phil Gingrey and Johnny Isakson said Gates' decision put thousands of manufacturing jobs at risk. And Jeff Goen, president of the union representing Lockheed's employees in metro Atlanta, said layoffs are inevitable unless Congress restores the fighter program.