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Three go in, two come out
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November 15, 1996: 9:12 p.m. ET
Pentagon to decide which two firms will compete to build new jet fighter
From Correspondent Casey Wian
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LOS ANGELES (CNNfn) - On Saturday, the Pentagon will eliminate one team of companies competing to build the next generation of fighter jets for all four branches of the United States armed forces.
It's a war the Boeing Co., Lockheed Martin, and McDonnell Douglas are desperate to win. (710K QuickTime movie)
The deal would be for 3,000 jets for the U.S. military and possibly another 1,000 for allies. The joint strike fighter could be worth $200 billion and 15,000 jobs over 20 years.
Ironically, the lucrative contract is part of the whole idea of keeping a lid on costs in an era of declining defense spending.
John Kutler, president of Quarterdeck Investment Partners, said the savings will occur over time. (242K WAV) or (242K AIFF)
The Pentagon hopes to accomplish this through versatility.
The plan is for the same basic plane to be able to land on an aircraft carrier or take off vertically so it can replace seven current fighters beginning in 2008.
The competitors said they are ready for battle.
"Our corporation has put this as the No.1 new business opportunity," said David Wheaton, JSF program manager for Lockheed Martin, "so, the resources in terms of personnel and research have been applied."
Lockheed Martin's optimism arises from past success. It has won three of the last four fighter jets competitions and is flush with business.
Boeing is considered the dark horse because it hasn't won a major fighter contract since the 1930's.
McDonnell Douglas, which is teamed with Northrop Grumman and British Aerospace, is viewed as the competitor with the most to gain, or lose, because its commercial aircraft business is slumping.
The teams not eliminated Saturday will build prototypes for a final decision by 2001. 
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