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Lockheed Martin C-130J Contract Raised to 25 Billion Amid Allied Demand

The U.S. increases Lockheed Martin’s C-130J contract ceiling to $25B, extending production and support through 2035 due to growing allied demand.

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This article summarizes reporting by Reuters.

Lockheed Martin C-130J Contract Ceiling Raised to $25 Billion Amid Surge in Allied Demand

The United States government has authorized a significant expansion of its logistical Military-Aircraft agreement with Lockheed Martin, increasing the cumulative value of an existing contract by $10 billion. As reported by Reuters, the modification raises the total Contracts ceiling from $15 billion to $25 billion, securing long-term production and engineering support for the C-130J Super Hercules program.

The announcement was issued on Tuesday, December 23, 2025, by the Department of War, the agency formerly known as the Department of Defense, recently rebranded under a new executive directive. The contract modification ensures that Lockheed Martin’s Aeronautics division in Marietta, Georgia, will continue to deliver, develop, and sustain the C-130J platform through July 2035.

According to official contract data, this is not a single purchase order but an administrative expansion of an Indefinite-Delivery/Indefinite-Quantity (IDIQ) vehicle originally awarded in 2020. The adjustment accommodates a growing backlog of international orders from key allies in the Indo-Pacific and Europe.

Contract Specifications and Scope

The modification, identified as P00014 to contract FA8625-20-D-3000, reflects the enduring relevance of the C-130J airframe in modern military logistics. The Department of War stated that the work will encompass the “delivery, development, integration, and engineering” of the aircraft.

Key details of the agreement include:

  • Contractor: Lockheed Martin Corp., Marietta, Georgia.
  • New Ceiling Value: $25 billion (up from $15 billion).
  • Completion Date: July 16, 2035.
  • Primary Function: Tactical airlift production and sustainment.

While the Reuters report highlighted the top-line financial increase, further analysis of the contract vehicle reveals that this funding ceiling supports Foreign Military Sales (FMS). The Pentagon noted “known congressional interest” in the deal, likely due to the scale of the modification and the strategic importance of the allied nations involved.

Global Demand Drives Production

The $10 billion increase is largely driven by a surge in demand from international partners seeking to modernize their airlift capabilities. As geopolitical tensions rise in both the Indo-Pacific and the Arctic, nations are standardizing on the C-130J to ensure interoperability with U.S. forces.

Indo-Pacific Deterrence

Australia has emerged as a primary driver of this backlog. In 2023, the Australian Department of Defence committed approximately $9.8 billion to expand its fleet from 12 to 20 C-130J aircraft. This acquisition is designed to bolster logistics chains across the vast distances of the Pacific. Similarly, New Zealand has begun taking Delivery of new Super Hercules aircraft to replace its aging C-130H fleet, and the Philippines is modernizing its airlift capacity to support maritime security in the South China Sea.

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European Modernization

In Europe, the focus remains on interoperability and Arctic readiness. Norway is upgrading its fleet to the Block 8.1 standard, which enhances navigation and communication systems for operations in the High North. Meanwhile, Germany and France have operationalized a unique joint C-130J squadron based in Évreux, France, sharing costs and maintenance burdens to fill the gap left by the retired C-160 Transall.

Strategic Context and Market Impact

This contract announcement comes during a period of significant administrative change within the U.S. government. The release was issued under the header of the “Department of War,” reflecting a 2025 executive order that reverted the agency’s name to its pre-1947 moniker. Secretary Pete Hegseth has championed this rebranding as part of a broader initiative to “refocus on warfighting.”

Despite the magnitude of the contract, market reaction was muted. Lockheed Martin stock (NYSE: LMT) closed slightly down (-0.21%) on the day of the announcement. Market analysts have largely maintained a “Hold” rating on the defense giant, balancing the long-term revenue security of the C-130J program against concerns over high valuation multiples in the defense sector.

AirPro News Analysis

The decision to raise the contract ceiling by such a drastic margin, $10 billion, signals that the U.S. government expects the C-130J to remain the global standard for tactical airlift well into the 2040s. While next-generation vertical lift platforms are in development, they have yet to match the payload-range economics of the Super Hercules.

For the workforce in Marietta, Georgia, this modification provides a decade of stability. However, the explicit mention of “congressional interest” suggests that lawmakers are closely watching how the newly rebranded Department of War manages these mega-contracts. The shift in terminology to “War” is more than cosmetic; it aligns with a more aggressive posture in foreign military sales, prioritizing speed of delivery to allies over traditional bureaucratic hurdles.

Frequently Asked Questions

What is an IDIQ contract?
Indefinite-Delivery/Indefinite-Quantity (IDIQ) contracts provide for an indefinite quantity of services or supplies during a fixed period. They allow the government to place orders as needed without negotiating a new contract each time. The $25 billion figure represents the maximum value (ceiling) of orders that can be placed, not a guaranteed payout.

Why is the agency referred to as the Department of War?
In the timeline of this report (December 2025), the Trump administration issued an executive order reverting the Department of Defense to its original name, the Department of War, to emphasize a shift in military philosophy.

Which countries are buying these aircraft?
The primary international customers driving this contract increase include Australia, Germany, Norway, New Zealand, the Philippines, and Egypt.

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Sources

  • Reuters
  • U.S. Department of War (Contracts Dec. 23, 2025)
  • Australian Department of Defence

Photo Credit: PACOM

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Boeing Wins 2 Billion Contract for B-52 Engine Integration Phase

Boeing receives $2.04B contract for B-52 engine integration, advancing the B-52J modernization by May 2033 with Rolls-Royce F130 engines.

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This article summarizes reporting by Reuters and contract data from the U.S. Department of Defense.

Boeing Secures $2.04 Billion Contract for B-52 Engine Integration

The U.S. Department of Defense has awarded Boeing a significant task order valued at approximately $2.04 billion to advance the modernization of the B-52 Stratofortress fleet. According to reporting by Reuters and official Pentagon announcements released on Tuesday, December 23, this funding is dedicated to the B-52 Commercial Engine Replacement Program (CERP), a critical effort to keep the Cold War-era bombers flying into the 2050s.

The contract specifically covers the “Post-Critical Design Review” phase of development. While Rolls-Royce is supplying the new F130 engines under a separate agreement, Boeing, as the prime integrator, is tasked with the complex engineering required to install modern propulsion systems onto the vintage airframes. This award marks a pivotal step in redesignating the fleet as the B-52J.

Contract Scope and Timeline

According to data released by the Pentagon, this cost-plus-incentive-fee contract funds the design, development, and execution of the engine integration. Work will be performed across multiple Boeing facilities, including Oklahoma City, Oklahoma; San Antonio, Texas; Seattle, Washington; and Indianapolis, Indiana.

The Department of Defense expects this phase of the work to be completed by May 31, 2033. The funding structure is incremental, beginning with approximately $35.8 million in fiscal year 2026 research, development, test, and evaluation funds.

Integration vs. Supply

It is vital to distinguish between the engine supplier and the integrator in this multi-billion dollar modernization effort. Rolls-Royce secured a $2.6 billion contract in 2021 to manufacture 608 F130 engines. However, Boeing’s role, funded by this new $2.04 billion award, involves the structural and digital modifications necessary to accept those engines.

The scope of work includes:

  • Nacelle Design: Developing new aerodynamic pods and struts to mount the engines.
  • System Overhaul: Upgrading electrical power generation and cockpit displays to process digital engine data.
  • Prototyping: Modifying and flight-testing two B-52 Military-Aircraft to validate the new configuration before fleet-wide installation.

Strategic Implications: The B-52J

The Commercial Engine Replacement Program is the centerpiece of the Air Force’s strategy to maintain a “two-bomber” force structure, consisting of the stealth B-21 Raider and the standoff B-52J. By replacing the original 1960s-era Pratt & Whitney TF33 engines, the Air Force aims to achieve 30% greater fuel efficiency and significantly reduce maintenance costs.

According to Air Force Global Strike Command leadership, the upgraded bomber will serve a distinct role alongside the stealthy B-21.

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“The B-52J will not be your grandfather’s B-52. With new engines, new radar, and new digital Avionics, it will be a lethal, long-range arsenal plane.”

, Summary of remarks by Air Force Global Strike Command officials

AirPro News Analysis

While this contract award signals a firm commitment to the B-52’s future, the timeline reveals the challenges inherent in retrofitting 70-year-old airframes. The completion date of May 2033 for this development phase aligns with recent reports of schedule slips. Originally, the Air Force targeted an earlier Initial Operational Capability (IOC), but technical hurdles regarding the engine inlet design and aerodynamic integration have necessitated a more cautious timeline.

We observe that the shift to 2033 for the completion of this specific integration phase suggests that the full fleet conversion will be a slow process, requiring the legacy TF33 engines to remain in service longer than initially planned. This places additional pressure on Air Force maintainers to keep the aging engines operational until the transition to the B-52J is complete.

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Photo Credit: U.S. Air Force photo by Airman 1st Class Benjamin Cooper

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Diehl Aerospace Launches EASY Upgrade for Eurofighter Connectivity

Diehl Aerospace introduces the EASY Upgrade, a tablet retrofit enhancing Eurofighter Typhoon connectivity and Manned-Unmanned Teaming capabilities without avionics recertification.

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This article is based on an official press release from Diehl Aerospace.

Diehl Aerospace Unveils “Non-Intrusive” Connectivity Upgrade for Eurofighter Typhoon

Diehl Aerospace, a joint venture between Diehl Aviation and Thales, has announced the development of a new retrofit technology designed to bridge the technological gap between current fourth-generation fighter aircraft and future air combat systems. The solution, dubbed the “EASY Upgrade,” centers on a cockpit-integrated tablet that enables advanced connectivity and Manned-Unmanned Teaming (MUM-T) capabilities without requiring extensive recertification of the aircraft’s primary avionics.

According to the company’s official statement, the primary target for this technology is the Eurofighter Typhoon, though the system is applicable to other existing fighter platforms. The upgrade aims to provide pilots with immediate access to the “Combat Cloud,” allowing them to control remote carrier drones and view high-resolution reconnaissance data in real-time.

The “EASY Upgrade” Concept

The core of Diehl’s innovation is a ruggedized Control and Display Unit (CDU), essentially a military-grade tablet, that integrates into the existing cockpit environment. The manufacturer describes the system as “non-intrusive,” a critical distinction in aerospace engineering.

By operating independently of the aircraft’s safety-critical flight systems, the upgrade avoids the complex, multi-year recertification processes typically required when modifying primary avionics. The system connects to the aircraft to read necessary data but processes mission-specific information, such as drone feeds and dynamic flight routes, on its own hardware.

Florian Maier, CEO of Diehl Aerospace, highlighted the pragmatic approach of this solution in the company’s press release:

“Our goal is to quickly and pragmatically upgrade existing fighter aircraft to meet new requirements. Our developments are an important contribution to ensuring Europe’s air defense is ready for the future.”

Technical Implementation

Diehl Aerospace reports that a demonstrator has already confirmed the technical feasibility of the concept. The system utilizes a “Communication Concentrator Unit” (CCU) or High-Performance Controller to manage data flow between the aircraft, the tablet, and external networks. To handle the massive influx of mission data without overwhelming the pilot, Diehl has developed proprietary algorithms designed to filter and present information intuitively on the new display.

Bridging the Gap to FCAS

A major driver behind this development is the timeline for the Future Combat Air System (FCAS), a sixth-generation multinational project expected to be fully operational in the 2040s. European air forces currently rely on fourth-generation platforms like the Eurofighter Typhoon, which must remain relevant and interoperable during the transition period.

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The “EASY Upgrade” is designed to bring sixth-generation capabilities, specifically the ability to operate within a networked “Combat Cloud”, to these legacy fleets today. This ensures that current aircraft can communicate effectively with future platforms and unmanned systems.

Manned-Unmanned Teaming (MUM-T)

One of the specific capabilities highlighted by Diehl is the control of “Remote Carriers.” These are loyal wingman drones that accompany manned fighters. Through the new tablet interface, pilots can:

  • Interact directly with unmanned systems.
  • Receive live video feeds from reconnaissance drones.
  • Maintain a comprehensive “operational situation picture” that integrates real-time mission data.

Diehl states that the system is designed to extend the man-machine interface “without altering” the existing mission systems, thereby preserving the aircraft’s current certification status while adding significant tactical utility.

AirPro News Analysis

The strategic value of Diehl’s “non-intrusive” approach cannot be overstated in the current defense procurement environment. Full avionics upgrades for fighters like the Typhoon are notoriously expensive and slow, often taking a decade from design to fleet-wide implementation due to rigorous safety certifications.

By decoupling the mission connectivity layer (the tablet) from the flight safety layer (the flight computer), Diehl is effectively proposing a “bring your own device” model for military cockpits. This allows air forces to update software and processing power at the speed of consumer electronics, rather than the speed of military airframe development. If successful, this could set a new standard for how legacy fleets are modernized, prioritizing software agility over hardware permanence.

Frequently Asked Questions

What is the primary aircraft for this upgrade? While the technology is adaptable, Diehl Aerospace has identified the Eurofighter Typhoon as the primary initial target for the upgrade.

Does this upgrade require recertifying the aircraft? According to Diehl, the system is “non-intrusive” and does not require critical modifications to primary flight safety avionics, which avoids the need for extensive new certifications.

What is Manned-Unmanned Teaming (MUM-T)? MUM-T refers to the coordinated operation of manned aircraft (like a fighter jet) and unmanned systems (drones) working together in a mission. Diehl’s upgrade allows the pilot to control these drones from the cockpit.

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Photo Credit: Diehl Aerospace

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Libyan Military Chief Dies in Turkey Plane Crash Near Ankara

A private jet carrying Libya’s army chief and officials crashed near Ankara after defense talks, killing all onboard and impacting Libyan military efforts.

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This article summarizes reporting by Al Jazeera and official statements from Turkish and Libyan authorities.

Libyan Army Chief and High-Level Delegation Killed in Turkey Plane Crash

A private business jet carrying a high-level Libyan military delegation, including the Chief of the General Staff of the Libyan Army, crashed near Ankara, Turkey, on Tuesday evening. Authorities have confirmed that all eight individuals on board, five passengers and three crew members, perished in the incident. The crash occurred shortly after the delegation concluded high-level defense talks with Turkish officials.

According to reporting by Al Jazeera, the aircraft disappeared from radar shortly after taking off from Ankara’s Esenboga Airport. Turkish officials later located the wreckage in a rural area south of the capital. The loss of General Mohammed Ali Al-Haddad marks a significant blow to the Tripoli-based Government of National Unity (GNU) and ongoing efforts to unify Libya’s fractured military institutions.

Incident Timeline and Crash Details

The aircraft, identified as a Dassault Falcon 50 with the registration 9H-DFJ, departed from Esenboga Airport (ESB) at approximately 20:10 local time (17:10 GMT) on Tuesday, December 23, 2025. It was en route to Tripoli, Libya.

Turkish Interior Minister Ali Yerlikaya stated that air traffic control lost the signal with the jet at 20:52 local time. Search and rescue teams, including Gendarmerie units, were immediately dispatched to the last known coordinates. The wreckage was subsequently discovered near Kesikkavak village in the Haymana district, roughly 70 to 75 kilometers south of Ankara.

Preliminary Cause

While a full investigation has been launched by the Ankara Chief Public Prosecutor’s Office, initial reports suggest technical issues were a factor. Turkish officials indicated that the pilot contacted air traffic control to request an emergency landing due to an “electrical failure” moments before the signal was lost. Footage aired on Turkish media reportedly showed a flash of light in the night sky, consistent with a high-impact crash or explosion.

Casualties and Delegation Members

Libyan authorities have confirmed the identities of the five passengers, all of whom were key figures in the western Libyan military establishment. The three crew members, whose identities have not yet been released, also died in the crash.

The deceased delegation members include:

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  • General Mohammed Ali Ahmed Al-Haddad: Chief of the General Staff of the Libyan Army (Tripoli-based).
  • Major General Al-Fitouri Grebeel: Chief of Staff of the Ground Forces.
  • Brigadier General Mahmoud al-Qutawi: Director of the Military Manufacturing Agency.
  • Muhammad al-Assawi Diab: Advisor to the Chief of General Staff.
  • Muhammad Omar Ahmed Mahjoub: A military photographer and media staff member.

“A great loss to the homeland.”

, Prime Minister Abdul Hamid Dbeibah, mourning the delegation

Geopolitical Context and Defense Talks

The delegation was in Turkey for critical defense meetings, underscoring the deep military ties between the two nations. Earlier on Tuesday, General Al-Haddad met with Turkish Minister of National Defense Yasar Guler and General Selcuk Bayraktaroglu, the Chief of the Turkish General Staff.

Turkey remains a primary backer of the Tripoli-based Government of National Unity. The visit coincided with a significant legislative move in Turkey; just one day prior, on Monday, the Turkish Parliament approved a motion to extend the mandate of Turkish troops in Libya for an additional two years. This extension facilitates continued military training and advisory support to forces in western Libya.

AirPro News Analysis

The death of General Al-Haddad creates an immediate and precarious vacuum in the military command structure of western Libya. Al-Haddad was not only a commander but a central figure in the delicate, UN-brokered negotiations to unify the country’s rival armed forces, specifically between his Tripoli-based cadres and the eastern forces led by General Khalifa Haftar.

We assess that his sudden absence may stall these unification talks and could trigger internal power struggles within the western military factions as they vie to fill the leadership void. The timing, immediately following the reaffirmation of Turkish military support, highlights the strategic sensitivity of the situation.

Official Reactions

In Tripoli, Prime Minister Abdul Hamid Dbeibah declared three days of national mourning. In a statement, he praised the deceased officers for their “sincerity and dedication” to the nation. The Turkish Ministry of Defense also issued a statement expressing condolences to the Libyan people and the families of the victims.

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