The United States on Wednesday began notifying lawmakers that it has approved $7 billion in long-stalled sales of Boeing fighter jets to Kuwait and Qatar, and more than $1 billion in Lockheed Martin jets to Bahrain, sources familiar with the decision said.
The
sales had been pending for more than two years amid concerns raised by Israel,
Washington's closest Middle East ally, that arms sold to Gulf Arab states could
be used against it, and criticism of Qatar for alleged ties to armed Islamist
groups.
US
officials began notifying lawmakers informally about the sale of 36 Boeing F-15
fighter jets to Qatar valued at around $4 billion, and 28 F/A- 18E/F Super
Hornets, plus options for 12 more, to Kuwait for around $3 billion, the sources
said.
They
also told lawmakers about plans to sell 17 Lockheed F-16 fighter jets to
Bahrain, plus upgrades of up to 20 additional aircraft.
The
deals will be formally announced once the 40-day informal notification process
has ended. Then lawmakers will have 30 days to block the sales, although such
action is rare.
Reuters
reported earlier this month that the US government was poised to approve the
long-delayed sales to Kuwait and Qatar.
The
State Department said it could not comment on any ongoing
government-to-government arms sales.
Delays
in the process had caused frustration among US defense officials and industry
executives, who warned that Washington’s foot-dragging could cost them billions
of dollars of business if buyers grew impatient and sought other suppliers.
The
approval of the fighter jet sales comes as the White House tries to bolster
relations with Gulf Arab allies who want to upgrade their military
capabilities. They fear the United States is drawing closer to Iran, their
arch-rival, after Tehran's nuclear deal with world powers last year.
Sources
said officials at both the State Department and Pentagon had largely agreed to
the deals some time ago, but had been awaiting final approval from the White
House.
Qatar,
home to the largest US air base in the Middle East, and Kuwait have ramped up
military spending after uprisings across the Arab world and amid rising
tensions between Sunni Muslim Gulf Arab states and Iran, the region's Shi'ite
power.
Both
Qatar and Kuwait are part of a 34-nation alliance announced by Saudi Arabia in
December aimed at countering Islamic State and al Qaeda militants in Iraq,
Syria, Libya, Egypt and Afghanistan.
The
sales will boost fighter production for both companies.
Boeing's
F-15 line is set to close in 2019 after Boeing completes work on a large order
for Saudi Arabia, unless a follow-on order is approved.
As
orders slow, Boeing is increasingly relying on technology upgrades and services
sales to maintain its revenue stream from fighter jets, Shelley Lavender,
president of Boeing's military aircraft division, said in an interview.
The
company is adding new technology to the F-15 and F/A-18 and other aircraft, and
is refurbishing them on the same assembly lines use to build new aircraft, she
said.
When
the current fighter jet lines end, that loss of revenue will be offset by
upgrade efforts. "We're blurring the traditional lines of new aircraft
builds and sustainment," Lavender said.
Boeing's
broad portfolio from commercial derivatives rotocraft, autonomous vehicles,
fighters and weapons "will allow us to remain healthy for the decades to
come," she said.
Byron
Callan with Capital Alpha Partner said he expected all three sales to be
approved.
Original
post: arabianbusiness
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