Raytheon Wins Pact Worth $1.22 Billion

Raytheon Co., the third-largest U.S. defense contractor, was awarded a five-year contract valued at as much as $1.22 billion for 234 aircraft to train Air Force and Navy pilots.

An initial one-year contract for 40 planes, ground-based training devices and technical support is valued at $193 million. Deliveries of the planes are scheduled to begin in 2004. The Air Force and Navy have options for 194 of the T-6A Texan II planes through 2008, said Tim Travis, a Raytheon spokesman.

The military’s Joint Primary Aircraft Training System program calls for nearly 800 aircraft through 2017. The Air Force approved full production of the plane last month after Raytheon fixed problems that had delayed the decision four times since January 2000, including engine malfunctions and flaws in the plane’s air-conditioning system.

Shares of Lexington, Mass.-based Raytheon fell 58 cents to $31.89 on the New York Stock Exchange. The T-6A contract is the largest received by Raytheon’s Wichita, Kan.-based aircraft unit.