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UPDATE 1-Boeing challenges Denmark over choice of Lockheed Martin jets

Published 2016-09-15, 11:07 a/m
© Reuters.  UPDATE 1-Boeing challenges Denmark over choice of Lockheed Martin jets
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(Adds comment from Danish defense minister)

COPENHAGEN, Sept 15 (Reuters) - Boeing (NYSE:BA) BA.N formally challenged a decision by the Danish government to pick Lockheed Martin's LMT.N F-35 fighter jet over its own Super Hornet, saying on Thursday the choice was based on a "flawed evaluation process".

Boeing said it had submitted a request to the country's ministry of defence that would require it to provide all materials related to the procurement evaluation and decision announced in June.

"We believe the ministry's evaluation of the competitors was fundamentally flawed and inaccurately assessed the cost and capability of the F/A-18 Super Hornet," said Boeing vice president Debbie Rub.

In May, Boeing challenged the Danish government's recommendation to buy 27 fighter jets from Lockheed Martin (NYSE:LMT), questioning data which suggested its Super Hornet fighter jet was a more expensive option. Defense Minister Peter Christensen confirmed that Boeing would get access to the requested information.

"I note that we had a very thorough and transparent process before the Danish choice of fighter jet. This led to a broad political agreement," Christensen said in an email.

A ministry report in May evaluating each fighter jet candidate was based on data estimating that the Super Hornet would have a service life of 6,000 flying hours, while Boeing thinks the right figure for Denmark is 9,500 hours.

The report also concluded that the total cost of the F-35 jet is 42.2 billion Danish crowns ($6.4 billion) while the Super Hornet would cost 60.6 billion crowns. ($1 = 6.6284 Danish crowns)

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