The U.S. Defense Security Cooperation Agency notified Congress Thursday of plans to sell the Government of Singapore a package of F-16 Pilot Training and associated equipment, plus related parts, training services, and logistical support. If approved, the deal would be worth an estimated $251 million to principal contractor Raytheon (NYSE:RTN).
As DSCA clarified in a press release issued last night, this equipment will include 80 CATM-9M Captive Air Training Missiles (used in training in the use of Sidewinder air-to-air missiles), plus a whole array of equipment and services. All of this equipment and services will be used by Singapore's "Continental United States (CONUS) detachment PEACE CARVIN II" -- a detachment from the Republic of Singapore Air Force that is stationed at Luke Air Force Base in Arizona, and which trains with U.S. Air Force officers here.
DSCA justifies the PEACE CARVIN II program, and the additional equipment and services to be sold for its use, as helping "to improve the security of a friendly country that has been, and continues to be, an important force for economic progress in Southeast Asia" by helping Singapore "to develop mission-ready and experienced F-16 pilots."
According to DSCA, "[T]here will be no adverse impact on U.S. defense readiness as a result of this proposed sale." Also, this sale will not "alter the basic military balance" in southeast Asia.
Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon Company. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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