Defense Procurement News
Boeing Receives Next Production Order for P-8 Aircraft
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Despite the threat of sequestration and its effect on next year’s budget the Pentagon continues to issue orders as FY12 comes to an end. Many existing hardware contracts received their annual buys over the last few months.
Boeing (BA), for example, just received the latest production lot for the new anti-submarine warfare (ASW) and patrol aircraft for the U.S. Navy. The P-8A Posieden is a modified 737 airliner. The contract is for another 11 aircraft and is valued at close to $2 billion.
The P-8A is replacing the P-3C originally manufactured by Lockheed Martin (LMT). The P-8A has been in development since 2004 and the first squadron is expected to stand up next year.
The aircraft has also been purchased by India in one of the largest defense deals a U.S. company has ever had with it.
