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DSCA Notifies Congress of Australian F/A-18 and EA-18 Sales

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On Thursday, America's Defense Security Cooperation Agency announced (link opens in PDF) that it has notified Congress of plans to make a "foreign military sale" to Australia of up to 12 Boeing (NYSE: BA  ) F/A-18E/F Super Hornet fighter-bombers and 12 Boeing EA-18G Growler electronic warfare aircraft, along with associated equipment, parts, training, and logistical support.

The value of the planned sale is estimated at $3.7 billion -- shipping included -- and includes the planes, 48 installed General Electric (NYSE: GE  ) F414-GE-402 engines (and six spares), plus radar, ECM, avionics, and similar electronic equipment installed by contractors ranging from Northrop Grumman (NYSE: NOC  ) to Raytheon (NYSE: RTN  ) to Exelis (NYSE: XLS  ) . (Building an F-18 is truly a team effort.)

Justifying the sale, DSCA advised Congress: "Australia is an important ally in the Western Pacific that contributes significantly to ensuring peace and economic stability in the region. Australia's efforts in peacekeeping and humanitarian operations have made a significant impact on regional political and economic stability and have served U.S. national security interests."

As such, DSCA reassured Congress: "This proposed sale is consistent with those objectives and facilitates burden sharing with our allies." Furthermore, "there will be no adverse impact on U.S. defense readiness." And finally, "the proposed sale of this equipment and support will not alter the basic military balance in the region." 

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  • Report this Comment On March 03, 2013, at 11:34 AM, gallenjag wrote:

    It is always amazing how M/F is always negative on Boeing. They have a battery problem to a really great airplane and the sky is falling in a totally different division of the company.

  • Report this Comment On March 03, 2013, at 10:01 PM, namsaev wrote:

    I have no problem with this sale.

    It's sending planes to Egypt I have a problem with.

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Rich Smith

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

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