Boeing Lands $4 Billion Chinook Contract

In the course of signing a deal expected to "save" U.S. taxpayers $800 million, Boeing (NYSE: BA  ) has just snagged itself a revenue stream $4 billion deep.

On Tuesday, Boeing announced that it has signed an agreement to build 177 CH-47F Chinook heavy lift helicopters for the  U.S. Army over the course of several years. The contract contains an "option" for the Army to increase its buy, increasing the total number of helos that might be built to 215. In such an event, this week's order could nearly double the size of the Army's Chinook fleet to 464 aircraft and push the total contract value past $4.8 billion.

In a statement, Boeing noted that by making the bulk order of Chinooks, "the Army is benefiting not only from the efficiencies of a multi-year contract but also from the production efficiency gains Boeing and our suppliers have made." It puts the total savings at $800 million versus the likely cost of building the helos in smaller, on-again, off-again production spurts.

Boeing will begin delivering the Chinooks to the Army in 2015.

Boeing describes the Chinook as a tandem-rotor helicopter as "the backbone of combat, logistics, and humanitarian operations for the U.S. Army and 18 other operators around the world." Fifteen active duty Army and National Guard units operate the CH-47F currently, and a 16th is currently being equipped. 

Read/Post Comments (3) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 12, 2013, at 10:14 PM, Demolishican wrote:

    In addition to the likelihood of losing some Chinooks ferrying OWS around the country in Obama's war against the U.S. this summer, we'll need twice as many as we have now to invade the jungles of Africa as he finishes off his second term.

  • Report this Comment On June 12, 2013, at 10:41 PM, volvo22 wrote:

    jobs jobs lets hope they are selling the old copters any trade In ?? Boieng ??

  • Report this Comment On June 12, 2013, at 10:58 PM, TMFDitty wrote:

    Mostly additions. There are two dozen Chinooks being retired, though, so yes -- a few trade-ins.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2486512, ~/Articles/ArticleHandler.aspx, 9/26/2016 10:27:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:01 PM
BA $130.57 Down -1.21 -0.92%
Boeing CAPS Rating: ****