Boeing Wins Second Multibillion-Dollar Chinook Order

Less than a week after winning a massive $4.8 billion order from the Department of Defense to build 177 CH-47F Chinook heavy lift helicopters for the Army, Boeing (NYSE: BA  ) has won another one.

In a news release last night, DoD announced that it has awarded Boeing a firm-fixed-price, multiyear contract worth up to $3.4 billion for the production of remanufactured and new-build Chinooks. To be clear, this new contract is not the anticipated "option" to buy an additional 38 helos discussed in last week's contract. Rather, this is an entirely new order placed "in support of foreign military sales for Turkey and United Arab Emirates."

What's more, this one could be even bigger as the "optioned" version of the contract let out by the U.S. Army last week. According to DoD, the Turkey/UAE contract has options of its own attached, which, if exercised, could increase the total contract value to just under $5 billion, versus a potential value of roughly $4.8 billion on last week's U.S. Army contract.

Boeing is expected to deliver the initial (unspecified) number of contracted Turkey/UAE helicopters by Dec. 31, 2020. If options are exercised, additional helos would probably be delivered farther out.


Read/Post Comments (1) | 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 18, 2013, at 7:42 PM, UnknownInfidel69 wrote:

    So, are the UAE and Turkey going to pay us for those helos or are those part of the arab welfare package the United States has become? If we are just giving these things away I want all my tax money refunded.

Add your comment.

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: 2496441, ~/Articles/ArticleHandler.aspx, 12/19/2014 12:42:10 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...


Advertisement