It's a great time to be a shareholder in United Technologies
UTC inked a contract to provide Turkey with 109 T-70 helicopters (a variant of the venerable Black Hawk), and gave Turkey the option of purchasing 12 more later on. Initially, the contract will be valued at $3.5 billion, but over time it could prove even more valuable. According to Turkey's defense minister, the country aims to eventually increase its order to 600 helos -- suggesting a potential $19 billion in additional revenues for UTC.
Knocks and pings
Possible knock-on effects of this deal are double: First, Turkey's plan suggests it may intend to replace and retire other models from its hodgepodge helo fleet, which includes American Hueys, French Cougars, and Russian Mi-17s. So what's good news for UTC could be bad news for rival helo makers, such as Huey manufacturer Textron
Meanwhile, closer to home, the fact that Turkey chose UTC over rival AgustaWestland could influence the competition to build President Obama's new helicopter. AgustaWestland is allied with Boeing
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