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Boeing Wins $1.7B for P-8 Aircraft, Navy Aircrew Training

The U.S. Navy has awarded Boeing (NYSE: BA) a $1.7 billion low-rate initial production award for seven additional P-8A Poseidon maritime surveillance aircraft. This award is the follow-on to the initial contract awarded to the company in January to provide six Poseidon aircrafts.

According to the Navy, it plans to purchase 117 Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace their P-3 fleet.

Starting in 2012, Boeing will provide aircrew and maintenance training for the Navy. Boeing will also provide logistics support, spares, support equipment and tools. The training system will include a full-motion, full-visual operational flight trainer that simulates the flight crew stations and a weapons tactics trainer for the mission crew stations.

“This contract is the result of the Boeing and Navy team’s hard work and commitment, and moves us a step closer to P-8A full-rate production, ” said Chuck Dabundo, Boeing vice president and P-8 program manager. “We’ve assembled and flown the first LRIP plane and continue to focus on building P-8A aircraft on cost and on schedule.”

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