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Boeing, Army Sign $4B Chinook Helicopter Contract; Chuck Dabundo Comments

ChinookBoeing (NYSE: BA) and the U.S. Army have signed a multi-year contract potentially worth $4 billion for up to 215 helicopters intended for combat, logistics and humanitarian operations.

The Army currently has 241 CH-47F Chinooks in its fleet and this order intends to bring the branch’s total procurement close to its goal of 464 helicopters, Boeing said Tuesday.

Boeing will provide the Army at least 177 Chinooks under this contract.

Fifteen active duty and National Guard units operate the CH-47F and the Army is equipping a 16th unit with the helicopter.

Chuck Dabundo, Boeing vice president of cargo helicopter programs, said the company has invested $130 million to modernize the Chinook factory.

Dabundo added the company, its partners and suppliers work on the Chinook in 45 states.

Deliveries from the agreement, which is a cost-effective alternative to annually contracting for the aircraft, begin in 2015.

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