State Dept Clears $1.6B Boeing C-17 Sales Deal for Australia

ContractAustralia plans to acquire Boeing (NYSE: BA) C-17 military cargo aircraft and associated parts and services under a $1.6 billion foreign military sale agreement with the U.S. government.

The U.S. State Department has approved the Australian government’s request to procure up to four Boeing Globemaster III planes and various aircraft systems such as infrared countermeasures, missile warning sensors and receivers, the Defense Security Cooperation Agency said Wednesday.

The proposed FMS deal also includes 19 Pratt & Whitney-made engines and 16 Honeywell-built (NYSE: HON) embedded GPS and inertial navigation systems, according to DSCA.

Boeing will be the principal contractor for the sale, which also covers personnel training services, repair and testing equipment and technical manuals.

DSCA says Australia owns six Boeing C-17A aircraft.

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