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The Boeing Company BA was recently awarded a modification contract to provide support, engineering and procurement services for the P8-A Poseidon aircraft. The contract was awarded by Naval Air Systems Command, Patuxent River, MD.
Agreement details
Worth $ 13.5 million, the contract focuses on supporting the Increment Three Block One retrofit coupled with the purchase, manufacture and assembly of 25 additional retrofit kits. This will provide support in Engineering Change Five for existing Poseidon P8-A aircraft.
The work will be carried out in Seattle, WA, and is expected to be completed in December 2023.
Importance of the P8-A Poseidon aircraft
The P-8A Poseidon is a multi-mission maritime patrol aircraft, which can perform anti-submarine and anti-surface warfare, intelligence, surveillance and reconnaissance, and search and rescue missions. Seven countries around the world have chosen the P-8A as their future maritime patrol aircraft, including South Korea and New Zealand.
In September 2021, Boeing won a $ 757 million modification contract for the production and delivery of 12P-8A aircraft to the German Navy. Additionally, in April 2021, Boeing won a $ 1.6 billion contract for the production and delivery of 11 P-8A jets to the US Navy and the Australian government.
Such developments will help the United States continue to dominate the global fighter space, with the P8-A Poseidon aircraft being one of the main catalysts.
Look ahead
Growing geopolitical tensions around the world have led countries to strengthen their defense systems. This has led to a huge demand for defense products. Therefore, fighter jets have also seen a sharp increase in demand in recent years. The United States, which is the world’s largest exporter of military armaments, is thus focusing on strengthening its military resources.
This is clear from the allocation of a $ 52.4 billion investment plan, in the United States’ FY2022 defense budget, for fighter jets. The plan includes an investment of around $ 4.8 billion for Boeing fighter jets. So, we can expect a solid flow of Pentagon contracts, like the latter. This, in turn, will boost Boeing’s leading performance in the days to come.
Growth opportunities
According to projections by the company Mordor Intelligence, the global combat aircraft market is expected to experience a CAGR of over 3% over the period 2021-2030, with North America expected to experience the highest growth. Such projections will benefit not only Boeing but also other major US aerospace companies, namely Northrop Grumman CNO, Lockheed Martin LMT and Textron (SMS), which all enjoy a dominant position in the space of maritime patrols in particular.
For example, Lockheed’s maritime patrol aircraft, the P-3 Orion, performs aerial, surface and underground patrols, as well as reconnaissance tasks over long periods of time and away from support facilities.
Textron’s King Air 260 jets offer the right balance of durability and economy of operation for maritime patrol missions.
Northrop Grumman’s MQ-4C Triton unmanned aircraft system provides real-time intelligence, surveillance and reconnaissance over vast ocean and coastal areas.
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The Boeing Company (BA): Free Inventory Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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