Boeing gets $4 bn US Army helicopter deal

By Agence France-Presse on Wednesday, June 12th, 2013

US aerospace giant Boeing announced Tuesday it has received a multi-year $4 billion order from the united states Army for 177 more CH-47F Chinook helicopters.

The five-year deal includes an option for the military to shop for 38 additional Chinooks, a multi-mission, twin-engine transport helicopter, Boeing said in a press release.

“This order would eventually bring the Army’s CH-47F total procurement as regards to its target of 464 aircraft, including 24 to interchange peacetime attrition aircraft,” the Chicago-based company said, noting the military currently has 241 of the F-model aircraft.

Deliveries are to start out in 2015.

The order comes amid sharp, broad-based government “sequester” spending cutbacks which are especially hard-hitting for the Defense Department.

“This contract will enable Boeing and our partners and suppliers in 45 states to bring stability to the workforce and to take a position in production tooling, processes and other capital improvements,” Boeing said.

The contract, that is more cost-effective than annually contracting for the aircraft, will save america Army greater than $800 million, it said.

“This multi-year contract provides unprecedented savings for the united states Army and American taxpayers,” Colonel Robert Barrie, US Army project manager for Cargo Helicopters, said within the statement.

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