U.S. Navy orders 11 P-8A Poseidon aircraft from Boeing in $1.9 billion contract

SEATTLE, 25 Sept. 2012. Boeing (NYSE:BA) won a $1.9 billion U.S. Navy contract for 11 P-8A Poseidon aircraft, the addition of which will bring the total fleet to 24 and strengthen anti-submarine, anti-surface warfare, and intelligence, surveillance, and reconnaissance (ISR) capabilities.

The Navy plans to purchase 117 P-8As, based on Boeing’s 737-800 commercial airplane, to replace its P-3 fleet. This contract marks the third low-rate initial production award for the production of P-8As. Two contract awards in 2011 totaled 13 aircraft, of which Boeing has delivered three.

"It has been an exciting and productive year for the P-8A program," admits Capt. Aaron Rondeau, P-8A deputy program manager for the Navy. "The fleet operators in Jacksonville are excited to have received their first three aircraft and look forward to the next delivery as they transition from the P-3 to the first P-8 fleet squadron."

"This contract is a stepping stone to full-rate production, and our focus remains on building Poseidon on cost and on schedule," said Chuck Dabundo, Boeing vice president and P-8 program manager.

Boeing assembles the P-8A aircraft in the same facility where it builds all its 737 aircraft. All P-8A-unique modifications are made in sequence during fabrication and assembly. After assembly, aircraft enter Boeing's mission system installation and checkout facility for final modifications.

Boeing's industry team includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems, and GE Aviation.

The Boeing-led team built and is testing six flight-test and two ground-test aircraft under a Navy System Development and Demonstration contract awarded in 2004. The test aircraft have completed more than 600 sorties and 2,500 flight hours to date.