Boeing (BA, $360.68) secures U.S. Navy contract worth $2.5 billion

According to the latest media release by the U.S Department of Defense, Boeing has been awarded with an almost $2.5 billion contract for the production of 19 P-8A Poseidon maritime patrol aircraft for the U.S Navy, Norway and the U.K.

With 10 aircrafts, at almost $1.26 billion, the U.S. Navy purchase makes up 51% of the total contract value, while Norway’s five aircrafts at almost $695 million makes up 28%. The U.K.’s four aircrafts at almost $507 million makes up 21% of the total contract value.

Developed dominantly for the U.S Navy, more than 80% of the work will be performed in Seattle and Washington and is expected to complete in March 2022. The U.K’s initial operating capability is expected to be achieved in 2020, while Norway’s aircraft are scheduled to be delivered between 2022 and 2023.

On January 25, Boeing delivered the first two KC-46 aerial re-fuelling tankers to the U.S. Air Force at McConnell Air Force Base in Kansas

The program is expected to be a landmark move which is two years behind schedule and more than $3 billion over budget.

Enabled to carry torpedoes, depth charges, Harpoon anti-ship missiles and other weapons, P-8 Poseidon is a modified version of the Boeing 737-800ERX.