Boeing lands $2.56B Air Force contract

Boeing has won a $2.56 billion U.S. Air Force contract for two rapid prototype E-7A airborne early warning and control (AEW&C) Wedgetail aircraft, the Arlington-based Fortune 500 aerospace and defense company announced Friday.

The contract modification to a previously awarded undefinitized contract action includes life-cycle development, training and support for the Air Force’s E-7A fleet. The E-7A Wedgetail provides targeted tracking and battle management command-and-control capabilities to joint forces for a “first to detect, first to engage” advantage, according to a news release.

“Our customers have an urgent need for integrated battle-space awareness and battle management,” Dan Gillian, vice president and general manager of Boeing Defense, Space & Security’s Mobility, Surveillance & Bombers division, said in a statement. “The E-7A is the airspace linchpin to continuously scan the skies, command and control the battle space and integrate all-domain data, providing a decisive advantage against threats.”

Based on the Boeing 737-700 Next Generation airframe, the E-7 AEW&C aircraft is used by the Royal Australian Air Force, Republic of Korea Air Force (designated the E-737 Peace Eye) and Turkish Air Force (designated the E-7T Peace Eagle).

In addition to building the rapid prototype aircraft for the U.S., Boeing is producing three E-7As for the United Kingdom’s Royal Air Force. The heads of the Royal Air Force, Royal Australian Air Force and the U.S. Air Force signed a joint vision statement in July 2023 outlining their agreement to collaborate on the Wedgetail’s development.

Also, in November 2023, NATO ordered six E-7A Wedgetail aircraft to replace its E-3A Sentry Airborne Warning and Control System aircraft, which it has operated a fleet of since the 1980s, for an undisclosed amount.

“Global operators are proving that the E-7 AEW&C is a critical node for air superiority in the modern battle space,” Stu Voboril, Boeing vice president and E-7 program manager, said in a statement. “In our partnership with the U.S. Air Force, we’re focused on stable, predictable execution to deliver crucial mission-ready capabilities today. This will put us on the path for the long-term growth of the aircraft and mission.”

Work on the U.S. contract will be performed in Tukwila, Washington, and is expected to be completed by Aug. 28, 2029, according to the U.S. Defense Department.

Boeing’s assembly process for its 737 Max 9 aircraft has come under scrutiny since a 4-foot wall panel blew out of a Boeing plane cabin during an Alaska Airlines flight on Jan. 5.

The Federal Aviation Administration conducted a six-week audit of Boeing and supplier Spirit AeroSystems, which Boeing announced plans to acquire for $4.7 billion on July 1. Boeing submitted an action plan to correct issues found in the audit to the FAA, which will have continued oversight of the company.

Last week, the National Transportation Safety Board held two days of hearings investing the door plug blowout. Testimony from Boeing workers and federal inspectors revealed systemic manufacturing problems.

Boeing’s new president and CEO, Robert “Kelly” Ortberg, started his tenure Thursday.