Boeing expects to sign new multi-year production contracts with the US Army and US Marine Corps for the CH-47 Chinook and the V-22 Osprey during June, according to a senior company official. The deals have both been pushed back as a result of the US Congress's delaying the passage of a budget for fiscal year 2013.
"We have the approval for multi-year II" for the CH-47, says Mark Ballew, Boeing's vertical lift business development director. "That should be signed [on] 10 June."
The second such Chinook multi-year deal, the package includes 155 aircraft and options for 60 more, Ballew says. In June, six of those options will be exercised to purchase aircraft for Turkey, while another eight are earmarked for the United Arab Emirates. There are also some US aircraft on option, he notes.
There are going to be a total of 464 F-model Chinooks built for the US Army by the time the second contract runs its course by December 2019. The multi-year procurement arrangement should yield the US government $800 million in savings, or roughly 19.1%, compared with proceeding with annual purchases.
Meanwhile, Boeing expects to receive a contract for eight new MH-47G special operations Chinooks "later this summer", Ballew says.
Additionally, Canada will take delivery of its first of 15 aircraft in June 2013, Ballew says. The Canadian aircraft have an improved electrical system and supplementary fuel tanks for extended range. Qatar is exploring the possibility of purchasing eight aircraft in the Canadian configuration, Boeing says.
In addition to the Chinook multi-year deal, a similar contract is expected to be signed for the Bell Boeing V-22 on 13 June. The award would run for five years and cover 99 aircraft, Ballew says.
Source: Flight International
