The Boeing Co. BA won a $321.8 million contract for the completion of the development work of the base line Apache attack helicopter.
Per this cost-plus-incentive-fee undefinitized contract, Boeing will have to finish development of the base line Apache attack helicopter as well as the integration of modifications. The work is slated to be over by Mar 31, 2018 and will be carried out in Mesa, AZ.
Boeing’s Apache, with a cruising speed of 279 kilometers (over 150 knots) per hour, is a twin-engine, four-bladed, two-pilot helicopter that scored high ratings for its engine competency and weapons load. Apache is also noted for its target acquisition potential.
Boeing’s military aircraft and helicopter deliveries in 2014 increased to 184 from 171 in 2013 and 154 in 2012. The numbers were dominated by deliveries of 54 new-build CH-47 Chinooks and 45 new-build AH-64 Apaches, both of which were up significantly. Though Boeing’s deliveries in the defense and space business declined year over year in the first quarter of 2015, AH-64 Apache deliveries rose to 16 from 10 a year ago.
The proposed fiscal 2016 defense budget also calls for army helicopter modernization, worth $4.5 billion.
This aerospace major is striving to keep pace with the slew of helicopter demand both in the domestic and international markets. Last year, India approved proposals to acquire 22 Boeing AH-64E Apache attack helicopters and 15 CH-47F Chinook heavy lift helicopters for the Indian Air Force. The transaction is valued at $2.5 billion and is part of the country’s plans to beef up its military strength.
Boeing currently holds a Zacks Rank #3 (Hold). Other better-ranked players in the aerospace/defense sector are Huntington Ingalls Industries, Inc. HII with a Zacks Rank #1 (Strong Buy), and General Dynamics Corp. GD and Air Industries Group AIRI with a Zacks Rank #2 (Buy).
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