Boeing gets almost $10B in orders, names global services HQ site

Boeing gets almost $10B in orders, names global services HQ site

Contracts cover as many as 79 P-8s, 737s; Plano, Texas to be BGS hub.

Industry/Regulations Military/UAV/UAS

U.S. Navy P-8A is based on Boeing’s 737 Next-Generation commercial airplane.

Cleveland, Ohio – Boeing officials recently announced a $2.2 billion contract award for at least 17 P-8A Poseidon aircraft for the U.S. Navy, the Royal Australian Air Force, and the United Kingdom Royal Air Force.

The agreement also includes options for 32 additional aircraft, as well as money for long-lead parts for future orders. After exercising all options, the total contract value will be $6.8 billion. Officials said this comprehensive award reflects a commitment by Boeing and the Navy to achieve pricing and production stability, cited as “two keys of successful program performance.”

The U.S. Navy will receive 11 aircraft, while Australia will receive four more. The U.K.’s first two P-8A jets are part of the agreement, with first delivery set for 2019. Boeing so far has delivered 53 Poseidons to the U.S. Navy and two to the Royal Australian Air Force.

Based on Boeing’s Next-Generation 737-800 commercial airplane, the P-8A offers advanced anti-submarine; anti-surface warfare; and intelligence, surveillance, and reconnaissance capabilities.

More sales to Iran
Boeing officials also confirmed the signing of a memorandum of agreement (MOA) with Iran Aseman Airlines, expressing the airline’s intent to purchase 30 Boeing 737 MAX airplanes with a list price value of $3 billion. The U.S. government-approved agreement also provides the airline with purchase rights for 30 additional 737 MAXs. Deliveries would be scheduled to start in 2022. This is separate from the agreement announced late last year for sale of 80 aircraft to Iran Air.

The company’s press release on the new MOA emphasized that Boeing will look to the Office of Foreign Assets Control for approval, will follow the lead of the U.S. government in working with Iran’s airlines, and that “any and all contracts with Iran’s airlines are contingent upon U.S. government approval.”

Global Services established in Plano, Texas
Boeing’s new Global Services business unit headquarters is scheduled to be operational in July in Plano, Texas. Located in the Legacy West mixed-use development in West Plano, Boeing Global Services will serve as a central hub for approximately 20,000 employees located around the globe.

Global Services President and CEO Stan Deal, several leadership team members, and some support staff will be located at the site.

Boeing’s reasons for selecting the greater Dallas area include its central location within the company’s “U.S. footprint,” proximity to major operations for commercial customers and defense partners, and the transportation hub that will allow the company to reach customers quickly and efficiently.

In November 2016, Boeing announced the standup of Global Services, which will be formed by integrating the services capabilities of the defense, space, and commercial sectors into a single, customer-focused business. Operating as a third business unit of Boeing, Global Services is intended to provide agile, cost-competitive services to commercial and defense customers worldwide.