U.K. Buys Boeing Patrol Planes, Attack Helicopters
July 11 2016 - 5:40AM
Dow Jones News
FARNBOROUGH, England—The British Defense Ministry will buy nine
military surveillance jets and 50 attack helicopters from Boeing in
deals valued at more than $6 billion.
Britain pledged to buy the nine P-8A jets for maritime patrols
and hunting submarines in a major defense review last year. The
planes fill a gap created after the grounding of an older jet fleet
in 2010 and the cancellation of a program to replace them with
British-made aircraft.
The British government said on Monday that the first of the
planes would arrive between 2019 and 2020. The cost of introducing
the plane over 10 years, including training and infrastructure,
will be about £ 3 billion ($3.9 billion), the Defense Ministry
said.
The U.K. has had to call on sea-monitoring planes from its
allies in recent years to help patrol its coast and hunt submarines
after sighting suspicious foreign vessels.
Boeing has bet heavily on selling modified jetliners for
military applications amid dwindling demand for its combat jets.
The U.K. becomes the third overseas customer alongside India and
Australia for the P-8A, a heavily modified version of Boeing's
best-selling 737 passenger jet.
Boeing has committed to involve U.K. companies in its programs
and work with the British government to build a P-8A operational
support and training base at RAF Lossiemouth.
British Prime Minister David Cameron said the deal indicated the
U.K. remained a place to invest even after Britons voted last month
to leave the European Union.
"Whatever uncertainties our country faces, I want the message to
go out loud and clear: the U.K. will continue to lead the world in
both civil and defense aerospace," said Mr. Cameron, who is
stepping down as Prime Minister.
Boeing has estimated an export market of more than 100 of the
planes over the next decade. The aircraft include a host of sensors
and the ability to deploy weapons such as torpedoes.
The U.S. State Department earlier this year cleared the
government-to-government sale. Other suppliers involved include
ViaSat Inc., Rockwell Collins Inc. Spirit AeroSystems Holdings Inc.
and Raytheon Co.
Separately, the British government said it would buy 50 AH-64E
Apache attack helicopters from Boeing. The deal is valued at $2.3
billion, the Defense Ministry said.
British Chief of the General Staff General Nick Carter said "the
new Apache fleet will provide the British Army with a highly potent
fighting element of its Future Force 2025.
The deal, via the U.S. foreign military-sales program, has been
controversial for potentially not providing enough work to British
industry. U.K. Defense Secretary Michael Fallon said "in the longer
term, I want these new Apaches to be maintained in the U.K., and
for U.K. companies to do most of the work." Leonardo-Finmeccanica
SpA, the Italian aerospace company with a large helicopter
operation in the U.K., should be involved, he said.
Write to Robert Wall at robert.wall@wsj.com
(END) Dow Jones Newswires
July 11, 2016 05:25 ET (09:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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