Yahoo Finance Boeing (BA) Clinches $29M Deal for CH-47F Block II Helicopter
The Boeing Company BA recently clinched a contract for advanced procurement of long lead items for CH-47F Block 2 helicopter. The U.S. Army Contracting Command, Redstone Arsenal, AL awarded the deal.
Valued at $29 million, the contract is expected to get completed by Sep 29, 2023.
Importance of CH-47 Chinook
Boeing’s CH-47 Chinook Block II helicopter boasts cutting-edge technologies that are most suitable for heavy-lift mission requirements. Additionally, Block II improves readiness for the U.S. Army and Special Operations warfighters, limits future sustainment costs and provides commonality across the fleet to ensure that the Chinook fleet will be available to serve for decades to come.
Owing to its unrivaled production, maintenance and sustainment cost efficiencies, the helicopter enjoys a steady demand. Notably, 950 Chinooks is being deployed in 20 countries, thus entailing the solid demand that this helicopter enjoys. In fact, Boeing may continue to witness a steady flow of contracts involving CH-47 Chinook like the latest contract.
Growth Prospects
The tiff between Russia and Ukraine has compelled nations across the globe to increase their defense spending in a bid to fortify their defense structure against any sudden assault. In fact, an increased spending has been witnessed for defense arms and ammunitions procurement. In this context, military helicopter that plays an integral part in any defense landscape is likely to witness a surge in demand.
Per the GlobeNewswire report, the global rotorcraft market is likely to witness a CAGR of 4% over the 2022-2027 period. Boeing is poised to enjoy the perks of the expanding market owing to its established position in the manufacturing of rotorcraft for the military.
Other defense primes that may reap the benefits of the probable increased demand for the rotorcraft are:
Airbus EADSY, one of the world's largest suppliers of advanced military helicopters. Airbus Helicopters’ principal military clients are Ministries of Defence in Europe, Asia, the United States and Latin America.
Some of EADSY’s military helicopters include H125M, H135, H145M, AS565MBe, H160M, H175M, H215M, H225M, etc.
Lockheed Martin LMT, the Sikorsky business unit of which, provides military and rotary-wing aircraft to all five branches of the U.S. armed forces along with military services and commercial operators in 40 nations.
Some of LMT’s products include Armed Black Hawk, CH-53K, MH-60R, Defiant X, Raider X, S-97 Raider, FireHawk,etc.
Textron, TXT whole Bell business supplies advanced military helicopters and provides parts and support services to the U.S. Government and military customers outside the United States.
TXT Bell’s primary U.S. Government programs are for the production and support of the V-22 tiltrotor aircraft and the H-1 helicopters.
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