Boeing to Upgrade US Navy F/A-18 Super Hornet for $172 million
The Boeing Company BA recently won a $172.2-million contract, which entails the jet-maker to bring in modifications to extend the operational service life from 6,000 flight hours to 10,000 flight hours of up to 23 F/A-18E/F aircraft.
Work related to the deal will be executed in San Antonio, TX; El Segundo, CA; and St. Louis, MI. It is scheduled to get completed in May 2022. The contract was awarded by the Naval Air Systems Command, Patuxent River, MD.
Rising Importance of Boeing’s F/A-18E/F Super Hornet
Recently, Boeing’s F/A-18E/F Super Hornet combat aircraft has emerged to be a major choice of weapon for militaries across the world. In fact, the Royal Australian Air Force and the Kuwait Air Force, apart from the U.S. Navy, operate these fighter aircraft in large numbers.
Furthermore, nations like Canada, Finland, Switzerland and Spain currently have Boeing’s Super Hornet within their arsenal. Evidently, once the new modifications are implemented, the demand for the upgraded version of the same is expected to rise.
What Favors Boeing?
Boeing, being one of the major players in the defense business, stands out among peers owing to its broadly diversified programs, strong order bookings and solid backlog. This allows the company’s defense segment to generate a solid top-line performance. Evidently, Boeing Defense, Space & Security (BDS) segment witnessed a 2% year-over- year increase in third-quarter 2019 revenues to $7.04 billion.
Moreover, the U.S. government approved the fiscal 2020 defense budget earlier this year, under which the Department of Defense would receive $718 billion, reflecting a 4.9% increase from the prior-year budget. The budget includes a spending plan of $57.7 billion on aircraft, reflecting a massive surge of 166% from the approved fiscal 2019 defense spending on aircraft. This should usher in more contracts for Boeing’s BDS segment, going ahead.