The U.S. Navy has awarded Boeing a $1.5 billion production contract for the next 18 P-8A Poseidon maritime patrol aircraft, buoying the company’s defense business.
- The P-8 Poseidon is a military derivative of the Boeing 737 Next-Generation airplane, which is built in Renton, Wash. Dozens of the Boeing-built planes patrol the globe, performing missions ranging from sub-hunting and surveillance to search and rescue.
- Eight of the newly ordered aircraft will go to the U.S. Navy, six will go to South Korea’s navy, and four will go to the Royal New Zealand Air Force. Deliveries are scheduled to begin in the 2022-2023 time frame.
- The contract comes as good news for Boeing, which has been dealing with its 737 MAX crisis as well as the effects of the coronavirus outbreak. P-8 Poseidon production is currently suspended as part of a 14-day virus-related shutdown that Boeing ordered last week. Boeing’s stock slumped 6% during today’s trading session, even though the S&P 500 was up more than 3% for the day.