Boeing Lands $2.43B AWACS Deal While Addressing 25 Jet Wiring Flaws
Boeing secured two U.S. Air Force contract modifications totaling $2.43 billion for its E-7A Wedgetail AWACS program, expanding the deal to $4.9 billion with work scheduled through August 2032 across Seattle, Oklahoma City, Huntsville and Heath. The company is also repairing up to 25 undelivered 737 MAX jets for wiring flaws, potentially delaying near-term deliveries.
1. U.S. Air Force AWACS Contract Modifications
Boeing received two modifications worth $2.43 billion for the E-7A Wedgetail airborne early warning and control aircraft, boosting the total program value to $4.9 billion. Primary production will occur in Seattle, with additional efforts in Oklahoma City, Huntsville and Heath and a completion target of August 2032.
2. 737 MAX Wiring Flaw Repairs
The company is inspecting and repairing up to 25 undelivered 737 MAX aircraft due to identified wiring issues. This remediation process could push back scheduled deliveries and may affect first-quarter shipment volumes.
3. Delivery Performance and Order Momentum
In February Boeing delivered 51 commercial airplanes and achieved net orders of 118 year-to-date valued at $10.9 billion, a substantial increase from $2.1 billion in the same period last year, underscoring robust demand despite repair challenges.