Boeing Secures E-7 Wedgetail Deal with U.S. Air Force in Post-Plea Milestone

The United States Air Force has announced a significant milestone in its partnership with Boeing, revealing that they have reached an agreement for the supply of E-7 Wedgetail airborne warning and control aircraft. This development marks Boeing's first major contract since pleading guilty earlier this month to a criminal fraud conspiracy charge, signaling a critical step forward for the company in its efforts to regain trust and strengthen its position in the defense industry.

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The deal, which covers the rapid production of prototypes as the Air Force phases out its aging E-3 Sentry or AWACS airborne warning and control aircraft, follows reports of disagreements over the price for the 737-based Wedgetail planes. Despite these challenges, the Air Force has expressed confidence in the agreement, with Secretary of the Air Force Frank Kendall stating, "We have reached agreement with (Boeing)... We have got a reasonable price point that we can afford."

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The Air Force's decision to move forward with Boeing on the E-7 program comes at a crucial time for the company, as it continues to grapple with the fallout from its guilty plea. The plea deal, which resolved a U.S. Justice Department investigation into 737 MAX fatal crashes over five years ago, has raised concerns about Boeing's ability to secure contracts from agencies such as the Defense Department and NASA. However, Air Force officials have downplayed these concerns, emphasizing that the company's internal crisis has not affected its ability to negotiate with Boeing. Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics Andrew Hunter echoed this sentiment, stating, "The short answer is it has not; we are continuing to do business with Boeing." He added that the Air Force would be working closely with Boeing to understand the implications of the plea deal, but did not anticipate significant disruption to their contracting relationship.

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The E-7 Wedgetail, a militarized version of Boeing's Next-Generation 737, is designed to provide the Air Force with enhanced airborne early warning and control capabilities. The aircraft's advanced radar system and communication technologies are expected to significantly improve the Air Force's ability to detect and track airborne threats, as well as coordinate and control its air assets. The Air Force's decision to move forward with Boeing on the E-7 program is a testament to the company's continued commitment to delivering cutting-edge technology and capabilities to the U.S. military. As Boeing works to rebuild its reputation and regain the trust of its customers and stakeholders, this agreement represents a significant step forward in the company's efforts to demonstrate its ability to deliver on its promises and meet the needs of the U.S. Air Force. As Boeing continues to navigate the challenges of its recent guilty plea, the company remains focused on its mission to provide innovative solutions and support the national security objectives of the United States. With the E-7 Wedgetail program now moving forward, Boeing is poised to demonstrate its resilience and commitment to excellence in the defense industry.

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