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Thu, Mar 19, 2009

State Department Approves P-8 Sale To India

$2.13 Billion Deal For Maritime Patrol Aircraft

The US State Department recently cleared a $2.13 billion sale of eight Boeing 737-based P-8I aircraft to India, giving a big fiscal boost to the aerospace firm.

The Government of India selected Boeing in early January to provide the long-range maritime reconnaissance and anti-submarine warfare aircraft to the Indian navy, the first international customer signed for the P-8 program. Before the contract could be signed, it had to win the approval of US defense regulators.

Under terms of the contract, Boeing will deliver the first P-8I within 48 months of the contract signing, and the remaining seven by 2015. As part of an "offset arrangement" with India, Boeing must agree to subcontract work on the planes to companies in the country.

Based on Boeing's commercial 737-800 airliner, the P-8I is a multi-mission maritime patrol aircraft (MPA) that can operate over land or water while performing anti-submarine warfare missions; search and rescue; maritime interdiction; and long-range intelligence, surveillance, target acquisition and reconnaissance.

India is the first international customer for the P-8. Boeing is scheduled to deliver the first P-8I within 48 months of the contract signing, and the remaining seven by 2015.

FMI: www.boeing.com/ids

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