Boeing Triumphs with $437 Million Apache Helicopter Contract in Saudi Arabia
Today, the U.S. Army granted Boeing a contract valued at approximately $437 million for the full-rate production of AH-64E Apache helicopters destined for Saudi Arabia.
“The Boeing Company, based in Mesa, Arizona, has received a $436,691,186 modification to the contract for full-rate production of Apache AH-64E aircraft,” stated a release from the U.S. Department of Defense.
While today’s contract does not specifically reference the Gulf nation, it modifies a prior $3.27 billion agreement awarded to the company in March 2017. This foreign military sales contract for Saudi Arabia encompassed “multi-year lots 7-11 of Apache attack helicopters, full-rate production of both remanufactured and new aircraft, Longbow crew trainers, specialized ground support equipment, initial spares, integrated logistics support, and engineering technical services.”
The completion date for the current agreement is projected to be before February 28, 2025.
Boeing’s AH-64 Apache
Boeing’s AH-64 Apache has established itself as the most advanced, multi-role combat helicopter globally, utilized by the U.S. Army and an increasing number of international defense forces. The AH-64E represents the latest iteration of this gunship, featuring enhanced sensors, avionics, and superior night operation capabilities.
Furthermore, it includes an infrared suppressing exhaust system along with chaff and flare dispensers, collectively diminishing the likelihood of being targeted by enemy air defense systems. Countries such as India, the United Kingdom, Netherlands, Morocco, Israel, and Egypt, in addition to the United States, have incorporated Apache helicopters into their military fleets.
Boeing has successfully delivered over 2,400 Apache helicopters to customers around the world. Recently, escalating geopolitical tensions have prompted both developed and developing countries to significantly elevate their defense budgets. Notably, the fiscal 2022 discretionary budget proposal allocates $753 billion for U.S. defense programs, indicating an annual increase of 1.7%. If approved, new orders from the Pentagon, such as this latest agreement, will enhance Boeing’s growth potential.
