Boeing Secures $3.4 Billion Deal for 17 Cutting-Edge P-8A Poseidon Jets

The U.S. Navy has bestowed Boeing [NYSE: BA] a contract worth $3.4 billion to initiate the production of 14 P-8A Poseidon aircraft for the Royal Canadian Air Force and an additional three P-8s for the German Navy.

“We are delighted to welcome Canada to the roster of global P-8 collaborators as well as to enhance Germany’s maritime reconnaissance fleet,” expressed Philip June, vice president and program director, P-8A initiative. “The Poseidon is a tried-and-true aircraft, boasting over 600,000 flight hours, that will effectively serve Canada and Germany in today’s demanding security landscape for numerous years ahead.”

In November 2023, Canada revealed its determination to procure the P-8A Poseidon to substitute its existing fleet of CP-140 Auroras. The initial P-8A for Canada is projected to be delivered in 2026.

With the P-8 acquisition, Boeing’s economic pledges to Canada could yield annual advantages of over 3,000 jobs for Canadian industries and value-chain collaborators, generating at least $358 million to Canada’s gross domestic output over a decade.

Canada’s Team Poseidon comprises CAE, GE Aviation Canada, IMP Aerospace & Defence, KF Aerospace, Honeywell Aerospace Canada, Raytheon Canada, and StandardAero. This coalition builds upon 81 Canadian suppliers for the P-8 platform and over 550 suppliers throughout all provinces, contributing to Boeing’s yearly ~CAD $4 billion economic benefit to Canada, facilitating more than 14,000 Canadian jobs.

“Our international clients demand reliable advanced capabilities to safeguard their nations — the P-8 delivers that protection,” stated Vince Logsdon, vice president, International Business Development for Boeing Defense, Space & Security and Global Services. “In collaboration with our partners, we anticipate delivering this unrivaled capability along with substantial industrial advantages for Canada’s and Germany’s aerospace and defense sectors.”

Following the initial acquisition of five P-8 aircraft in June 2021, Germany has ordered three additional aircraft, bringing the total number of P-8s for the German Navy to eight. The first aircraft is set to be delivered in 2025, replacing the nation’s fleet of P-3 Orions.

In Germany, Boeing has teamed up with ESG Elektroniksystem-und Logistik-GmbH and Lufthansa Technik to provide systems integration, training, support, and sustainment tasks that will ensure optimal operational readiness to accomplish the German Navy’s missions.

Last year, Boeing and CAE established collaboration agreements to enhance multi-mission platform cooperation in Canada, Germany, and Norway. These agreements leverage the complementary strengths of each firm to deliver superior management, technical expertise, and cost-effective training solutions for the P-8A Poseidon program.

Currently, there are 200 P-8s active or under contract across nine nations, including the United States, Australia, India, the United Kingdom, Norway, New Zealand, the Republic of Korea, Germany, and Canada.