U.S. Navy Orders More of Boeing's Poseidon Jets: Additional Order Marks Move to Full-Rate Production

The Wall Street Journal
By  Doug Cameron
Feb. 25, 2014 9:21 p.m. ET

The U.S.Navy agreed to buy 16 more Boeing Co. P-8A Poseidon jets as part of a $2.1 billion deal that marks a move to full-rate production for the surveillance and anti-submarine aircraft.

The deal announced by the Pentagon Tuesday increases the Navy's order to 53 jets as it exercised options as part of a broader agreement that would see the service take up to 117 of the aircraft, a heavily-modified version of its best-selling 737-800 passenger plane.

Boeing's development of military versions of its commercial aircraft has proved successful at stimulating sales at a time when orders for its specialized fighters are drying up. In addition to the P-8A, the company won a multibillion-dollar contract to make the new KC-46 aerial refueling tankers—recently renamed the Pegasus—for the U.S. Air Force, based on its 767 twin-aisle jet.

The switch in U.S. military strategy toward the Pacific from central Asia has fueled demand for the Poseidon and other equipment that has offered the Navy with more protection from budget cuts than other branches of the military. The latest P-8 buy comes from the Navy's fiscal 2014 budget.

The move to full-rate output marks a milestone for the P-8 program after four sets of initial production that has seen 13 planes delivered so far to the Navy, though their capabilities have attracted criticism from the Pentagon's chief weapons tester, notably over its ability to provide surveillance over large areas

The defense department's acquisition chief countered a report last month from the tester, and said the P-8 was meant to develop in stages, with its full capabilities emerging in later models.

Boeing has also won orders from Australia and India for the P-8.

Source:   http://online.wsj.com