The Navy has awarded Boeing [BA] a $2 billion contract for 16 P-8A Poseidons, marking the beginning of full-rate production of the aircraft for anti-surface and-submarine warfare and for maritime surveillance.
Naval Air Systems Command (NAVAIR) issued the contract on Tuesday that will bring the total number of P-8As on order to 53. Thirty-seven were already under low-rate production contracts with 13 of them delivered.
The Navy plans to buy a total of 117 of the aircraft based on Boeing’s commercial 737 airframe.
The contract comes just days after the Australian government signaled its intent to buy eight P-8As in the years ahead and become the second international buyer of the aircraft behind India, which is also purchasing eight.