Boeing has received a $1.6 billion contract from the U.S. Navy for initial low-rate production of the P-8A Poseidon aircraft.
The Navy plans to buy 117 of the aircraft, which is a derivative of Boeing's 737-800 single-aisle commercial aircraft.
The plane is an anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft and will replace the Navy's P-3 fleet.
Initial operational capacity is planned for 2013.
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Spirit AeroSystems produces the plane's fuselage, pylons and thrust reverser.
"In our view, the P-8 has been an extremely successful program," said Spirit spokeswoman Debbie Gann. "It's one that Spirit's been able to bring value to because we build these military products right down a commercial (production) line.... We think it's been a real success story for us."
The production contract follows a 2004 contract with Boeing to build and test six flight-test and two ground-test aircraft. The first three flight-test planes are completing testing at Naval Air Station Patuxent River, Md.
A static test plane recently completed its test program and a fatigue test plane will undergo testing later this year.
"This first production contract represents a significant commitment by the U.S. Navy to recapitalize its force of long-range maritime patrol and reconnaissance aircraft," Capt. Leon Bacon, the Navy's P-8A deputy program manager, said in a statement. "Ensuring that this capability arrives on schedule and within budget remains our primary objective."
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