15 Jul 2020
Posted in Aerospace, Defense & Security
Short-term boost for Boeing with F-15EX order from USAF
Following the recent news that the United States Air Force (USAF) and Boeing signed a $1.2Bn deal for the first eight F-15EX aircraft order;
Mathew George, Ph.D., Aerospace & Defense Analyst at GlobalData, a leading data and analytics company, offers his view:
“For Boeing, this order comes at the right time to possibly ensure revenues continue to come in for the medium term. Boeing reported a 26% decline in revenues last quarter with CEO David Calhoun commenting that COVID-19 had affected every aspect of the business. The USAF, on the other hand, can renew some of its fourth generation fleet with advanced capabilities with minimal time spent in transitioning to a new platform.
“These new F-15EX will replace some of the USAF’s oldest F-15C/D in a quick, smooth quick transition as a majority of the support systems require little to no changes. This allows for costs and time to be saved with retraining, retooling and setting up facilities to handle aircraft had a different platform been selected.”
“The first two aircraft are expected to be delivered in the second quarter of FY21 and the rest in FY23 and the Air Force has determined the use of Strategic Basing Process for the fielding of the remaining lots.
“GlobalData expects that Boeing will work closely with the USAF to ensure that all necessary documentation is completed for further acquisition contracts to be announced in line with USAF procurement timelines and award Boeing with at least 76 aircraft at current costs and ensure the production lines keep humming.”