After months of disputes and negotiations, the US Air Force and Boeing have finally reached an agreement regarding the planned supply of E-7 Wedgetail airborne early warning and control (AEW&C) aircraft.
US Air Force Secretary Frank Kendall told reporters at an air show in England that the service finally “got a reasonable price point” for the jets after bringing in a brokering expert.
“We have reached [an] agreement with them,” he said. “What we did was we brought back a former colleague of mine … to negotiate with Boeing and to drive to closure on the program: Mr. Shay Assad.”
Kendall said the two entities have yet to formally discuss the terms of the contract but expect everything to be finalized next month.
The E-7 is a combat-proven, twin-engine aircraft set to replace the US Air Force’s aging E-3 Sentry AEW&C fleet.
Price Negotiation
The announcement means that the US Air Force and Boeing have finally resolved months of tedious negotiations that stem from the service’s special requirements for the E-7.
The air force reportedly wanted US-specific features, such as open mission systems architecture and an enhanced global positioning system.
It also requested a modified design for the Wedgetail to meet US satellite communications requirements.
“They (negotiations) have been hard,” Kendall told Defense News. “There are some reasons for the price to go up, but the degree to which it was going to go up originally was unacceptable.”
The US Air Force plans to procure up to 26 E-7s by 2032.
Legal Battle
Reaching an agreement with the US despite its ongoing legal battles is a major milestone for Boeing.
Earlier this month, the company agreed to plead guilty to charges of conspiracy to defraud the US Federal Aviation Administration in relation to fatal crashes in 2018 and 2019 involving its 737 Max.
The E-7 is based on the 737 Next Generation aircraft, the predecessor of the troubled 737 MAX.
Military experts told Reuters that the guilty plea could affect Boeing’s ability to secure more contracts from American agencies, such as the Department of Defense.
But Kendall quickly debunked the claim, saying he does not believe that the legal battles will lead to “significant disruption of our contracting.”