Boeing may land $1.3 billion US Army Apache attack helicopter upgrade contract

11 Oct 2007

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Washington: Boeing Co may land a contract, potentially worth up to $1.3 billion, if talks with US Army for the upgrade of 100 older version AH-64 Apache attack helicopters is concluded successfully. The cost of the upgrades is estimated at $14 million for each chopper. The Army''s interest in the upgrades has been stated by the service''s aviation chief, Brig Gen Stephen Mundt.

According to Mundt, the Army was initially interested in simply buying new Apache Block 3 helicopters at a cost of about $32 million. However, upgrades of older Apaches have now been necessitated by combat losses and a two-year delay in the expected fielding of the new Textron Inc Armed Reconnaissance Helicopter.

Given the delay, and a resulting gap until the newer Block 3 Apaches are made available, the Army would now upgrade 95 older helicopters to the Block 2 Apache configuration, Mundt said at the annual conference of the Association of the US Army.

Mundt said funding for the measure would likely be included in a long-term budget plan for fiscal years 2010 to 2015.

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