Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. Navy official sees more orders for Boeing P-8A in coming months

Published 2019-06-16, 05:56 a/m
Updated 2019-06-16, 06:00 a/m
© Reuters.  U.S. Navy official sees more orders for Boeing P-8A in coming months

By Andrea Shalal

PARIS, June 16 (Reuters) - The U.S. Navy expects additional U.S. and international orders for the Boeing (NYSE:BA) BA.N P-8A Poseidon maritime patrol aircraft in coming months, which should extend production by two years to late 2025, a senior U.S. Navy official told Reuters.

Navy Captain Tony Rossi, programme manager for the P-8 and its predecessor, the P-3, said the Navy was hoping to finalise the order book for the programme soon to be able to "effectively and efficiently close out the production."

He said the programme could see about 21 additional orders from the U.S. Navy on top of 117 aircraft already funded, plus roughly the same number from other countries, although he declined to name potential new buyers.

The P-8, based on Boeing's 737-800 airframe, conducts anti-submarine warfare, anti-surface warfare and shipping interdiction, and also carries electronic support measures, torpedoes, Harpoon anti-ship missiles and other weapons.

It is already operated by the U.S. Navy, Australia and India, and has been ordered by Britain, Norway, New Zealand and South Korea.

Rossi said he was urging potential buyers to place their orders soon.

"The message is clear. The time is now to make sure that production continues to get those orders filled," he said. "I'm upbeat. I think there'll likely be additional U.S. orders and additional FMS (foreign military sales) quantities in the next six to nine months."

Richard Aboulafia, vice president of analysis for the Virginia-based Teal Group, said other potential buyers included Singapore and Canada. The transatlantic NATO alliance was also considering ordering the aircraft, according to sources familiar with the programme.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"The market is somewhat thinner than expected, but they'll get more orders. The production line will probably wind up running into the late 2020s," Aboulafia said.

Boeing builds about 1.5 P-8 aircraft a month, but could slow production to extend the line, which is now slated to end in mid- to late-2023, and allow additional international customers to join the programme, Rossi said.

He said demand for broad-area maritime patrol was rising given sharp increases in Russian submarine activity, and the capabilities of those vessels.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.