Boeing wins $2.1 billion contract for 16 more P-8 spy planes

WASHINGTON Tue Feb 25, 2014 5:26pm EST

WASHINGTON Feb 25 (Reuters) - Boeing Co has been awarded a contract valued at $2.1 billion to build 16 P-8A Poseidon long-range maritime spy planes for the U.S. Navy, the Pentagon announced on Tuesday.

The deal marks the first full-rate production contract for Boeing for the new planes, and follows a decision by Australia last week to buy eight P-8A planes for A$4 billion ($3.6 billion).

The planes, based on Boeing's 737-800 fuselage, will replace the Navy's P-3 spy planes, which have been in service for more than 40 years.

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