Boeing, US Navy in $5.3-bn fighter jets deal

The world's largest aerospace company Boeing received a lift Tuesday when the US Navy awarded the aviation giant a new 4-year contract for 124 Super Hornet and Growler aircraft valued at $5.3 billion.

The order follows just a day after the US aircraft maker entered into a deal with Chinese flag carrier Air China for the supply of 4 long-haul Boeing 777-ER commercial jets with a total value of approximately $1.1 billion.

Under the terms of the new multi-year agreement, Boeing will deliver 66 F/A-18E/F Super Hornets and 58 EA-18G Growlers to the US Navy from 2012 through 2015, a statement said.

"Procurement of these 124 aircraft through a multi-year contract takes advantage of the full efficiencies of Boeing's production and supplier operations, which will generate more than $600 million in cost savings for US taxpayers," said Kory Mathews, Boeing's vice president for the F/A-18 and EA-18 programmes.

"Boeing and its Hornet industry team suppliers have delivered every Super Hornet and Growler on schedule to the war fighter and on budget for the taxpayer from the first Super Hornet delivery,'' Mathews further said.

This is the third multi-year contract between Boeing and the Navy for Super Hornets. The first two contracts generated more than $1.7 billion in savings for the nation.