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  • Wednesday, December 25, 2024

AAR, Boeing Awarded $199M in Poseidon Aircraft Maintenance Contract Modifications

An AAR‘ (NYSE: AIR) government services subsidiary and Boeing (NYSE: BA) have received contract modifications worth a combined $199 million to respectively maintain P-8A planes and engines for the U.S. Navy, Australia and other unnamed international clients.

AAR (NYSE: AIR) Government Services and Boeing (NYSE: BA) will deliver depot-level support services through October 2023 for the service branch, Australia and other foreign military sales customers, the Department of Defense said Tuesday.

AAR received $114.5 million to perform work such as in-service repair, technical directive incorporation, airframe modification and engine replacement of the multimission aircraft in Indiana.

Meanwhile, Boeing secured $84.5 million to maintain and repair CFM56-7B27A/3 and CFM56-7B27AE engines in Georgia and Washington.

The two companies can pursue individual orders through exercised options under the indefinite-delivery/indefinite-quantity contracts the branch previously awarded to them.

Naval Air Systems Command is the contracting activity. Funds will be obligated as each order is issued.

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