The Boeing Company
) is all set to receive a $1.6 billion (or 1.8 trillion won)
order from South Korea. The sizeable order comes in the wake of
heightened tensions with North Korea, as per media reports.
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The Korea Defence Acquisition Program Administration (DAPA)
revealed that South Korea plans to buy a fleet of Boeing's 36
AH-64E Apache Guardian choppers over a three-year period starting
2016. The contract also enables Boeing to provide training and
logistical support. The decision comes after tension between
North and South Korea escalated following North Korea's third
nuclear test in February.
Boeing's Apache, with a cruising speed of 261 kilometers (162.2
miles) per hour, is a twin-engine, four-bladed, two-pilot
helicopter that scored high ratings for its engine competency and
weapons load. Apache is also noted for its target acquisition
potential. For the contract, this 17.7-meter-long chopper had to
compete with the AH-1Z Viper manufactured by Bell Helicopter, a
), and the Turkish Aerospace Industry's T-129B.
Boeing has a unique position as the largest aircraft manufacturer
in the world in terms of revenues, orders and deliveries.
Besides, it is one of the largest aerospace and defense
contractors in the world. Also, its revenues are spread across
more than 90 countries around the globe.
The latest contract is expected to bring some relief for this
Aerospace behemoth, as its technologically sound 787 model is
still grounded due to battery problems. Although we are still
uncertain about the outcome, consistent order booking of other
variants of commercial airplanes along with the order for this
new fleet of advanced attack helicopters is nevertheless helping
Recently, Boeing received orders worth $4 billion for a
cumulative 27 commercial airplanes. The orders include 17
airplanes of the 737 model.
United Continental Holdings Inc.
) ordered eight 737-900ERs, Qantas ordered five aircrafts and
leasing company GECAS ordered for another four airplanes. On the
other hand, 10 big 777 airplanes have been ordered by
Air Lease Corp.
Boeing currently retains a Zacks Rank #3 (Hold).