The United States Air Force said it had reached a deal with Boeing for the supply of E-7 Wedgetail airborne warning and control aircraft and downplayed concerns that the company’s internal crisis would harm its ability to supply the Pentagon.
The provisional deal covers the rapid production of prototypes as the Air Force phases out E-3 Sentry or AWACS airborne warning and control aircraft, and follows reports of disagreements over the price for the 737-based Wedgetail planes.
“We have reached agreement with (Boeing)… We have got a reasonable price point that we can afford,” Secretary of the Air Force Frank Kendall told reporters at the Royal International Air Tattoo military air show in western England.
A formal contract will be finalised in August, he added.
Please explain.edit: I get it. The military stopped playing hardball on price to throw Boeing a piece of corporate socialism, now when Boeing has 737 issues, and quietly as it’s preallocated defense budget.
Yes, too big to fail.