1-Boeing receives Canadian contract for Chinooks

[SARgirl]

1-Boeing receives Canadian contract for Chinooks
Mon Aug 10, 2009 8:55am EDT

Link:
http://www.reuters.com/article/companyNews/idUSN1042788420090810

News Story:

* Boeing receives order for 15 CH-47Fs from Canada

* Order valued at $1.15 billion

CHICAGO, Aug 10 (Reuters) - Boeing Co (BA.N) on Monday said it has received a $1.15 billion contract from the Canadian government for 15 new CH-47F Chinook heavy-lift helicopters.

The helicopters will be produced at the Boeing Rotorcraft Systems facility in Ridley Township, Pennsylvania. Deliveries are expected to be between 2013 and 2014.

Chicago-based Boeing and rival Airbus (EAD.PA) have been hit hard as carriers and cargo operators grapple with the global recession and credit crisis.

Meanwhile, Boeing's defense unit struggles with sweeping cuts to the Pentagon's fiscal 2010 budget request earlier this year.

Canada's Defense Minister Peter MacKay said last week that Canada would overcome a critical shortage of military transport helicopters in Afghanistan by buying six used machines from the United States as well as leasing six Russian-made aircraft. (Reporting by Kyle Peterson, editing by Gerald E. McCormick)

 

[ton_ami69]

Glad to hear it's ordered and on it's way. 

But I found that the USA is buying 191 of these at around 4.8 billion which makes it approx. 25 million per aircraft.  We are paying approx. 77 million per.  How so?  Is there more to the price than just an aircraft?  Parts maybe?

 

[dapaterson]

US and Canadian accounting standards for the military are different.  US prices are for the aircraft only.  The Canadian price will include some spares; project overhead cost; certain infrastructure costs; training costs; any Canadian customizations (for example, different radios and sensors); and may include some lifecycle support costs...

In brief, the numbers are not immediately comparable.  If you are willing to wade in to the detailed cost information, you can probably identify the differences and come up with comparables.  But it's not easy or immediately intuitive to do so.

 

[axeman]

Are we getting entirely new airframes or are we getting redone A models that have been stripped down and rebuilt with new parts/?. right now over in the sand box we have a Chinook that fought in Vietnam  and theres another that was first rolled off the asembly line in july of 65...

 

[Strike]

Are we getting entirely new airframes or are we getting redone A models that have been stripped down and rebuilt with new parts/?. right now over in the sand box we have a Chinook that fought in Vietnam  and theres another that was first rolled off the asembly line in july of 65...

If you were to read the article you would see that we are getting "F" models, which would be brand spanking new.

 

[PuckChaser]

Are we getting entirely new airframes or are we getting redone A models that have been stripped down and rebuilt with new parts/?. right now over in the sand box we have a Chinook that fought in Vietnam  and theres another that was first rolled off the asembly line in july of 65...

The Dutch are flying our old Chinooks in RC(S), and they still run fine.... we make do with the kit we have, and I'm certain the techs that inspect the helos would ground them at the very hint of something being wrong.