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BOEING SIGNS TURKEY AEW&C CONTRACT

4 June 02. Boeing Co. (NYSE:BA – News) said on Tuesday that Turkey’s military had signed a $1bn contract for four airplanes equipped with the company’s Airborne Early Warning & Control System, an advanced radar and communications platform.

The sale of the system, using modified Boeing 737-700 jetliners, must next be approved by the U.S. State Department and Congress.
Chicago-based Boeing, which runs its world-leading commercial jet business from Seattle and bases its space and communications unit in southern California, will deliver Turkey’s AEW&C system after filling an order for Australia in 2004, said spokeswoman Marta Newhart.

Boeing first announced it was negotiating with Turkey in November 2000, valuing the deal at roughly $1.5bn. The contract was won in the face of intense competition from Raytheon Systems offering an Airbus-based solution. Turkey said that it would follow the lead of Australia which chose the Boeing-led Wedgetail solution which included BAE Australia and Northrop Grumman as sub-contractors. Northrop is also a major supplier for the Turkish requirement.

The manufacturer will look for future sales to NATO countries and other U.S. allies, Newhart said, citing Singapore, Italy and Korea as potential customers.

“We think there could be strong interest in Asia and other parts of Europe,” Newhart said.

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