Boeing gets $2.5 billion Air Force contract for new airborne warning and control aircraft

Boeing and the Air Force announced Friday that they reached an agreement on the pricing for a $2.56 billion contract to develop two rapid prototype E-7A Wedgetail aircraft.

The E-7A Wedgetail is an airborne early warning and control (AEW&C) aircraft that's based on the Boeing 737, but it features advanced electronics and a fixed radar antenna mounted on top of the fuselage that gives the aircraft a distinctive appearance. 

Wedgetail is the Air Force's planned replacement for the aging fleet of E-3 Sentry airborne warning and control systems (AWACS), which will continue to serve in that role until they're phased out when the Wedgetail is fielded in the future.

"The E-7A provides advanced airborne battle management and command and control and moving target indication capabilities," the Air Force said in a press release. "Its advanced multi-role electronically scanned array radar will enhance airborne battle management, providing improved situational awareness and enabling long-range kill chains with peer adversaries."

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"Our customers have an urgent need for integrated battlespace awareness and battle management," said Dan Gillian, vice president and general manager of Boeing Defense, Space & Security's Mobility, Surveillance & Bombers Division. 

"The E-7A is the airspace lynchpin to continuously scan the skies, command and control the battlespace, and integrate all-domain data providing a decisive advantage against threats. With our open systems architecture approach, capabilities can be rapidly inserted over time as threats evolve," Gillian added.

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"This agreement is a win for our warfighters, paving the way for ensuring the Air Force's ability to provide advanced airborne moving target indication in the coming years," said Assistant Secretary of the Air Force for Acquisition, Technology, and Logistics Andrew Hunter.

Hunter added the deal is "also an exemplar of our ability to leverage and support the expertise and investments of our partners and allies to support our common security objectives."

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The Wedgetail is currently operated by the air forces of U.S. allies Australia, South Korea and Turkey, while the United Kingdom and NATO have also ordered the aircraft. The Air Force plans to eventually have a fleet of 26 Wedgetails by 2032.

The Royal Australian Air Force, British Royal Air Force and U.S. Air Force entered into a trilateral cooperation agreement related to the development, evaluation and testing, interoperability, sustainment, operations, training and safety of the Wedgetail program.

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Boeing's contract also includes life cycle development, training and support for the Air Force's E-7A fleet. The two operationally representative prototype E-7A Wedgetails included in the contract are expected to be delivered in fiscal 2028.