Boeing hopes on Chinook sale

Deal with the UAE could be worth more than $3 billion.

Boeing is on track to conclude a series of major defence sales to the UAE worth more than US$3 billion (Dh11.01bn) if the Armed Forces goes ahead with another package including Chinook helicopters. After an estimated $1.2bn contract for heavy-lift C-17 military planes signed last year, Boeing and the UAE are in negotiations for a $2bn package involving up to 16 CH-47 Chinook helicopters plus other equipment, parts and training, says the US Defence Security Co-operation Agency (DSCA).
The DSCA made the announcement publicly and to Congress last month because the deal is structured as a government-to-government sale. "This proposed sale will contribute to the foreign policy and national security of the US by helping to improve the security of a critical and key partner," the agency said. The sale would also help the UAE to transport equipment and troops in the region and support US and NATO airlifting in Afghanistan, the DSCA said.
Boeing officials said they were contractually prevented from discussing the deal, but admitted there was renewed interest in the Chinook in the region after its performance in Afghanistan. "Of all the regions in the world, I think the Middle East offers our greatest prospects (for the Chinook)," said Paul Oliver, the vice president of business development for Middle East and Africa at Boeing Defence, Space and Security.
"One of the biggest selling points is people have seen how it has performed in the mountainous regions and at the altitudes." The helicopter can fly up to 5,600 metres, land on water and has performed extreme rescues by balancing the tail on the top of a mountain, with the front end in free space. "It can be used for humanitarian, it can be used for search and rescue - it's just a very versatile helicopter," Mr Oliver said.
The UAE operates a fleet of 12 Chinooks built in the 1970s that it bought from Libya in 2003, although these were produced under licence by AgustaWestland of Italy, not Boeing. The deal would a major step forward for Boeing's Middle East push. The company lost out to Lockheed Martin in 2000 in a $6.4bn fighter jet contract with the UAE. Its biggest recent success came last month, when the UAE signed the contract for six C-17s, including follow-up support such as material management and depot maintenance. The planes are believed to cost $200 million each.
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