After receiving the second and expected final multi-year contract for AH-64E Apache attack helicopters from the Army, potentially worth up to $3.8 billion, Boeing [BA] has said it “absolutely” believes there will be future procurement deals for the platform.
“Absolutely. With Version 6.5 coming up as well as the Boeing Apache team continuing to develop the configuration of the Modernized Apache, we believe there will be future procurement deals for the AH-64,” a Boeing spokesperson told
Defense Daily.
Army officials have previously stated the latest AH-64E Apache multi-year deal would likely be the last as the service’s shift its priority to buying the Future Vertical Lift fleet.
The Army’s Apache program office said the new multi-year deal covers aircraft procurement over the next three fiscal years, adding in a statement to Defense Daily that “FY ‘25 is the last planned procurement of Apaches for the Army.”
Boeing was awarded the second multi-year deal for AH-64E Apaches on March 17, receiving the $1.9 billion contract covering deliveries of more than 100 remanufactured helicopters for the U.S. Army and 54 for Australia and Egypt (Defense Daily, March 17).
“This multi-year contract is critical for the warfighter and the entire Apache team,” Col. Jay Maher, the Army’s Apache project manager, said in a statement. “It demonstrates the Army’s commitment to continue putting unmatched capability into the hands of our nation’s finest, while providing stability and predictability for the outstanding citizens and companies that pour their talent into producing the best attack helicopter in the world.”
Boeing noted the contract could total $3.8 billion if future options are picked up, with the Army’s PM Apache adding the service has “programmed funding for 115 aircraft representing the base of the contract plus an additional 15 options for a total of 130.”
“There are additional options built into the contract that the Army could choose to fund later if additional aircraft are needed,” the Army’s PM Apache said.
Deliveries of Apaches under the new procurement deal are expected to begin in 2024 and conclude in 2027, according to Boeing.
Kathleen “KJ” Jolivette, Boeing Defense Space and Security’s vice president and general manager of vertical lift and previously the vice president of attack helicopters, told reporters in September, the company was “out to change [the Army’s] mind” about the next multi-year deal being the last for the platform (Defense Daily, Sept. 13 2022).
“We’re out to change their minds. Like I said, we’re always investing and looking forward. Of course we don’t want it to be the last multi-year,” Jolivette said during a media visit to the company’s Mesa, Arizona site where it builds Apaches. “There’s a lot of demand for Apache. I think the most important piece of it is everyone knows the Army wants it around until 2050, 2060.”
Jolivette also noted at the time that Boeing was not working on an F-model Apache and is instead under contract with the Army to develop the new “Version 6.5” upgrade, which is expected to be powered by the new General Electric Aviation [GE]-built T901 engine (Defense Daily, Sept. 14 2022).
Jessie Farrington, Boeing’s business development director for attack helicopter programs, said at the time the V6.5 update for Apache aims to continue the platform’s path to being fully compliant with Modular Open Systems Architecture, including integration of an open system interface, to ensure capability for rapid insertion of new technologies.
“There is no stated end of service life for Apache. The Army knows the Apache is going to be the principal attack helicopter for now and into the future. We know that the Apache is going to be around for probably three decades, 30-plus years,” Farrington told reporters during the Mesa facility visit in September.
Boeing received the first multi-year contract for Apaches in 2017, covering 244 remanufactured helicopters for the U.S. Army and 24 new-build aircraft for an international customer.
The Army last June also signed the expected final multi-year UH-60 Black Hawk deal with Sikorsky [LMT], awarding the company a five-year deal worth $2.3 billion for delivery of 120 H-60M helicopters (Defense Daily, June 27).
With options, the Army said the 10th multi-year deal for Black Hawks could potentially be worth $4.4 billion and cover up to 255 helicopters.