Boeing Q1 results reveal T-7 trainer trouble
The T-7A Red Hawk is scheduled to achieve IOC with the US Air Force in 2024. (Photo: Boeing)
Boeing's T-7 next generation trainer programme has suffered financial difficulties linked to supplier problems and COVID-19 complications.
Boeing's T-7 advanced trainer has been troubled by financial problems with the manufacturer posting a $367 million charge for the programme, caused by supplier negotiations influenced by supply chain problems, COVID-19 issues and inflationary pressures.
The charge was declared by the manufacturer in its Q1 2022 results, published on 27 April and which also showed that defence related activities saw a drop in revenue to $5.5 billion - a 24% decrease from quarterly figures recorded for the same period in 2021.
On a more positive note, the manufacturer pointed to a number of key contracts and manufacturing milestones secured or achieved over the course of Q1 2022, including, an order for six USSOCOM MH-47G Block II Chinook helicopters; the building of New Zealand's first P-8A MPA and completion of the 400th T-7A Red Hawk test flight.
Shephard's Defence Insight suggests that a procurement decision covering two low-rate production and eight rounds of full-rate production will be approved by the US DoD for the T-7A effort after 2023, with the USAF currently on course to buy 351 aircraft.
Boeing's military aircraft deliveries were broadly in line with numbers recorded in Q1 2021. The new figures revealed 22 AH-64E Apache attack helicopters were made, alongside seven CH-47F Chinooks, four F/A-18 fighters, four KC-46 tankers, three P-8 MPAs and one F-15 jet.
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