After extensive negotiations, the U.S. Air Force and Boeing have officially reached a $2.6 billion agreement for the first two E-7 Wedgetail aircraft. This deal, announced on Friday, involves Boeing developing and building the rapid prototype radar planes, which are expected to be delivered in fiscal year 2028, as per the Air Force’s press release. Additionally, Boeing’s announcement indicated that the deal encompasses “lifecycle development, training, and support for the Air Force’s E-7A fleet.”
“This agreement is a significant win for our warfighters, ensuring the Air Force’s ability to provide advanced airborne moving target indication in the coming years,” stated Air Force acquisition chief Andrew Hunter. “It 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.”
In the Boeing statement, Vice President and E-7 Program Manager Stu Voboril emphasized, “Global operators are proving that the E-7 AEW&C [Airborne Early Warning & Control] is a critical node for air superiority in the modern battlespace. In our partnership with the U.S. Air Force, we’re focused on stable, predictable execution to deliver crucial mission-ready capabilities today. This will put us on the path for the long-term growth of the aircraft and mission.”
The E-7 is a militarized version of Boeing’s 737 Next Generation commercial jet and is set to replace the aging E-3 AWACS, becoming the Air Force’s newest eye in the sky. Equipped with its distinctive „top hat” radar, manufactured by Northrop Grumman, the Wedgetail can actively track targets and fulfill various roles, including command and control. While the Air Force intends to leverage space assets for tracking missions in the future, the E-7 is expected to provide many of those capabilities in the interim.
The Air Force had previously awarded Boeing an undefinitized contract action (UCA) in February 2023 to commence work on the Wedgetail program. However, negotiations for a final price encountered challenges due to unexpected costs associated with integrating U.S.-specific requirements that differed from those needed by allies, such as the United Kingdom, which is paying approximately $2.5 billion for three planes and five radars.
Air Force Secretary Frank Kendall disclosed that the Air Force and Boeing had reached an agreement during the Royal International Air Tattoo (RIAT) in July, although final pricing details were not established at that time. Throughout the negotiations, Air Force requirements evolved to include features such as open mission systems architecture, enhanced satellite communications, and improved GPS, all of which are set to become part of the baseline Wedgetail moving forward.
The finalized deal resolves the prolonged talks, which were reportedly aided by contractor Shay Assad to expedite the process. The $2.6 billion contract is more than double the $1.2 billion UCA from February 2023 and pushes the delivery of the first aircraft to FY28, delayed from the initial goal of FY27 for delivery. A Boeing spokesperson declined to elaborate on the negotiated price, while Air Force spokesperson Ann Stefanek noted, “Price information is not publicly releasable as it constitutes non-technical proprietary information.”
At RIAT, Hunter remarked that there was a “business case” encouraging Boeing to address and control rising program costs, given the extensive market for the Wedgetail.
“The credit goes to Boeing and the suppliers who did a good job to bring the cost of the rapid prototyping program down,” Hunter commented. “That’s what we asked for. And that’s what they did.”
The Air Force aims to establish a fleet of 26 E-7 aircraft, with the press release indicating that the prototyping program will help inform a planned production decision in FY26. Other clients, including NATO, have also expressed interest in additional orders.
Highlighting the increasing international interest, Gillian at RIAT projected total sales of between 50 to 70 Wedgetails, and Voboril indicated to Breaking Defense last year that Boeing is targeting an annual production rate of six aircraft to satisfy global demand.
