Feb 19, 2014

Turkey Demands $183M in Penalties From Boeing for AEW&C Program Delays

The Turkish government has demanded $183 million worth of penalties from Boeing due to major delays in the delivery of spy planes.
The Turkish Defense Ministry demanded an increase in the start-up support period from an initial two years to five years as well as three years of software maintenance service in addition to $32 million worth of spare parts in return for writing off the $183 million penalty and accumulated interest due to delays in the AEW&C program.
Boeing officials were not immediately available for comment.
Boeing delivered the first aircraft to Turkey in late January although original deliveries had been planned for 2008.
Boeing has said that it will complete deliveries in 2015. The company said two more AEW&C aircraft are to be delivered this year, with the fourth in 2015.
The AEW&C is based on the Boeing 737-700. Australia and South Korea also operate the AEW&C platforms.

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