Boeing to pay $600 mln penalty to Turkey over AEW&C delay

Cengizhan ÇATAL ANKARA/Hürriyet

U.S. aircraft manufacturer Boeing will pay nearly $600 million in compensation to Turkey for a much-delayed multibillion-dollar airborne early warning and control (AEW&C) program that is anticipated to be used initially at the country’s Syrian border.

Under a July 23, 2003 contract, priced at over $1.6 billion, Boeing was to develop and deliver four AEW&C aircraft to the Turkish Air Force (TSK) in 2008.

After years of postponement the aircrafts are expected to be included in TSK’s inventory in the first months of 2014.

However, Boeing will pay around $600 million Turkey in penalty, to compensate around $637 million the country has reportedly paid since the beginning of the project.

The program involved 737-700 aircraft, ground radar and control systems, plus ground control segments for mission crew training, mission support and maintenance support.

The 737-700 aircraft are planned to be used at the Syrian border and one of the aircraft has been reportedly taking test flights at the border successfully.