Boeing says it has received a $1.6 billion contract to start producing the Navy's new anti-submarine aircraft based on the 737 passenger jet.
Boeing says the contract pays for the first six production versions of the P-8A Poseidon aircraft along with spare parts, training and other services. Eventually, the Navy wants to buy 117 of the planes, which also will be used for surveillance, reconnaissance and surface warfare. The Navy wants to be able to put the first planes in operation in 2013.
The planes will be built at Boeing's Everett, Washington, plant. Boeing already has built five of the jets for testing.