Boeing

Boeing [NYSE: BA] officials delivered the first production aircraft from the Canadian Forces CF-18 Modernization Program, Phase 1, to the Department of National Defence in a ceremony held today at Macdonald-Cartier International Airport. Accepting on behalf of the department was the Honourable John MacCallum, Minister of National Defence.

The Phase 1 program, valued at CAD$880 million, will modernize the fleet of 80 CF-18 aircraft to the specifications of newer models through avionics configuration upgrades. Completion of Phase 1 of the contract will bring the Canadian Air Force into full inter-operability with Allied forces. Boeing was awarded the contract in April of 2001. As part of its contract with the Government of Canada, Boeing is committed to provide CAD$507.5 million in industrial regional benefits throughout Canada. "Today is another proud moment in our 80 year history in Canada," said Tony Parasida, Boeing vice president for the F/A-18 program. "Delivering this aircraft, on time and on budget, is testimony to the world class team we formed to meet a vital requirement of the Canadian Armed Forces."

This first phase of CF-18 modernization is a cornerstone project that entails the procurement and installation of a new radar, "Have-Quick" jam-resistant radios, Combined Interrogator/ Transponders, Stores Management Systems, Mission Computers and Embedded Global Positioning Systems/Inertial Navigation Systems. The project consists of 2 phases. Phase 1 is scheduled to be completed in 2006 and Phase 2 to begin in 2006.

Boeing contributes approximately CAD$1.5 billion annually to the Canadian economy, directly employs around 2,000 highly skilled workers while supporting an estimated 30,000 others through direct and indirect employment. The Company also has a significant presence across the region with plants located in Arnprior, Winnipeg and Toronto, as well as a software company, AeroInfo Systems Inc., in Richmond, British Columbia, which provides sophisticated maintenance-planning software applications for the airline industry.