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NATO Gives Boeing $1 Billion Deal to Upgrade AWACS Reconnaissance Planes

AWACS part of NATO investment in hi-tech surveillance

Announcement comes days before NATO summit in London

BRUSSELS, Nov 27 (Reuters) – NATO on Wednesday awarded Boeing Co a $1 billion contract to upgrade its fleet of AWACS reconnaissance planes, a deal officials said showed the strength of transatlantic cooperation days before an alliance summit in London.

First flown in 1982 and repeatedly modernised, the Boeing-made planes, which can detect hostile aircraft, missiles, ships and other weaponry far beyond NATO borders, will be overhauled with more powerful computer processors, servers and equipment.

The 14 planes, based at an air base in Germany, can already exchange information via digital data links, with ground-based, sea-based and airborne commanders, but need a greater capacity to transmit data as technology develops.

The upgrade will keep one of the few military assets owned and operated by the Western alliance in service until 2035.

AWACS have been flown in support of the international coalition against Islamic State, gazing deep into Syria from Turkey, as well as along NATO’s eastern flank following Russia’s 2014 annexation of Crimea from Ukraine.

“The modernisation will ensure that NATO remains at the leading edge of technology,” NATO Secretary-General Jens Stoltenberg told a news conference alongside Boeing President Michael Arthur, standing in front of one of the planes.

“It will provide AWACS with sophisticated new communications and networking capabilities, so these aircraft can continue their vital missions,” he said.

One NATO official described AWACS, which have crews drawn from 18 different allies, as a symbol of NATO unity, at a time when U.S. President Donald Trump has questioned its value and French President Emmanuel Macron last month said NATO was dying.

The upgrade will be funded by 16 NATO allies, including the United States, Germany, Turkey, Italy and Spain, and some work will be subcontracted to European suppliers including Leonardo and Airbus.

The modernisation comes as NATO takes delivery of the first of five Global Hawk drones, which will be based in Italy.

After years of delays, the high-altitude drones made by Northrop Grumman give the alliance its own spy drones for the first time and will work with the AWACS to protect ground troops, as well as other tasks.

The drones will be able to fly for up to 30 hours at a time in all weather, providing near real-time surveillance data.

(Reporting by Robin Emmott Editing by Mark Heinrich)

Boeing To Help Ukrainian Plane Maker Antonov

KIEV (Reuters) –  Ukrainian plane maker Antonov, known for producing the world’s biggest aircraft, plans to restart serial production by the end of next year thanks to a deal with Boeing that will end Antonov’s dependence on Russia.

Relations between Ukraine and Russia collapsed following the annexation of Crimea in 2014 and Antonov, which imported more than 60 percent of its plane parts from Russia, halted serial production two years later.

It now plans to build eight planes a year thanks to a deal with Aviall, Boeing’s parts, equipment and services unit, with the first two or three planes ready by the end of 2019, Antonov chief Oleksandr Donets told Reuters in an interview.

He gave no details on future customers. Antonov’s main sales markets have been Russia, the former Soviet republics and Africa.

The companies will jointly set up storage facilities in Ukraine by November, he said.

“(The agreement with) Aviall has given us two gains. We are setting up a joint warehouse, located on Ukrainian territory in (the city of) Gostomel,” Donets said.

“This warehouse will deal with products, materials, metals, non-metals – with all the components which we are not able to get from our former partner, the Russian Federation.” The warehouse could cost tens of millions of dollars, Donets added, to be funded by Aviall.

Antonov was founded in 1946 and has manufactured some 30 different types of airplane including the two biggest air cargo planes – the An-124 Ruslan and An-225 Mriya.

Mriya, built in 1988 for the Soviet space shuttle programme is still the world’s largest and heaviest plane which is able to carry a cargo of up to 250 tonnes.

Ukraine’s leaders are pushing the country on a pro-Western course, aspiring to join the European Union and NATO while cutting trade and diplomatic ties with Russia and weaning itself off dependence on Moscow in sectors like defence and energy.

Ukraine no longer imports any gas directly from Russia and in July completed another milestone as, for the first time, a unit at one of its nuclear power plants was fully loaded with fuel from U.S. firm Westinghouse rather than from Russia.

Aviall will support Antonov’s new manufacturing programme to build the AN-1X8 planes and will have exclusive rights to help service the planes, Donets said, envisaging that Aviall will source parts from the United States, Canada, Israel and Europe.

Antonov also wants Aviall to procure equipment for Antonov to produce more parts domestically, he said.

Boeing rival Airbus also made a recent foray into Ukraine, announcing an agreement in July to sell 55 helicopters to the interior ministry for search and rescue, public services and emergency medical service missions.

By Pavel Politick; Writing by Matthias Williams; Editing by Alexandra Hudson