Turkey imposes $183 million penalty on Boeing over delivery delay

Turkey has demanded $183 million worth of services from U.S. aircraft maker Boeing as compensation for the late delivery of airborne early-warning and control (AEW&C) aircraft, a defense undersecretary official has said.

The Turkish Defense Ministry has requested an increase in the start-up support period from an initially planned two years to five years, as well as three years of software maintenance service and close to $32 million in spare parts, in return for canceling the $183 million delay penalty and accumulated interest, said Cemal Evci, a project director at the Undersecretary for Defense Industries (SSM).

He said the Boeing contract had been valued at $1.385 billion but that there had been a $59 million reduction, as some of the requirements were not met. He also noted Turkey had paid $637 million to Boeing in advance.

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