JERUSALEM (Reuters) -The Israeli defence ministry said on Thursday it had signed an agreement to acquire 25 next generation F-15 fighter jets from Boeing Co (NYSE:BA).
It said the $5.2 billion agreement was part of a broader package of U.S. aid approved by the U.S. administration and Congress earlier this year and included an option for 25 additional aircraft.
Delivery of the new F-15IA aircraft will begin in 2031, with 4-6 aircraft to be supplied annually, it said.
The aircraft will be equipped with weapons systems integrated with existing Israeli weapons as well as having increased range and payloads.
"These advantages will enable the Israeli Air Force to maintain its strategic superiority in addressing current and future challenges in the Middle East," the ministry said in a statement.
"This F-15 squadron, alongside the third F-35 squadron procured earlier this year, represents a historic enhancement of our air power and strategic reach - capabilities that proved crucial during the current war," the director general of the defence ministry, Eyal Zamir, said in the statement.
Zamir said that the government has secured procurement agreements worth nearly $40 billion since the onset of the war in Gaza that began Oct. 7, 2023.
"While focusing on immediate needs for advanced weaponry and ammunition at unprecedented levels, we're simultaneously investing in long-term strategic capabilities," he said.
For Boeing, the F-15 agreement is the second major deal this year. In August, flag carrier El Al (TASE:ELAL) Israel Airlines, signed a deal with Boeing for the purchase of up to 31 737 MAX aircraft worth as much as $2.5 billion, beating out rival Airbus.
Ido Nehushtan, president of Boeing Israel, said the company's relationship dates back to Israel's establishment and "will continue working with the U.S. and Israeli governments to deliver the advanced F-15IA aircraft through standard military procurement channels."