Boeing and the U.S. Air Force have agreed on a $2.56 billion contract to develop two prototype E-7A Wedgetail aircraft, designed as a replacement for the aging E-3 Sentry AWACS fleet.

The E-7A, based on the Boeing 737, features advanced airborne early warning and control systems with a distinctive radar antenna.

The aircraft will enhance airborne battle management, providing advanced situational awareness and long-range capabilities against adversaries.

The Air Force aims to field 26 Wedgetails by 2032, with the first prototypes expected by fiscal 2028, Fox Business has reported.

The agreement also includes cooperation with allies and life cycle support for the E-7A fleet.

Written by B.C. Begley