VOLKEL, Netherlands, Boeing [NYSE: BA] and the Royal Netherlands Air Force (RNLAF) have signed a contract for maintenance and spare parts for Chinook and Apache helicopters and combines two formerly separate supply chains.

The $60 million integrated contractor logistics support (ICLS) contract will provide support in the Netherlands and at Ft. Hood, Texas, where Dutch Chinook and Apache air crews train with the U.S. Army. The agreement is based on the number of expected flight hours rather than ordering and stocking parts.

John Guasto, director of Boeing's international rotorcraft support, said: "This partnership will help both parties for years to come.

"The Boeing and RNLAF teams worked tirelessly to develop and refine this program to reduce costs and improve reliability."

The program will increase flight-hour readiness for the Air Force according to Boeing, the aircraft maker.

Peri Widener, global services & support vice president of rotorcraft support, commented: "The Boeing and RNLAF teams have partnered to create an innovative and integrated program approach which is the first of its type globally for Boeing Rotorcraft.

"This will result in more affordable support solutions and enhanced flight hour readiness of Royal Netherlands Air Force CH-47 Chinook and AH-64D Apache helicopters.

Lieutenant General Alexander Schnitger, Commander of the Royal Netherlands Air Force, added: “This agreement underscores our mutual commitment to a capable force for decades to come.

"This contract is not just a support contract. It is a long term partnership between Boeing and the Royal Netherlands Air Force which will increase the availability of our CH-47 Chinook and AH-64 Apache helicopters at lower costs. I am very pleased that the Dutch industry is also part of this initiative that enables industry to enhance their maintenance, repair and overhaul capabilities in the Netherlands."

Boeing is has recently signed a memorandum of understanding with AAR Aircraft Component Services to potentially provide maintenance, repair and overhaul services.