The U.S. Army selected the AH-64 over the Bell YAH-63 in 1976, awarding Hughes Helicopters a pre-production contract for two more aircraft. In 1982, the Army approved full production. McDonnell Douglas continued production and development after purchasing Hughes Helicopters from Summa Corporation in 1984. The first production AH-64D Apache Longbow, an upgraded version of the original Apache, was delivered to the Army in March 1997. Production has been continued by Boeing Defense, Space & Security; over one thousand AH-64s have been produced to date.
The U.S. Army is the primary operator of the AH-64; it has also become the primary attack helicopter of multiple nations, including Greece, Japan, Israel, the Netherlands and Singapore; as well as being produced under license in the United Kingdom as the AgustaWestland Apache. U.S. AH-64s have served in conflicts in Panama, Persian Gulf War, Kosovo War, Afghanistan, and Iraq. Israel has made active use of the Apache in its military conflicts in Lebanon and Gaza Strip, while two coalition allies have deployed their AH-64s in Afghanistan and Iraq.
Following the cancellation of the AH-56 Cheyenne in 1972, in favor of United States Air Force and Marine Corps projects like the A-10 Thunderbolt II and Harrier, the United States Army sought an aircraft to fill an anti-armor attack role that would still be under Army command; the 1948 Key West Agreement forbade the Army from owning fixed-wing aircraft. The Army wanted an aircraft better than the AH-1 Cobra in firepower, performance and range. It would have the maneuverability for terrain following nap-of-the-earth (NoE) flying. To this end, the US Army issued a Request For Proposals (RFP) for an Advanced Attack Helicopter (AAH) on 15 November 1972. As a sign of the importance of this project, in September 1973 the Army designated their five most important projects, the "Big Five" with AAH included.
Proposals were submitted by Bell, Boeing Vertol/Grumman team, Hughes, Lockheed, and Sikorsky. In July 1973, the U.S. Department of Defense selected finalists Bell and Hughes Aircraft's Toolco Aircraft Division (later Hughes Helicopters). This began the phase 1 of the competition. Each company built prototype helicopters and went through a flight test program. Hughes' Model 77/YAH-64Aprototype first flew on 30 September 1975, while Bell's Model 409/YAH-63A prototype first flew on 1 October. After evaluating test results, the Army selected Hughes' YAH-64A over Bell's YAH-63A in 1976. Reasons for selecting the YAH-64A included its more damage tolerant four-blade main rotor and the instability of the YAH-63's tricycle landing gear arrangement.
The AH-64A then entered phase 2 of the AAH program. This called for building three pre-production AH-64s, and upgrading the two YAH-64A flight prototypes and the ground test unit up to the same standard. Weapons and sensor systems were integrated and tested during this time, including the laser-guided AGM-114 Hellfire missile. The missile's development had began in 1974.
In 1981, three pre-production AH-64As were handed over to the US Army for Operational Test II. The Army testing was successful, but afterward it was decided to upgrade to the more powerful T700-GE-701 version of engine, rated at 1,690 shp (1,259 kW). The AH-64 was named the Apache in late 1981, keeping with the Army's traditional use of American Indian tribal names for its helicopters and it was approved for full scale production in 1982. In 1983, the first production helicopter was rolled out at Hughes Helicopter's facility at Mesa, Arizona. Hughes Helicopters was purchased by McDonnell Douglas for $470 million in 1984.The helicopter unit later became part of The Boeing Company with the merger of Boeing and McDonnell Douglas in August 1997. In 1986, the incremental or flyaway cost for the AH-64A was US$7.03 million and the average unit cost was approximately US$13.9 million based on total costs.
In the mid-1980s, McDonnell Douglas studied an improved "AH-64B" design with an updated cockpit, new fire control system and other upgrades. In 1988 funding was approved for a multi-stage upgrade program to improve sensor and weapon avionic systems and incorporate some digital systems. However, rapidly improving technology led to the upgrade program being cancelled for more ambitious changes. Development of the more advanced AH-64D Apache Longbow was approved by the Defense Acquisition Board in August 1990. The first AH-64D prototype flew on 15 April 1992, testing of the prototypes ended in April 1995; it was reported that they had significantly outperformed the AH-64A. On 13 October 1995 full-scale production of the Apache Longbow was approved, and a $1.9 billion five year contract was signed in August 1996 to upgrade and rebuild 232 existing AH-64A Apaches. The first production AH-64D flew on 17 March 1997 and was delivered on 31 March. The cost of the AH-64D program totaled US$11 billion through 2007.
In April 2006, Boeing was awarded a $67.6 million fixed-price contract for the remanufacture of several existing US AH-64As to the AH-64D configuration; between May 2009 and July 2011, a further five contracts were issued to remanufacture batches of AH-64As to the upgraded D variant. Since 2008, nations operating the older AH-64A have been urged to undertake modernization programs to become AH-64Ds, as Boeing and the US Army plans to terminate support for the A-variants in the near future. The Apache's effectiveness against ground forces and in urban warfare operations was bolstered by the addition of the AGM-114N - a Hellfire missile fitted with a thermobaric warhead; the AGM-114N was approved for full production in 2005. The use of thermobaric "enhanced blast" weapons has been a point of controversy.
The AH-64 Apache has a four-blade main rotor and a four-blade tail rotor. The crew sits in tandem, with the pilot sitting behind and above the copilot/gunner.The crew compartment has shielding between the cockpits, such that one crew member can survive hits. The compartment and the rotor blades are designed to sustain a hit from 23-millimeter (0.91 in) rounds. The airframe includes some 2,500 pounds (1,100 kg) of protection against ballistic strikes. The Apache also utilizes a self-sealing fuel system to protect against the loss of fuel caused by ballistic projectiles.