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Boeing Set To Extend C-17 Production At Own Risk

Mon Jun 18, 2007 10:34 am

Boeing Set To Extend C-17 Production At Own Risk -Sources

June 17, 2007: 08:27 PM EST


"PARIS -(Dow Jones)- Boeing Co. (BA) is preparing to extend production of C-17 cargo jets at its own financial risk, industry and U.S. government officials told Dow Jones Newswires.

Boeing began to shut down its C-17 supply chain in March, saying it could not extend the line past 2009 without a new Pentagon commitment. The Defense Department's 2008 budget request did not include any of the big cargo jets, and Boeing said it was running out of work for its suppliers."

http://money.cnn.com/news/newsfeeds/...OWJONESDJONLINE000337_FORTUNE5.htm
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FlagshipAZ
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RE: Boeing Set To Extend C-17 Production At Own Risk

Mon Jun 18, 2007 1:56 pm

Let see here...the USAF has commited to 180 airframes, with another 10 up in the air, the RAF has 5 firm & wants another 3, the RAAF has 4 firm orders, the RCAF has 4 firm orders and NATO wants 4 for its fleet. That's a total of 210 airframes, and roughly 170-175 have been delivered so far, leaving 35 at the most to be built. So Boeing is really not taking much of a gamble here. It's a long-term investment on Boeing's part that I'm sure will pay off nicely for the company, and keeping many people employed for at least another 3 years. Well done Boeing. Those future birds won't be whitetails for very long.
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checksixx
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RE: Boeing Set To Extend C-17 Production At Own Risk

Mon Jun 18, 2007 11:55 pm

Correct...I don't think they're taking any gamble here...especially since they still have delivery commitments to the USAF through 2009...not to mention FMS commitments. This is another attempt to see if they can garner more orders from the DoD.
 
dl021
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RE: Boeing Set To Extend C-17 Production At Own Risk

Tue Jun 19, 2007 3:23 am

I'd say that they have a good idea that there'll be either another US government order or they are pretty sure about the recent RFPs from "people with money".

I doubt they're betting the company the way they are up in Everett.

This may also be a tactic to keep the plant open for possible double use with the 787. Never know what's going through their minds....
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LAXintl
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RE: Boeing Set To Extend C-17 Production At Own Risk

Thu Jun 21, 2007 11:44 pm

Quote:
Boeing saves its C-17 line in Long Beach
Company counts on the cargo plane again topping Air Force's wish list.
June 21, 2007

LONG BEACH - Boeing Co. will use its own money to keep the C-17 assembly line in Long Beach open through at least 2010, company executives said.

The company told workers Tuesday that it's investing its own money to commit Boeing resources for funding 10 new C-17s. Ordering 10 more planes would keep the line from shutting down, allowing the possibility of an even larger order to come through later.

A letter from Dave Bowman, Boeing's vice president and C-17 program manager, announced the news to federal, state and local officials who united to lobby for more C-17s.

"Because of your hard work, we have continued bipartisan Congressional support, and increasing signs that the U.S. Air Force is interested in 30 additional C-17s," Bowman wrote.

http://www.dailybreeze.com/news/articles/8105197.html
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kc135topboom
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RE: Boeing Set To Extend C-17 Production At Own Risk

Fri Jun 22, 2007 11:54 pm

Quoting DL021 (Reply 3):
This may also be a tactic to keep the plant open for possible double use with the 787. Never know what's going through their minds...

It could be, but my guess is Boeing will move the KC-767A/B-767-300ERF production there, with the C-17A. That gives them another production line available (in Everett) for the B-787. Then they don't have to fly B-787 parts to California.
 
dl021
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RE: Boeing Set To Extend C-17 Production At Own Risk

Sat Jun 23, 2007 2:24 am

Quoting KC135TopBoom (Reply 5):
Quoting DL021 (Reply 3):
This may also be a tactic to keep the plant open for possible double use with the 787. Never know what's going through their minds...

It could be, but my guess is Boeing will move the KC-767A/B-767-300ERF production there, with the C-17A. That gives them another production line available (in Everett) for the B-787. Then they don't have to fly B-787 parts to California.

That would be interesting, although I see that it would be difficult.....although converting the existing line to do both can't be any more expensive than opening a new facility in Everett, and it'd keep the old Douglas line going.
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echster
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RE: Boeing Set To Extend C-17 Production At Own Risk

Sat Jun 23, 2007 5:40 am

Saw a quote this afternoon in a news story where Murtha says if the authorizers add 10 x C-17s to their bill, he'll add the money for them in the appropriations bill. There were other additions mentioned, mostly on the ships side.
 
Devilfish
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RE: Boeing Set To Extend C-17 Production At Own Risk

Sat Jun 23, 2007 11:45 am

I posted this in the other thread. Could we consider then that the NATO order is assured?.....

http://www.defense-aerospace.com/cgi...hH8AAAEAAAQkfjgAAAAO&modele=jdc_34

Allies Agree On Strategic Airlift Capability Initiative
(Source: NATO; issued June 20, 2007)

Quote:
"SAC aircraft will be flown by multinational aircrews; a multinational military structure will be created to command and control the aircraft. The 17 SAC nations will fly the planes based on their national requirements, which may include national, NATO, or EU operations, as well as other international purposes such as humanitarian airlift or disaster relief for the UN.

In today’s decision, the Alliance formally approved the establishment of a NATO Airlift Management Organization (NAMO) and NATO Airlift Management Agency (NAMA) to acquire and support the aircraft. The SAC plans to acquire 3-4 C-17s; the first is expected to be delivered in mid-2008.

The SAC planes will be configured in a similar way as the C-17s flown by the US Air Force, Canadian Air Force and the UK Royal Air Force. The air crews will be trained to the same basic standards, including air-to-air refueling and night vision operations."
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kc135topboom
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RE: Boeing Set To Extend C-17 Production At Own Risk

Sun Jun 24, 2007 10:15 pm

Quoting DEVILFISH (Reply 8):
I posted this in the other thread. Could we consider then that the NATO order is assured?.....

Well, it sounds like it, but with the EU side of NATO, you can never be sure.

But the same applies to the US side of NATO, so please don't think I'm picking on the Europeans.

The US legislature can be just as stupid (sometimes even more stupid), as any in Europe.
 
HanginOut
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RE: Boeing Set To Extend C-17 Production At Own Risk

Tue Jun 26, 2007 11:27 am

Quoting KC135TopBoom (Reply 5):
It could be, but my guess is Boeing will move the KC-767A/B-767-300ERF production there, with the C-17A. That gives them another production line available (in Everett) for the B-787. Then they don't have to fly B-787 parts to California.

Considering what the value of the land is, it is more likely that the C-17 line would be shut down and moved up to the Northwest or even to the midwest somewhere. I just don't see them moving the 767 line to Long Beach. My guess is that once C-17 production is finished that the Long Beach facility will be shut down and sold to some very eager developers.
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XT6Wagon
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RE: Boeing Set To Extend C-17 Production At Own Risk

Tue Jun 26, 2007 12:30 pm

The C17 suppliers buy thier stuff some 2-3 years ahead of when Boeing delivers the final airframe produced with that part. So Boeing has to order parts that far ahead to give thier suppliers time to buy from thier suppliers. You don't just wander into target one morning and buy a handful of lego sets and a couple of PSP's and go build a C17 that afternoon.

*IF* the C17 factory is used for anything else, it might be for the 737 military frames after the 737RS is shutting down 737 lines. More likely it would be easier/cheaper for Boeing to build a new assembly hall somewhere close to the spirit plant and call that good.

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