Boeing Extends C-17 Line Closure Decision To August
Boeing Extends C-17 Line Closure Decision To August
By Amy C. Butler
07/12/2006 03:16:34 PM
After lacking the commitments it hoped for by June this year, Boeing has extended its deadline for a decision whether to close its C-17 transport production line to August, according to a company official.
Boeing executives went on a media blitz last month, saying they could guarantee a $220 million per-unit price for international customers only through June. Officials are now considering extending that price through August.
Since the beginning of the year, Boeing has been funding the line from company coffers -- having already started construction on nearly two dozen white tails beyond current orders -- in hopes that sales abroad, and possibly from the U.S. Air Force, would materialize.
The U.S. Air Force last year decided not to up its existing purchasing plans of 180 transports, prompting Boeing to look abroad for sales. The Air Force has received 152 C-17s to date.
So far, Canada signed up to purchase four of the aircraft as part of its sweeping aircraft recapitalization program. The United Kingdom, which has four transports, has committed to a fifth and Australia wants four. Three could be purchased by the U.S. Air Force.
Boeing hopes that by August it can get a commitment from NATO, which has a long-term requirement for strategic transports. However, NATO is only expected to buy up to four aircraft.
Without orders by August, senior Boeing officials will readdress whether to continue funding the production line. The company has already notified its suppliers of the extension and possible closure. Some top suppliers are Pratt & Whitney, which provides the engines; Honeywell, which provides some data management and display systems; and Vought Aircraft Industries, which provides some flight surfaces, wing components and portions of the tail section.
