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

CNN Money ^ | June 17, 2007: 08:27 PM EST | Rebecca Christie

[Paleo Conservative]

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.

But now the company is prepared to keep C-17 production going while Congress and the Air Force wrestle with when and how they might buy more planes. Officials say Boeing wants to avoid a prolonged suspension, which would wreak havoc on the supply chain and production costs.

As soon as Monday, Boeing could notify the Air Force, suppliers and its own workers that the C-17 line will stay open, industry officials said. This would allow companies like Goodrich Corp. (GR) and Vought Aircraft Industries Inc. to resume work on long-lead items for the cargo jets, which take nearly three years to build.

If Boeing ramps the line back up, it is likely to extend production by another 10 planes. That's the number funded in a $2.4 billion House of Representatives proposal for the 2008 defense budget. However, the Senate so far has not added any money for C-17s to next year's budget.

[Paleo Conservative]

I had to excerpt, because the source was CNN. No other sources could be found, so you'll have to click on the link to read the whole story.

[Paleo Conservative]

If you want on or off my aerospace ping list, please contact me by Freep mail.

[omnivore]

This is a big risk they're taking, as a good faith gesture. Good for them. Hope it works. We need more C-17s.

By the way, speaking of the Senate being a pimple on the rump of progress, is McCain still stonewalling against Boeing making some new tanker planes?

[ASOC]

Hummm

COuld a KC-17 be far off?

[Paleo Conservative]

Too slow and too expensive.

[cardinal4]

Its a risk, but a good one. Hell, they could make a tanker or an AWACS model..

[pissant]

I’m glad they are. They will be getting more orders soon enough.

[SIDENET]

Its a risk, but a good one. Hell, they could make a tanker or an AWACS model..

I know that the unit cost of C-17s is high, but they are superb airframes. I think it would be cool to see them used for ISR platforms (E-3, RC-135, E-8, etc.). Will never happen, though.

[Paleo Conservative]

It’s cheaper and better to make tankers and AWACS out of civilian transport planes. Boeing already builds an AWACS version of the 767 and is proposing a 767 tanker version to replace the KC-135 fleet.

[The KG9 Kid]

Deck it out inside and make a passenger model where each passenger can bring 1000 pounds of cargo with them when they fly.

[cardinal4]

Deck it out inside and make a passenger model where each passenger can bring 1000 pounds of cargo with them when they fly.

Now thats a good idea!

[null and void]

Deck it out inside and make a passenger model where each passenger can bring 1000 pounds of cargo with them when they fly.

Beat me to it.

Bury the airbust 380...

[unspun]

Actually, the Dempartment of Homeland Security is going to be using them under a contract with Mexico, to bring in guest workers.

[keepitreal]

Deck it out inside and make a passenger model where each passenger can bring 1000 pounds of cargo with them when they fly.

Or a congressional version called the Nancy Pelosi friends and family gratis airline.

[SIDENET]

COuld a KC-17 be far off?

How about an AC-17 gunship?

;-)

[The KG9 Kid]

There may not be a worthwhile market for it, but there have been times that I wished the option was available.

[null and void]

TSA inspectors?

[Paleo Conservative]

Actually, the Dempartment of Homeland Security is going to be using them under a contract with Mexico, to bring in guest workers.

This plane would be ideal for that purpose.

[blam]

"Deck it out inside and make a passenger model where each passenger can bring 1000 pounds of cargo with them when they fly."

LOL. Bring your wife too.(ahem)

[MediaMole]

Boeing already has the civilian BC-17 on their website.

The only question is how many customers want a $200 million short field cargo jet.