Interest Revives But Assembly Lines Closed, Plant For Sale

Following the latest Paris Air Show, Boeing announced it is evaluating the possibility of restarting production of its giant C-17 Globemaster III strategic airlift platform ten years after the last one was delivered to the U.S. Air Force.

The company confirmed it is in the very early stage of discussions with an unnamed potential buyer, with Torbjorn Sjogren, current Vice President and General Manager of Boeing Global Services – Government Services, saying, “It’s an extraordinary effort (referring to restarting aircraft production), but as a reflection of the aircraft’s utility, it’s something we’re currently considering with one particular country that has raised the possibility.”

Boeing is reportedly very interested in opportunities in the European market, where some countries are discussing rearmament plans in view of the renewed threat posed by Russian aggression. The statement by Sjogren underscores the growing interest. In addition, there is interest from countries who failed to place orders before production was halted.

Boeing faces a significant–but not insurmountable–challenge in that the production lines have been shut down for so long and the Long Beach factory is closed and up for sale. However, some of the equipment and assembly lines might be salvageable and able to be relocated. On the plus side, should deals materialize and the company reopens production, it would be a significant financial boost to the company’s ledger.

Why did Boeing discontinue production of one of the largest cargo haulers in the world? The very simple answer is that demand evaporated. The Air Force operates the lion’s share of the current fleet, 223 of the estimated 275 still in service globally. In its 2010 budget, the Department of Defense said laconically, "DOD does not need additional C-17 aircraft. Therefore we are ending production under this program."

In addition to the Air Force, the others operating the C-17 include Australia, Canada, India, Qatar, Kuwait, the UAE, the UK, and NATO. All of the operational Globemasters are being supported under the Globemaster II Integrated Sustainment program that provides for long-term maintenance and support for the heavy strategic lift aircraft.

FMI:  www.boeing.com/