Support and upkeep of world C-17 fleet continues through Boeing’s Globemaster III Integrated Sustainment Program
- Production continues at 10 C-17s per year for 22 additional new aircraft
- Boeing’s 2013 financial guidance unchanged
Boeing will complete production of the C-17 Globemaster III and shut the C-17 final assembly facility in Long Beach, Calif. in 2015.
“Ending C-17 production was an extraordinarily difficult but necessary decision,” said Dennis Muilenburg, president and chief executive officer of Boeing Defense, Space & Security. “We need to thank the highly skilled and talented employees who’ve built this great airlifter for greater than twenty years- and those that might be useful us as we continue to construct the remainder 22 aircraft and support and modernize the worldwide fleet for many years to come back. The C-17 remains the world’s most capable airlifter with unmatched readiness and value effectiveness.”
Boeing will continue after-delivery support of the global C-17 fleet as element of the C-17 Globemaster III Integrated Sustainment Program (GISP) Performance-Based Logistics agreement. The GISP “virtual fleet” arrangement provides the best airlift mission-capable rate at some of the lowest costs per flying hour.
“Our customers all over face very tough budget environments. While the need for the C-17′s capabilities is high, budgets cannot support additional purchases within the timing required to maintain the production line open,” Muilenburg added. “What’s more, here within the Us of a the sequestration situation has created significant planning difficulties for our customers and all the aerospace industry. Such uncertainty forces difficult decisions like this C-17 line closure. We are going to continue to make tough but necessary decisions to drive affordability and preserve our ability to take a position for the longer term.”
Boeing expects a charge of under $100 million, with a purpose to be recorded this quarter, by reason of this announcement. The charge should not impact financial guidance for the year.
Nearly 3,000 employees support the C-17 production program in Long Beach; Macon, Ga.; Mesa, Ariz. and St. Louis. Workforce reductions will begin in early 2014 and continue through closure. Boeing will provide employee assistance including job search resources, financial counseling, retirement seminars and help locating potential jobs within and outdoors of the corporate.
“We recognize how closing the C-17 line will affect the lives of the boys and ladies who work here, and we will be able to do everything possible to help our employees, their families and our community,” said Nan Bouchard, vice chairman and C-17 program manager.
Additionally, the C-17 industrial team includes greater than 650 suppliers in 44 states. Boeing and its suppliers provide 20,000 jobs in support of C-17 production.
Since the primary flight on Sept. 15, 1991, the C-17 has amassed greater than 2.6 million flying hours supporting airlift of troops and enormous cargo, precision airdrop of humanitarian supplies and lifesaving aeromedical missions. Boeing has delivered 257 C-17s, including 223 to the U.S. Air Force, and a complete of 34 to Australia, Canada, India, Qatar, the United Arab Emirates, the uk and the 12-member Strategic Airlift Capability initiative of NATO and Partnership for Peace nations.
Boeing have been part of California and its rich aerospace legacy for greater than 90 years. Today it occupies a diversified portfolio including commercial aviation; the most important satellite design and manufacturing factory on the planet, and new markets corresponding to cyber security. Boeing has approximately 20,000 employees in California and remains committed to defense and commercial business within the state.
A unit of The Boeing Company, Boeing Defense, Space & Security is among the world’s largest defense, space and security businesses that specialize in innovative and capabilities-driven customer solutions, and the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Boeing Defense, Space & Security is a $33 billion business with 59,000 employees worldwide.
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