Select Committee on Defence Written Evidence


Memorandum from The Boeing Company

  In response to the House of Commons Defence Select Committee's request for evidence regarding its inquiry into Strategic Lift, The Boeing Company is pleased to submit the following evidence. In this document Boeing provides information about: the Boeing Company; Boeing Integrated Defense Systems; Boeing's C-17 Globemaster III programme; and of the status of the programme as of April 2007.

GENERAL INFORMATION

  1.  Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft, with capabilities in rotorcraft, electronic and defence systems, missiles, satellites, launch vehicles and advanced information and communication systems. Our reach extends to customers in 145 countries around the world, and we are the number one US exporter in terms of sales. Headquartered in Chicago, Illinois, USA, Boeing employs more than 153,000 people in more than 67 countries.

  2.  Boeing has a long standing relationship with the UK dating back almost 70 years and today the UK remains a critically important market for the company, as a supplier base and a source for technology partners. Boeing's annual spend in the aerospace industry supports thousands of jobs around the UK, in the process generating intellectual property and facilitating exports.

  3.  Boeing sources more from the UK than from any other country in the world, except the USA. In 2005, the company bought more than $1billion of services and materials from around 300 UK suppliers. There are currently more than 600 Boeing UK employees, in locations from Glasgow to Dorset.

BOEING INTEGRATED DEFENSE SYSTEMS

  4.  Boeing Integrated Defense Systems combines weapons and aircraft capabilities, intelligence and surveillance systems, communications architectures and extensive large-scale integration expertise across three business profit and loss centers. A $32.4 billion business with 72,000 employees worldwide, Boeing Integrated Defense Systems' strategy is to understand the enduring needs of customers and provide capability-based solutions to meet their rapidly evolving requirements. The strategy includes understanding the art of using current and emerging technologies to improve the capabilities of existing products and delivering new solutions.

  5.  The UK is a critically important market for the Integrated Defense Systems (IDS) business of The Boeing Company, as a supplier base and a source for technology partners. IDS continues to grow its extensive partnership operations with the best of British industry to bring best value solutions to the MoD and other governments around the world.

BOEING C-17 GLOBEMASTER III

  6.  A Nation's Strategic Airlift Capability is an essential linchpin in their National Security Strategy to conduct operations. Airlift delivers the Global Reach that allows the United Kingdom to deploy and sustain forces globally to meet their security interests whenever and wherever necessary. The Boeing C-17 Globemaster III is designed to fulfill military and humanitarian airlift needs well into the 21st century. A high-wing, four-engine, T-tailed aircraft with a rear-loading ramp, the C-17 can carry large combat equipment and troops or humanitarian aid across international distances directly to small austere airfields anywhere in the world. With a payload of 160,000 pounds, the C-17 can take off from a 6,700-foot airfield, fly 2,400 nautical miles, and land on a small, austere airfield in 3,000 feet or less. The C-17 is equipped with an externally blown flap system that allows a steep, low-speed final approach and low-landing speeds for routine short-field landings.

C-17 STATUS (APRIL 2007)

  7.  The Boeing C-17 Globemaster III is the Royal Air Force's most reliable and capable airlift aircraft, and currently flies at a rate well above its original planned usage. As the United Kingdom enters its sixth year of fighting terrorism around the world, the C-17 stands out for its proven record as the RAF's true workhorse in both combat and humanitarian relief missions. In current operations, the C-17 has a proven capability of delivering more cargo, troops and supplies than any other UK aircraft.

  8.  Boeing is currently on contract for 190 C-17s with the US Government, of which 164 have been delivered to date. In addition, Boeing is on contract for four aircraft to Australia, four aircraft to Canada, and four aircraft leased to the UK, where the purchase option has been exercised, and the purchase of one additional UK C-17 aircraft. A Letter of Intent (LOI) has been received from NATO for three- four aircraft, but it is unlikely that NATO will be on contract before later in 2007.

  9.  The United States Department of Defense (DoD) did not request funding for additional C-17s in their Fiscal Year 2008 budget. Boeing and its suppliers have been spending their own resources since late last year to protect the option for production of additional C-17s. However, based on the 34 month lead time necessary to build a C-17, and in the absence of any US Government commitment to procure additional C-17s in the future, Boeing directed its suppliers on 2 March 2007 to stop work on aircraft beyond current customer commitments. As a result, the C-17 supply base will start to shut down later this year and significant workforce reductions will begin in early Calendar Year 2008 as the production line heads towards complete shutdown in mid Calendar Year 2009.

CONCLUSION

  10.  The UK remains an extremely important market for the Boeing Company, as a supplier base and a source for technology partners. Boeing currently works with the UK Ministry of Defence across a range of programmes and the company looks forward to building on this relationship in the future. The Boeing Company has a strong desire to continue to provide a reliable and capable airlift aircraft to the Royal Air Force.

17 April 2007





 
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