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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