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1 Al Baker C-17 Business Development October 2012 C-17 Program Update for the Aerospace & Defense Forum Group Boeing Defense, Space & Security Copyright.

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Presentation on theme: "1 Al Baker C-17 Business Development October 2012 C-17 Program Update for the Aerospace & Defense Forum Group Boeing Defense, Space & Security Copyright."— Presentation transcript:

1 1 Al Baker C-17 Business Development October 2012 C-17 Program Update for the Aerospace & Defense Forum Group Boeing Defense, Space & Security Copyright © 2012 Boeing. All rights reserved.

2 2 Unique C-17 Capability: Responsive Power Projection Delivers big and heavy cargo into short runways dirt runways small ramps or narrow parking slots throughand/or Reduces manpower: 3-person aircrew; requires less maintenance and is easier to fix Direct delivers over intercontinental distances into small austere airfields Carries patients to medical treatment The Worlds Only Strategic and Tactical Airlifter

3 3 E X C E E D I N G E X PE C T A T I O N S Excellent Quality Ahead of Schedule On Price Worldwide Operations 218 USAF Aircraft – 12 Bases 8 UK C-17s Delivered 5 of 6 Australian C-17s Delivered 4 Canadian C-17s Delivered 3 Qatar C-17s Delivered 3 SAC C-17s Delivered 6 UAE C-17s Delivered 10 India C-17s on Contract A High Performance Program Over 2.4 Million Flight Hours – Best Fleet Reliability M E E T I N G O U R C O M M I T M E N T S

4 4 Whats Changed in the C-17 Market FY12 DAB contained funding for 1 C-17 to replace aircraft lost at Elmendorf AFB in 2010 Continued international market interest, but timing for securing additional orders uncertain C-5A / C-17 replacement finally underway Stood up WPAFB & Stewart ANGB in 2011 USAF planning stand up of Memphis (FY13) and Martinsburg (FY15) Plan retires all C-5As by FY17 Joint Future Theater Lift / C-130 recap and Global Airlifter (C-X) slipping to right Current Environment Presents Obstacles to Keeping C-17 Sold

5 5 C-17 Aircraft Delivery Plan LOT 26 Begins LL FUNDS LOT 27 Begins LL FUNDS UK8 UE6 AT6 | India AircraftAvailable AircraftUAE AircraftOther Intl AircraftAustralia AircraftUSAF AircraftUK Aircraft P-223 IN-1 | C-17 Shutdown = Lost Opportunities LOT 28 Begins LL FUNDS 59 C-5As || Potential Opportunities: Intl markets – Saudi Arabia, Kuwait, UK, India, UAE, Canada, others C-5 fleet replacement Future theater airlift recapitalization

6 6 C-17 Potential Markets Saudi Arabia India UAE Aggressively Pursuing C-5A Conversion and International Opportunities Kuwait Wright Patt AFB, OH 2011 Wright Patt AFB, OH 2011 Stewart ANGB, NY 2011 Stewart ANGB, NY 2011 Memphis IAP, TN 2013 Memphis IAP, TN 2013 Martinsburg, WV 2015 Martinsburg, WV 2015 UK Australia C-5A Conversion Bases Canada Qatar

7 7 C-17 Roadmap to the Future 224 aircraft on order for USAF 223 to be delivered to USAF 1 aircraft contributed to NATO/SAC Promising international sales 28 of 40 aircraft delivered C-17FE is strong contender for C-130 replacement Greater than 25% more fuel efficient than C-17A Shares 80% parts commonality with C-17A Low development and production risk with proven technologies Current Campaigns C-17 Fuel Efficient USAF has initiated C-5A replacement with C-17s at ANG and AF Reserve bases in Strong business case to eventually replace all remaining C-5As with C-17s C-5A Replacement C-17AC-17FE Next Gen Airlifter

8 8 Impact of C-17 Shutdown on U.S. Industrial Base C-17 program supports more than 30,000 direct jobs with more than 650 suppliers in 44 states and provides approximately $5.8 Billion in total annual economic impact C-17 program supports more than 30,000 direct jobs with more than 650 suppliers in 44 states and provides approximately $5.8 Billion in total annual economic impact Cost of future transport aircraft will increase Future airlift platform innovation will suffer Critical skills in engineering, development and production will atrophy U.S. industrial bases sufficiency and reliability likely to erode during times of crisis U.S. will be forced to rely on international sourcing for future airlift needs U.S. in danger of losing its position as the leader in aerospace

9 9 C-17 Program Status Additional C-17s will address growing international airlift needs, mitigate the risk of aging C-5A and C-130 fleets, preserve an affordable solution to future airlift requirements, and sustain the US industrial base Additional C-17s will address growing international airlift needs, mitigate the risk of aging C-5A and C-130 fleets, preserve an affordable solution to future airlift requirements, and sustain the US industrial base C-17 production reduced from 15/yr to 10/yr to extend the line and preserve an affordable option to meet US and international airlift needs Boeing is aggressively pursuing C-17 international sales to fill production line positions, but timing and small quantities make this difficult USAF help will be needed to get international orders on contract expeditiously and to accommodate training requirements A hot C-17 production line gives the USAF cost-effective options to recapitalize its aging C-5A and C-130 fleets C-17 is last large military aircraft production facility – its continuation is critical to US industrial base

10 10 What you stand to lose: Last US location to manufacture large military aircraft Honed and skilled workforce Over 10,000 jobs at over 350 companies in California $1.7B annual economic impact to the state Demise of the SoCal Aerospace Industry FY13 Presidents Budget Contains No Orders for C-17s DC-10 / KC-10 / MD Lockheed L-1011 Tristar Lockheed F Northrop Grumman B DC-9 / MD-80 / MD-90 / B Space Shuttle B-1 Bomber Delta Rockets

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