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Boeing: South America may purchase “the latest model of the C-17”

Versión en castellano

Art by Javo Ruberto based on a Martín Kubo photo.

(2 September 2010) Joseph T. McAndrew, Vice President, International Business Development, Europe, Israel and the Americas, was first quoted in late March 2010 as proposing the consortium concept to several air forces so as to improve marketability for C-17 cargo aircraft and CH-47 cargo helicopters in the region. The proposal was purportedly shaped following the successful Strategic Airlift Capability (SAC) initiative launched by 12 NATO nations for the joint acquisition and operation of three Globemaster III aircraft from Papa, Hungary.

Furthermore, the project is believed to be destined to be integrated into the Globemaster III Sustainability Partnership (GSP) now providing technical and logistic support to the global C-17 fleet flying from the USA, the UK, Australia, Canada, NATO, Qatar and, soon, the United Arab Emirates. Hoping to gain additional insight into the proposal and its present status, Aeromilitaria Argentina sent a press questionnaire to Boeing with several follow up queries. Excerpts from Joe McAndrew’ replies…

Question: According to the Spanish web site, Infodefensa, you've been talking to several South American nations about the possible acquisition of C-17 cargo aircraft through a consortium-formula imitating NATO's Airlift Management Organisation. Did talks continue after FIDAE 2010 or was this simple talking matters during the South American trade show?

Answer: Discussions on the C-17 cargo procurement concept similar to the NATO-led Strategic Airlift Capability (SAC) initiative continue with potential customers in the region.

Q: While the proposal is still "conceptual" and the response has been "hopeful", only Chile, Argentina and Brazil were identified as likely participants in the scheme. Can you identify additional prospective participants? Will the proposed scheme be restricted to South American nations or could it incorporate other Latin American and Caribbean nations?

A: The need for airlift in South America is growing and is evident by the recent disasters in Haiti and Chile. The consortium would, in large part, determine the participants and overall terms of their agreement.

Art by Javo Ruberto based on a Martín Kubo photo.

Q: Has Boeing estimated / calculated how many aircraft could be purchased by the proposed consortium? If simple maths say that it took 12 European nations to buy three aircraft, will the three candidates mentioned thus far represent only one aircraft or are there other factors involved that will increase the number of aircraft to be acquired?

A: The number of aircraft required will be determined by the requirements of each of the consortium's potential members.

Q: Even though they may not be in the same market category as the C-17, commercial competition (and a degree of political opposition) from Embraer's KC-390, Lockheed Martin's C-130J and Airbus' A400M should be expected. Do you agree that the C-17 will be competing with those or other cargo aircraft if this deal is to succeed? Which could be the Globemaster III competitive advantage over such competition?

A: The C-17 is an unmatched airlift capability that is best value for customers as the airplane does it all in both tactical and strategic arenas. The C-17's strategic and tactical ability take off from and land on a 3000-ft small unpaved or paved airfield in day or night make it a premier transporter for military, humanitarian and peacekeeping missions. This sets the C-17 apart from the competition.

Q: Should this scheme proceed as proposed, will Boeing be readily available to provide some form of financing?

A: This will be determined by the requirements of the consortium and whether they choose to procure these through a Direct Commercial Sale or a Foreign Military Sale.

Q: The consortium or "time-sharing" scheme seems fair and efficient for peace time flying operations. But, how will this scheme fare in war time? Will Boeing impose contractual, insurance or political restrictions to the operation of these aircraft in actual combat situations? Which was your experience with the NATO aircraft?

A: Once a C-17 sale is approved and Boeing puts the Program together its makes no difference whether its peace or wartime. Boeing will be there to support our customers.

Art by Javo Ruberto based on a Martín Kubo photo.

Q: Given the present political climate in the Americas, where so many nations appear to be breaking away from their previous Washington political alignment, will the US government back-up the type of deal proposed (and the aircraft type offered) by Boeing? Or will it insist in only supplying the region with refurbished second-hand material retrieved from Arizona storage facilities?

A: A South American consortium would receive the latest model of the C-17 with all of the most recent upgrades.

Q: Can you provide us with some acquisition cost projections? How much funding will it be required to purchase (say) three C-17s for a "South American SAC"?

A: A South American consortium would pay the same rate the U.S. Air Force contracts for C-17s. The price, which Boeing does not disclose, is based on capabilities and support systems required by the customer.

Q: Will they be eligible to participate in the Globemaster III Sustainability Partnership? Which could be the cost of participating in said support alliance?

A: All C-17 customers to date have participated in the Globemaster Sustainment Partnership (GSP) program and would be anticipated this consortium would elect to as well. The cost is negotiated between USAF, Boeing and the customer and is not disclosed publicly. There is an economy of scale gained from the Globemaster III Sustainment Partnership. Spare parts are manufactured and purchased more economically for a fleet of more than 200 air planes for the US and international customers. In addition, all forecasting for parts and repairs is performed using a centralized database that analyzes data from the entire "virtual" fleet of C-17s.

E-mail interview by Carlos Ay. J. Ruberto and M. Kubo contributed with images and illustrations. Additionally, we checked Airliners, Boeing and Infodefensa.