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WASHINGTON: Boeing Co. has been awarded a $2 billion fixed-price contract for 10 C-17 transport aircraft added by Congress to the Air Force's budget for fiscal 2007, which began on Oct. 1, the Pentagon said on Monday.
The 10 airplanes come in addition to 180 already ordered by the Air Force, and will be completed by October 2009, the Defense Department said in its daily contract announcement.
The Air Force, citing budget constraints and the need to begin replacing aging refueling tankers, had decided to cap total purchases of C-17s at 180, ending production in 2008.
But high usage of the planes in Iraq and Afghanistan and concern about the impact of shutting the production line, prompted lawmakers to add 10 more to the 2007 budget.
Boeing welcomed news of the contract and said it would work closely with the Air Force to finalize its terms.
“Congressional funding of these aircraft is a significant endorsement of the C-17's vital role in fighting the global war on terrorism and in providing humanitarian relief at home and around the world,” said spokeswoman Kerry Gildea.
Gildea said the aircraft were already factored into Boeing's C-17 production plan. Coupled with recent international C-17 orders and commitments, the new Air Force order would keep Boeing's C-17 production line in Long Beach, California running until late 2009, she said.
Company executives have already urged the Air Force to buy 12 more C-17s beginning in fiscal 2008 to avoid a future gap in the plane's production line.
The decision by U.S. lawmakers to add 10 more airplanes in 2007 came after Boeing spent tens of millions of dollars of its own money to keep the line going and keep suppliers on board.
Production briefly shut down in August and work was halted on four planes before Congress added the new aircraft.
