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Boeing bids adieu to C-17 cargo plane
Los Angeles: Boeing said on Friday it will begin shutting down production of its C-17 cargo plane, the last to be built in Southern California, because Congress has not funded new purchases.
The decision could affect thousands of Boeing workers in four states and thousands of others employed by companies that supply parts for the C-17. The Chicago-based company said it has told its suppliers and subcontractors to stop work on planes beyond those already on order. Boeing said it has enough orders to continue production through the middle of 2009.
The company has spent millions to keep its supply line active, in hopes that Congress would authorise new purchases. But on Friday, Boeing said it could no longer afford to keep the programme going.
“The C-17 is one of the Defense Department’s most successful acquisition programmes ever,’’ said Ron Marcotte, V-P of Boeing Global Mobility Systems. “But we can’t continue carrying the programme without additional orders from US government.”
The decision affects long lead-time items purchased from suppliers, many of which have to be ordered as long as 34 months in advance. It left open the possibility to continue production if it receives new orders. “This move will be the first step in an orderly shutdown of production supply chain, should no further orders be received from the US government,’’ Boeing said.
The move could ultimately affect 5,500 Boeing employees in California, Missouri, Georgia and Arizona who are directly tied to the C-17 programme. Thousands more work to support existing planes. But the decision will first hit the 25,000 employees of nearly 700 firms in 42 states that supply parts and systems for the plane, Boeing said.
The plane, nicknamed Globemaster III, has been used since 1991 to airlift heavy equipment and transport troops. Its ability to land on short dirt runways has helped take the load off supply trucks that come under heavy fire in Iraq and Afghanistan.
The C-17 plant is the last major airplane factory left in Southern California, which once was a centre for aircraft production. Earlier this year, Boeing delivered its last 717 passenger jet, also built in Long Beach. AP
TURBULENCE AHEAD: Boeing’s decision to ring down curtains on the C-17 cargo aircraft will ultimately affect 5,500 employees in California, Missouri, Georgia and Arizona, in addition to around 25,000 employees of the nearly 700 firms that supply parts and systems for the plane
Los Angeles: Boeing said on Friday it will begin shutting down production of its C-17 cargo plane, the last to be built in Southern California, because Congress has not funded new purchases.
The decision could affect thousands of Boeing workers in four states and thousands of others employed by companies that supply parts for the C-17. The Chicago-based company said it has told its suppliers and subcontractors to stop work on planes beyond those already on order. Boeing said it has enough orders to continue production through the middle of 2009.
The company has spent millions to keep its supply line active, in hopes that Congress would authorise new purchases. But on Friday, Boeing said it could no longer afford to keep the programme going.
“The C-17 is one of the Defense Department’s most successful acquisition programmes ever,’’ said Ron Marcotte, V-P of Boeing Global Mobility Systems. “But we can’t continue carrying the programme without additional orders from US government.”
The decision affects long lead-time items purchased from suppliers, many of which have to be ordered as long as 34 months in advance. It left open the possibility to continue production if it receives new orders. “This move will be the first step in an orderly shutdown of production supply chain, should no further orders be received from the US government,’’ Boeing said.
The move could ultimately affect 5,500 Boeing employees in California, Missouri, Georgia and Arizona who are directly tied to the C-17 programme. Thousands more work to support existing planes. But the decision will first hit the 25,000 employees of nearly 700 firms in 42 states that supply parts and systems for the plane, Boeing said.
The plane, nicknamed Globemaster III, has been used since 1991 to airlift heavy equipment and transport troops. Its ability to land on short dirt runways has helped take the load off supply trucks that come under heavy fire in Iraq and Afghanistan.
The C-17 plant is the last major airplane factory left in Southern California, which once was a centre for aircraft production. Earlier this year, Boeing delivered its last 717 passenger jet, also built in Long Beach. AP
TURBULENCE AHEAD: Boeing’s decision to ring down curtains on the C-17 cargo aircraft will ultimately affect 5,500 employees in California, Missouri, Georgia and Arizona, in addition to around 25,000 employees of the nearly 700 firms that supply parts and systems for the plane
