Sunday, March 04, 2007
Boeing takes step to shut down C-17 production
WASHINGTON: Boeing Co is taking the first step to end production of its C-17 military cargo plane in 2009 due to lack of interest from the US government and no new orders from overseas, the company said on Friday.
Boeing has notified suppliers it will no longer buy parts for the four-engine jet not under contract or firmly committed, and will begin significant work force reductions in early 2008 if there is no new business.
Boeing has been lobbying Congress to continue production. ââ¬ÅBoeing needed a commitment now to avoid a break in production,ââ¬Â the company said.
The Defense Department did not request new funding for the plane in its budget for the fiscal year that begins Oct 1 and Boeing said interest from potential international customers is ââ¬Åsignificantly less than it was a year ago.ââ¬Â
ââ¬ÅWithout (Defense Department) or international customer commitments, weââ¬â¢re compelled to take this regrettable but necessary action,ââ¬Â Dave Bowman, Boeingââ¬â¢s C-17 program manager, said in a statement.
Boeing made a similar announcement in August and said it planned to shut down the C-17 production line in mid-2009 without new orders. The company stuck with that deadline in Fridayââ¬â¢s announcement.
More than 7,000 jobs are at stake in California, Missouri, Georgia and Arizona, the company said. Boeing said again it was assessing the potential financial impact of ending C-17 production and may incur costs beyond those that would be recoverable from the government.
The aircraft costs about $200 million and is designed to carry large equipment and troops to hard-to-reach airfields. It has been in service since the 1990s. It is one of Boeingââ¬â¢s most significant projects, bringing in about $3 billion in annual revenue.
http://www.dailytimes.com.pk/default.asp?page=2007\03\04\story_4-3-2007_pg5_27
Boeing takes step to shut down C-17 production
WASHINGTON: Boeing Co is taking the first step to end production of its C-17 military cargo plane in 2009 due to lack of interest from the US government and no new orders from overseas, the company said on Friday.
Boeing has notified suppliers it will no longer buy parts for the four-engine jet not under contract or firmly committed, and will begin significant work force reductions in early 2008 if there is no new business.
Boeing has been lobbying Congress to continue production. ââ¬ÅBoeing needed a commitment now to avoid a break in production,ââ¬Â the company said.
The Defense Department did not request new funding for the plane in its budget for the fiscal year that begins Oct 1 and Boeing said interest from potential international customers is ââ¬Åsignificantly less than it was a year ago.ââ¬Â
ââ¬ÅWithout (Defense Department) or international customer commitments, weââ¬â¢re compelled to take this regrettable but necessary action,ââ¬Â Dave Bowman, Boeingââ¬â¢s C-17 program manager, said in a statement.
Boeing made a similar announcement in August and said it planned to shut down the C-17 production line in mid-2009 without new orders. The company stuck with that deadline in Fridayââ¬â¢s announcement.
More than 7,000 jobs are at stake in California, Missouri, Georgia and Arizona, the company said. Boeing said again it was assessing the potential financial impact of ending C-17 production and may incur costs beyond those that would be recoverable from the government.
The aircraft costs about $200 million and is designed to carry large equipment and troops to hard-to-reach airfields. It has been in service since the 1990s. It is one of Boeingââ¬â¢s most significant projects, bringing in about $3 billion in annual revenue.
http://www.dailytimes.com.pk/default.asp?page=2007\03\04\story_4-3-2007_pg5_27
