Boeing's at-risk C-17 line will get another small boost, this time in the form of a two-plane order from Qatar.
The purchase marks Qatar's first from a U.S. defense contractor and the C-17 Globemaster III's first Middle Eastern customer.
The planes will be delivered in the summer of 2009, according to Boeing execs, who would not disclose an amount on the deal.
"Our customer has asked us not to talk numbers," said John Williamson, spokesman for Boeing's mobility programs.
The U.S. Air Force - which already maintains a presence in Qatar - will provide logistics support under a separate contract.
The Qatar Armed Forces will be the fourth country to join the C-17 family, following Australia, Canada and the United Kingdom. It is the first country, however, to cite the C-17's abilities in humanitarian aid missions as a major selling point for the massive cargo lifter.
The Globemaster III is equipped for long-haul flights and was designed to land on short, unimproved runways when necessary.
Boeing is drawing close to wrapping up delivery of the U.S. Air Force's 190-plane C-17 order. Twice now, Boeing has had to tell C-17 parts suppliers that orders were coming to an end due to the lack of additional planes in the U.S. Air Force's budget; both times, Congress came to the rescue with billions of unrequested dollars. But letters flew back and forth between Capitol Hill and the Pentagon as 2007 drew to a close, with members declaring such maneuvering could not continue.
Last summer, Boeing decided to revive the line on its own dime, betting on more U.S. orders in the near future and that NATO would soon lock down a deal for its three planes. Congress continues to grudgingly come through, so orders are trickling in for now, but the NATO deal still awaits two signatories, Boeing execs said at the Farnborough International Air Show.
"Any orders are helpful," Williamson said of the Qatari deal. "But let's face it: the long-term viability of the C-17 line is dependent on consistent U.S. orders."
Analysts say that while the deal is a "notable market development," on its own, it's not enough to bolster the fading production line.
"It's an unexpected development. Suddenly there's an international market for strategic lift. There didn't used to be," said Richard Aboulafia of the Fairfax., Va.-based Teal Group.
While on their own, two planes for Qatar isn't much, he said, but exports in aggregate - six for the U.K., four each for Canada and Australia and now two for Qatar - reduce the number the U.S. Air Force has to commit to for the line to keep running. It also establishes a foothold for Boeing in a relatively new market, Aboulafia said.
Boeing will, however, have competition, in the form of perennial commercial adversary and tanker foe Airbus. EADS, the parent company to Airbus, has already introduced the Gulf region to the Airbus Military A400M cargo lifter and intends to bring the turboprop to the United States within the next decade.
"There is a substantial lift requirement in the Middle East, but the A400M people have been very active over there, and there has been a shift toward European aircraft," Aboulafia said.
E-mail: gputrich@defensenews.com.
The Army's Future Combat Systems (FCS) program is ready to test a few components that soldiers may have in their hands by 2010.
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