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RAF C-17
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In 2000 the UK’s Ministry of Defence (MoD) signed a 7-year ‘lease-and-support’ agreement with Boeing and the United States Air Force for the use of 4 Boeing C-17 Globemaster IIIs (three + one “active reserve”) for the period 2001 – 2007, with an option for a possible extension to 9 years. Although it has the ability to operate from unprepared strips, the RAF uses it purely as a strategic transport aircraft to established bases. The C-17 made its RAF operational debut during the Afghanistan conflict in 2001.

Instead of extending the lease, a deal struck with Boeing in 2006 saw the UK buy all 4 aircraft outright. That deal will also add a 5th aircraft to the RAF C-17 fleet when it enters service in 2008, alongside its compatriots at RAF Brize Norton in Oxfordshire. Now concerns about late A400M delivery, and front-line operational needs, have led the addition of a 6th aircraft via an additional contract, and now, a delivery…

Contracts & Key Events

RAF at Kandahar
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June 11/08: Boeing delivers the United Kingdom’s 6th C-17 Globemaster III to the Royal Air Force (RAF) today during a ceremony at the company’s Long Beach, CA manufacturing facility. Boeing announced that there are now 173 C-17s delivered to the USAF, 6 to the British RAF, and 4 each to Australia’s RAAF and the Canadian Forces. Total: 187.

This completes all current orders outside the USA, though Boeing uses the term “completes the RAF’s initial order…” in its release. Basic optimism hoping for another tack-on British sale or two, or something more? Boeing release.

Dec 3/07: Intent is converted into a contract. The purchase of a 6th C-17 Globemaster transport aircraft is announced by the new Minister for Defence Equipment and Support, Baroness Taylor. The C-17 will be purchased through a GBP 130 million (about $263 million) contract with the Boeing Company. UK MoD release.

Sept 25/07: Boeing announces a “major join” milestone C-17 final assembly facility with a “major join” ceremony for the United Kingdom’s 5th C-17 Globemaster III. Major join is when the airlifter’s 4 major fuselage sections (the forward, center and aft fuselages and wing assembly) are joined together into one structure.

Factory rollout for UK’s 5th C-17 is scheduled for December 2007, with first flight set for January 2008 and delivery tentatively scheduled for early 2008. Boeing release.

July 26/07: Defence Secretary Des Brown announces Britain’s intent to purchase a 6th C-17 in a Written Ministerial Statement to Parliament. The new C-17 aircraft will join the rest of the C-17 fleet at RAF Brize Norton in Oxfordshire when it enters service in late 2008/early 2009. UK MoD release.

Dec 28/06: Further British orders could depend on the C-17 production line’s health. The Times reports that:

“As fears grow that the delivery schedule for Airbus’ rival transport aircraft will slip further, The Times has learnt that the MoD is planning to buy three Boeing C17 Globemaster IIIs for about $660 million (GBP 337 million). But its plans are threatened by the potential closure of the C17 production line in the United States.

The Royal Air Force wants the additional C17s because it is understood to be impressed by its existing fleet and concerned about the delivery schedule for the Airbus 400M….”

Aug 4/06: The UK announces that under a deal struck with Boeing, saw the UK buy all 4 aircraft outright, and add a 5th to the RAF C-17 fleet at RAF Brize Norton in Oxfordshire when it enters service in 2008.

The Canadian CASR think-tank prices the 2000 lease deal at about $750 million for the lease and $400 million for support arrangements (maintenance, training, services etc), for a total cost of $1.15 billion. Based on recent aircraft-only sale figures for Australia, the current price of a C-17 is about $195 million, owing to special deals from Boeing. Many lease-to-own agreements will also put the lease price toward the final purchase, and if this is so here then the likely cost to Britain for this C-17 deal is about $250 – 350 million after offsets are applied, depending on how the purchase price of the 4 existing C-17s is figured.

Support costs under the global C-17 Sustainment Partnership would of course be extra.

August 2006 Addendum: The Great C-17 Buying Push

Join the crowd!
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Boeing is making a significant push to sign new C-17 customers in order to keep its production lines open past 2008; the US military professes a position whereby the cut-down fleet of 180 is sufficient, and proposes to stop funding additional purchases beyond that. Recent C-17 buys by Australia (4), Britain (1), and probably Canada (4-6) will help some, filling out the rest of the 2008 production schedule and possibly extending it into early 2009. Sweden may also want 2-3 aircraft, and and there has been some talk of NATO leasing 4 as a pooled asset like the super-giant AN-124s under SALIS [DID: that deal went through].

Ultimately, however, keeping the production lines open past 2009 is going to require additional purchases by the US military, probably at the insistence of Congress via hard lobbying and supplemental “earmark” legislation. See all of DID’s C-17 related coverage for more.

Additional Readings

• UK MoD (Nov 29/07) – RAF’s biggest transport aircraft gets the goods to Afghanistan. good description of the next steps and support systems required after the aircraft lands.