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C-17 vs. AN-124
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The long-range C-17 Globemaster III heavy transport aircraft remains the backbone of US Air Mobility Command inter-theater transport around the world, and its ability to operate from shorter and rougher runways has made it especially useful during the Global War on Terror. Recent buys by Australia, Britain, and Canada have broadened the plane’s its global use. Now NATO, who has relied on the SALIS arrangement and its leased super-giant AN-124s from Russia, is looking to buy and own 3 C-17s as NATO pooled assets with multinational crews. Participating countries will receive allocated flight hours relative to their participation (a Dutch MvD release says they expect 500 flight hours per year for EUR 10-15 million per year over 30 years), and thus far they include 12 nations: Bulgaria, Estonia, Finland, Hungary, Lithuania, the Netherlands, Norway, Poland, Romania, Slovenia, Sweden, and the United States.

This order will not materially change the coming shut-down of C-17 production, but it does look like the inauguration of a pool that will fill a gaping hole in Europe’s defense capabilities – its complete lack of heavy airlift. This article will cover NATO C-17 acquisition program, including its structure and ongoing announcements.

Program is now an adequate name, as NATO SAC has signed a contract; this article will soon become DII subscription-only content. Notable by its absence: Italy – as well as a number of other European countries, who are moving ahead with a parallel EU pool of Airbus A400Ms…

• The NATO C-17 Pool
• Contracts, Notifications & Key Events [updated]
• Additional Readings

The NATO C-17 Pool

Dutch PzH-2000 howitzer
headed to Afghanistan
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An international consortium made up of NATO allies is forming the NATO Strategic Airlift Capability (NSAC) consortium; the ownership entity will be a chartered NATO Weapon System Partnership (WSP) of allied nations, and the NATO Maintenance and Supply Agency (NAMSA) will administer the WSP. Many observers believe that this pool will probably expand as additional aircraft (probably Airbus A400Ms) roll off of future active production lines. Defense Aerospace has a pair of compilation articles with releases for the initial announcement.

The following NATO nations have been members of the NSAC initiative: Bulgaria, Czech Republic (not an MoU signatory), Denmark (dropped out), Estonia, Hungary, Italy (not an MoU signatory), Latvia (not an MoU signatory), Lithuania, Netherlands, Norway, Poland, Romania, Slovakia (not an MoU signatory), Slovenia, and the United States. Sweden and Finland, both Partnership for Peace Countries, are also SAC Members.

Membership in the airlift fleet remains open to other countries, upon unanimous agreement of the consortium members.

The C-17s will be configured to the same general standard as C-17s operated by the US and the UK Royal Air Forces, including night flying and air-to-air refueling capabilities (this means Block 17 standard, in all likelihood). The crews and maintenance personnel will be multinational, drawn from the participating countries and trained to the agreed mission profiles and standards. The planes may be used for whatever purpose the member countries desire, within their allocated flight hours.

The aircraft were originally slated to be based alongside American C-17s at Ramstein air base in Germany, but recent reports have them based at Papa Air Base in western Hungary instead. This would be a pure political decision, as Ramstein has already undergone significant NATO-funded infrastructure upgrades required to support operation of C-17s and other large aircraft. Acting as the NATO C-17 base would have qualified Ramstein for further NATO Security Investment program funding, however, and that is surely true of Papa in Hungary as well.

Under the current plans, NATO will buy 2 C-17s under Foreign Military Sales (FMS) through the NATO Airlift Management Agency. The USA will buy a 3rd aircraft. NAMA will also join the C-17 Globemaster III Sustainment Partnership, which provides support all in-service C-17s around the world. The first C-17 was originally scheduled to be delivered to NATO by the middle or end of 2007, but that was moved back to mid-2008, then to late 2008, and finally to Spring 2009.

Once deliveries begin, the goal is that additional planes would be delivered every 6 months. At first, all C-17s will be manned by American air crews. Other nations will contribute personnel for training, and within about 18 months the C-17 pool is expected to become a fully multinational operation like NATO’s existing E-3 AWACS pool.

The current plan is an initial operating capability by mid 2009, and full operating capability in 2009-2010.

Contracts, Notifications & Key Events

C-17, waiting
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March 13/09: Boeing announces the “major join” ceremony for the SAC consortium’s first C-17. During major join, the C-17 airlifter’s 4 major sections (forward/ center/ aft fuselages. and wing assembly) are put together.

The Italian Air Force will be inducting 4 Boeing KC-767 tanker/transports into the fleet, which will enhance some forms of strategic lift capability but does not solve heavy equipment lift issues. Leased Russian AN-124 aircraft under NATO’s SALIS program will remain the country’s main option, with a secondary option of trading flight hours involving its KC-767, C-130, and C-27J aircraft with other countries. NATO said it remained open for other members to join the SAC in the future, if conditions change.

Oct 1/08: The 12 participating nations complete the signature of the SAC Memorandum of Understanding (MOU), bringing the Charter of the NATO Airlift Management Organisation (NAMO) into force. Under the agreement with the U.S. Department of Defense and the NATO Airlift Management Agency, 2 of the aircraft will be purchased from Boeing by NAMA, while a 3rd aircraft will be provided by the U.S. Air Force.

A NATO Heavy Airlift Wing (HAW) will now be created, under the initial command of a US Air Force officer with a Swedish Deputy Commander, and eventually manned by international crews from the participating nations. The 1st aircraft is anticipated to be delivered in Spring 2009, and the 2nd and 3rd aircraft are expected to arrive at Papa AFB, Hungary in Summer 2009. NATO release | Boeing release.

Aug 8/08: Despite hopes for an agreement by he end of June, an American Forces Press Service article notes that the service is still “a few signatures away…” See also USAF release.

June 12/08: A NATO release states that the 15 SAC nations have agreed to purchase 3 C-17s. The DSCA request was only for 2 Globemasters, but it is generally believed that the USA will contribute 1 airplane.

The NATO announcement also confirmed that the USA, the Netherlands, and Slovenia have all signed the SAC Memorandum of Understanding, joining Bulgaria, Hungary, Lithuania and Sweden. Other SAC nations are expected to join the signatories by the end of June 2008.

May 9/08: The US DSCA notifies Congress [PDF format] that NATO’s Strategic Airlift Capability (including Finland and Sweden) wishes to purchase 2 Boeing C-17 Globemaster III aircraft with 4 Turbofan F117-PW-100 engines installed on each aircraft (8 total), AN/ALE-47 Counter-Measures Dispensing System (CMDS), AN/AAR-47 Missile Warning System, Government Furnished Equipment, spare and repairs parts, pyrotechnics, flares, other explosives, Global Positioning System security devices, crew armor, mission planning system software, COMSEC equipment and support, supply support, training equipment and support, publications and technical data, U.S. Government and contractor technical assistance and other related elements of logistics support. The estimated cost is $700 million.

This is a drop from the 4 C-17s in the December 2006 DSCA request, below, but it is also more money. The release adds that the 2 C-17s will partially serve NATO’s agreed military requirement for 8 “C-17 equivalents to rapidly deploy a force around the globe, including the NATO Response Force (NRF)”. One wonders what the other 6 C-17 equivalent aircraft will be. Meanwhile:

“The new NATO Airlift Management Organization (NAMO) will purchase, own, and manage the aircraft. A multinational military unit to be named the Heavy Airlift Wing (HAW) will conduct airlift operations…. NAMO has agreed to pursue basing the C-17s at Papa Air Base, in Hungary…. Papa AB has already undergone significant NATO-funded infrastructure upgrades required to support operation of C-17s and other large aircraft, and this capability will qualify Papa AB for further NATO Security Investment program funding.”

Key contractors are Boeing in Long Beach, CA and United Technologies Cooperation subsidiary Pratt & Whitney Military Engines in East Hartford, Connecticut. Additional subcontractors will also be involved via Boeing, who will also be responsible for establishing a facility at Papa AB to provide C-17 logistics support under the current Globemaster Support Partnership. The proposed plan will require approximately 7 of the personnel to be US citizens and 7 personnel to be local hires. Approximately 50 United States Air Force personnel will also be stationed with the SAC HAW at Papa AB, Hungary, and implementation of this proposed sale will require the participation of up to 10 each U.S. Government and contractor representatives for annual 2-week program management and technical reviews in Europe or the US.

April 4/08: Latvia’s Cabinet of Ministers (CoM) has issued a regulation that clears the way for participation in the NATO C-17 pool. Costs have gone up, as the Latvian Ministry of Defence release confirms:

“The MoD Budget 2008 has allotted 3.72 million lats [about $8.5 million] for the Latvian participation in the SAC programme. However, in accordance with the current estimations, the Latvian share of costs in 2008 will be 4,377,506 lats [about $10 million]; therefore, Amendment to Budget is required to increase the total amount of funds by at least 656,962 lats, so that Latvia can meet its liabilities set by the Memorandum of Understanding concluded in 2008.”

March 25/08: The Finnish government formally announces that it intends to join NATO’s C-17 pool, and other reports have Finland and Sweden undertaking a joint buy on behalf of the EU’s Nordic Battlegroup.

Finland’s Ministry of Defense has estimated its required usage to be 100 hours, while Sweden’s higher-pitched usage is estimated to be between 130 and 150 hours. Newsroom Finland | Defense News.

March 18/08: Sweden presents its associated bill in the Riksdag. The country’s stated flying time requirement of in 2006 was 550 flying hours per year, and they announce that the Swedish share of flying time over a 25 – 30 year period is estimated at a maximum of SEK 200 million (about $33.4 million) per year.

Swedish participation in the arrangement is conditional on approval by the Riksdag, and the C-17 pool will not enter into force until all participating countries have signed the agreement. Swedish MoD.

March 18/08: Sweden’s Aktuelt reports that Finland, who is not a formal member of the negotiating group but has been mentioned in conjunction with the C-17 pool, is also planning to become a member. YLE news | SVT news (Swedish).

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October 2007: Denmark withdraws from the program, citing cost factors.

June 19/07: NATO finally agrees to set up a NATO Airlift Management Organization (NAMO) and NATO Airlift Management Agency (NAMA) to acquire and support the C-17s. The SAC plans to acquire 3-4 C-17s, and announces that the first is expected to be delivered in mid-2008. This is almost a year later than the expected date given when the original decision was made in September 2006. NATO release.

Dec 7/06: The US DSCA notified Congress [PDF format] that NATO wished to purchase a set of equipment and support related to its purchase of 4 C-17s. The cost, if all options are exercised, could be as high as $589 million. This proposed sale includes up to:

• 2 spare Pratt & Whitney F117-PW-100 engines
• 4 AN/AAQ-24V(13) Large Aircraft Infrared Countermeasures (LAIRCM) Systems
• 15 AN/AVS-9 Night Vision Goggles
• Electronic Combat International Security Assistance Program software equipment
• Plus spare and repair parts, mission planning system and software, Personnel Life Support equipment, flares, COMSEC equipment, supply support, training equipment and support, publications and technical data, U.S. Government and contractor technical assistance and other related elements of logistics support for use by the to support the aircraft.

This proposed sale will involve the following contractors:

• AAI Services Corporation in Goose Creek, SC
• Boeing Company in Long Beach, CA
• Boeing subsidiary McDonnell Douglas Training Systems in St. Louis, MO
• United Technologies Cooperation, Pratt & Whitney Military Engines in East Hartford, CT
• Northrop Grumman Systems Corporation in Rolling Meadows, IL

Additional subcontractors may be needed depending on the exact nature of the contracting arrangements established. This proposed sale will require Boeing to enhance a facility at Ramstein to provide C-17 logistics support under the current GLOBEMASTER Support Partnership, and will require approximately 14 U.S. Government representatives at the facility. Implementation of this proposed sale will require the assignment of up to 8 each U.S. Government and contractor representatives in country for annual participation in training, program management, and technical review.

Nov 27/06: NATO Secretary General Jaap de Hoop Scheffer, the President of Latvia, Vaira V??e-Freiberga, and senior Alliance military officials attend a display of C17 airlift capability in Riga, the day before the NATO summit. NATO’s release states that “initial operating capability is planned for the latter half of 2007, with the full complement of aircraft and full operating capability in 2009.” As of March 2008, initial operating capability is still a distant eventuality. NATO release, includes video and audio of associated speeches.

Oct 9/06: Lithuania announces and explains its participation, which it expects will be LTL 3 million (about $1.1 million) per year for 30 years, in return for 45 flight hours per year. The release is in English.

Sept 14/06: US State Department – “NATO Allies Agree To Buy C-17 Aircraft, Reducing Airlift Shortage.” The USA’s contribution may include purchasing a full C-17 for the pool.

Sept 12/06: The Dutch Ministerie Van Defensie comments: “Nederland Neemt Deel Aan C-17 Initiatief.” They expect to pay EUR 10-15 million per year (about $12.5-20 million) per year for 30 years, in return for 500 flight hours per year.

Sept 12/06: A Letter of Intent (LOI) is publicly released by 13 NATO Allies to launch contract negotiations for the purchase of C-17 transport aircraft. On behalf of these nations, the NATO Maintenance and Supply Agency (NAMSA) has begun negotiations with Boeing, and the development of a formal Weapons System Partnership among the nations. NATO release.

July 26/06: US State Department – “U.S. Suggests NATO Allies Could Pool Money to Buy C-17 Aircraft.”

Additional Readings

• DID FOCUS Article – The Global C-17 Sustainment Partnership. Set to public access. Describes the C-17, and the performance-based support partnership that maintains and upgrades all C-17s around the globe.

• DID (Oct 30/07) – Interactive: C-5s vs. C-17s in Washington. Includes downloadable Excel spreadsheet with Congressional Research Service figures for C-17 price, operating costs.

• DID (May 25/07) – European Air Transport Command Agreement Signed. Not related to the C-17, or NATO. It’s an agreement to share aircraft (which will mostly be Airbus A400Ms), and create a de facto EU pool alongside NATO’s. That agreement now has 12 members, only 2 of which overlap with SAC.

• NATO – Strategic Airlift Capability. A sidebar offers ongoing news.