SALIS’ Sibling: NATO’s C-17 Pool Inaugurates In-House Heavy Lift

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, 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 covers NATO C-17 acquisition program, including its structure and ongoing announcements.

The program now has an adequate name, as NATO SAC has signed a contract, all 3 aircraft have been delivered, and SAC C-17s have been busy on missions for a couple of years now.

The NATO C-17 Pool

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.

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 July 2009. The 2nd and 3rd planes will be delivered in September and October 2009, respectively.

The plan was an initial operating capability by July 27/09, which happened on time, and full operating capability in 2009-2010. All 3 aircraft were in place for FOC by the end of 2009.

The C-17s are 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.

Shares of the 3-plane fleet’s expected 3,165 flight hours will be proportional to financial contributions. For instance, the USA has provided roughly 30% of the funding, will use 30% of the annual flying hours and has committed 41 Airmen, which is about 30% of the Heavy Airlift Wing’s 131 total positions. In contrast, the Dutch MvD is a proportionally smaller contributor; they expect 500 flight hours per year, in exchange for about EUR 10-15 million per year over 30 years.

The aircraft were originally slated to be based alongside American C-17s at Ramstein air base in Germany, but NATO decided to run SAC from Papa Air Base instead, a reserve base in NW Hungary near Austria. This was a 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.

The Hungarian Air Force will manage the airfield, air traffic control operations, and base infrastructure support. NATO’s multinational HAW crews will handle front line duties, while a Boeing team provides backup, materials management, and depot maintenance support, under the C-17 Globemaster III Sustainment Partnership program.

Contracts, Notifications & Key Events

Jan 29/14: Infrastructure. The SAC Heavy Airlift Wing inaugurates an 1,800 m2 Interim Cargo Facility at Papa AB, Hungary. Really, it’s just a tent with aluminum support structure and heating and ventilation, fencing, a vehicle maneuvering area, and roads connecting the facility to the taxiways of the base. Despite these limits, a covered and semi climate controlled facility is a notable step forward for the base, which needs that sort of capability to route and shift incoming supplies.

The HUF 282 million ($about 1.3 million) project was designed by local firm UVATERV Zrt., and carried out by STRABAG Zrt. Source: Heavyairliftwing.org, “Strategic Airlift Capability Interim Cargo Facility Inaugurated for Use at Pápa Air Base, Hungary”.

Nov 13/13: SAC’s 3 Boeing C-17As break the 12,000 flight hour mark during a combined Finnish, Swedish and Norwegian combined mission.

Since its launch in July 2009 the Heavy Airlift Wing has carried out over 840 missions delivering over 36,220 tons (79.9 million pounds) of cargo and carrying over 47,000 passengers. 2013 alone is expected to reach 3,165 annual flying hours. Sources: HeavyAirliftWing.org, “Strategic Airlift Capability Heavy Airlift Wing C-17 Fleet Reaches 12.000 Flying Hours”.

November 2012: Full Operational Capability declared for the Heavy Airlift Wing. Sources: HeavyAirliftWing.org, “Strategic Airlift Capability Heavy Airlift Wing C-17 Fleet Reaches 12.000 Flying Hours”.

Oct 22/10: Boeing receives a $64.6 million contract modification, covering for the continued performance of the C-17 Globemaster III sustainment partnership for NAMA (NATO) and Qatar. At this time, $32.5 million has been obligated (FA8614-04-C-2004).

Oct 6/09: Support. A $61.1 million contract to exercise the FY 2010 option for the continued performance of the C-17 Globemaster III Sustainment Partnership for North Atlantic Treaty Organization Airlift Management Agency aircraft. At this time, $28.8 million has been obligated (FA8614-04-C-2004, P00337).

Sept 17/09: SAC 02. Boeing delivers SAC 02 to the NATO Airlift Management Organization (NAMO) at Boeing’s final assembly facility in Long Beach, CA. SAC 02 arrives at Papa AB on Sept 21/09. Boeing intends to deliver SAC 03 in early October 2009, completing the existing order. Boeing.

June 5-15/09: France. With a fleet of aging C-160 and Lockheed Martin C-130H tactical transports that continue to see heavy demand, French Defense Minister Hervé Morin is quoted as saying that the government has expanded its stopgap options. France has also approved the modernization of its 10 newest C160 Transalls so they can remain in service until the first A400Ms arrive, which is now expected to happen in 2014-15.

Other possibilities for France include leased or purchased C-130Js, stepped up per-hour leasing of Russian AN-124s under NATO’s SALIS pool, per-hour C-17 leasing under NATO’s SAC pool, acquisition or lease of EADS’ smaller C-295Ms, or advancing their planned Airbus 330 MRTT aerial tanker & transport buy.

These interim options group themselves by tradeoffs. Some contenders (C-295M, A330 MRTT) lack the reinforced floors required for dense tactical loads like armored vehicles. Others (AN-124, A330 MRTT, C-17s to lesser extent) require longer runways. Range and refueling capability are potential issues for some (C-295M, some C-130Js), while maintaining overall fleet strength and front line airlift availability is a concern in other cases (AN-124/ C-17 time-shares, A330 MRTT to some extent). Aviation Week | Defpro | Bloomberg News.

March 13/09: Industrial. 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.

Jan 12/09: UK. British Defence Secretary John Hutton declares that the 3-4 year delay in fielding the Airbus A400M is unacceptable, and will create too much stress on the existing fleet. With first flight of the A400M now expected in 2013, no production planned before that milestone, and the possibility of changes to the A400M’s range and carrying weight, Lockheed Martin is moving to sell smaller C-130Js to disappointed countries as an interim solution.

In every crisis, however, there an opportunity, and NATO SAC participation would be another option. Read “A400M Delays Creating Contract Controversies” for updates, and further details.

Nov 29/08: Dutch Defence State Secretary Jack de Vries proposes to funnel EUR 70 million into the NATO SAC program, from his military’s personnel shortage savings of EUR 90 million. The other 20 million will cover higher than expected fuel prices. NIS news.

Nov 10/08: EDA A400M pool. Aviation Week reports that 12 European Defense Agency (EDA) member countries have agreed to pool airlifter resources in the future, with the focus on the new Airbus A400M. A formal letter of agreement is due in 2009 from existing A400M customers Belgium, France, Germany, Italy, Luxembourg, and Spain; as well as prospective customers the Czech Republic, Greece, the Netherlands, Romania, and Slovakia.

The Netherlands and Romania are the only overlapping NATO SAC participants. Initial operational capability is planned for 2014, with full operational capability planned for 2017. The scope of this cooperation, and number of aircraft involved, has yet to be worked out. See also: “European Air Transport Command Agreement Signed.”

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.

April 4/08: Latvia. 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: Finland. 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. 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: Finland. 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).

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 C-17 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. 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: USA. 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: Netherlands. 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.

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.