Four C-17 Globemaster IIIs Heading North

It's official. It's not unexpected. Boeing and the Canadian government signed an agreement Thursday for the purchase of four C-17 Globemaster IIIs for Canada's Department of National Defence to provide new strategic airlift mobility capabilities for the Canadian Forces.

Boeing will deliver the aircraft from its California factory where the they are assembled, with first delivery expected as soon as fall 2007. The Canadian C-17s will be based at the Canadian Forces Base (CFB) in Trenton, Ontario.

Gen. Rick Hillier, Canada's chief of defence staff, joined Defence Minister Gordon O'Connor, Industry Minister Maxime Bernier, and Public Works Minister Michael Fortier at National Defense headquarters for the announcement.

"We will be faster and better in reaching out" to communities around the world in need of emergency aid by rapidly transporting Canada's Disaster Assistance Response Team, as well as better replenishing soldiers in the field, he added.

"This marks the beginning of a new era for the Canadian forces," said O'Conner. Hillier said the C-17 was a perfect fit for Canada's military needs.

"It's essential," he said. "It gives us a capability to move around the world that we have never had in our history."

This is a good day for the Canadian military as the government manifests its stated intention to begin the process of reinvesting in much needed military equipment, said Tim Page,  president of the Canadian Association of Defence and Security Industries

"Boeing is pleased that Canada joins its international partners -- the US Air Force, the UK Royal Air Force, and the Royal Australian Air Force -- in selecting C-17, the world's leading airlifter, to modernize its defense forces airlift fleet," said Dave Bowman, vice president and C-17 program manager.

The $2.8 billion deal fulfills an election campaign pledge by conservative Prime Minister Stephen Harper last year to strengthen the Canadian military.

However, for every cent paid to the U.S.-based Boeing, an equal amount must be appropriated to Canadian firms under Industry Canada guidelines for military procurements.

"When we announced the contracts to equip our Armed Forces ... we were insisting that for every dollar that is given to a non-Canadian vendor, we would insist that this vendor reinvest that dollar in Canada," said Conservative Senator Michel Fortier in the Senate Thursday.

The project also includes separate agreements with the US Air Force for the engines, additional equipment, and in-service support for an initial five-year period for the large transport aircraft, contracts worth an estimated $722.6 million.

The new Canadian C-17s are already factored into the C-17 production plan and will not extend the Long Beach production line beyond mid-2009, when the last C-17 is scheduled for delivery.
 
In addition to the 160 C-17s now in service with the US Air Force, the United Kingdom's Royal Air Force operates four C-17s, and the Royal Australian Air Force took delivery of its first of four C-17s in late 2006. Canada becomes the fourth nation to operate C-17s.

FMI: www.boeing.com, www.canada.gc.ca/main_e.html, www.forces.gc.ca/site/home_e.asp