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Long Beach's flight of fortune
Foreign orders help keep Boeing's C-17 line moving in spite of economic turmoil throughout the nation
Long Beach Press-Telegram 03/02/2009
Author: Karen Robes Meeks
LONG BEACH - Even in a time of economic uncertainty, the outlook of Boeing Co.'s C-17 production line is rosier than most.
Before the recent fiscal downturn, fears of ending the manufacturing line of Globemaster III cargo jets this year prompted officials early on to find ways to lengthen the life of Southern California's remaining major airplane manufacturing plant and Long Beach's largest private employer, with about 5,000 employees.
The result has been a proactive venture into the foreign market, an effort that C-17 program manager Jean Chamberlain says Boeing Co. will continue through 2009.
"We are very aggressively working internationally with a multiple number of countries, particularly since the (Airbus Military) A400M has had to defer their aircraft another four years," said Chamberlin, who also serves as vice president and general manager of Global Mobility Systems, a division of Boeing Integrated Defense Systems' Boeing Military Aircraft business unit.
"We are talking with countries to let them know that we can offer them an alternative for that delay and fielding of their aircraft," she said.
Besides the 183 aircraft being operated by the United States Air Force, 14 aircraft are operating internationally, including six by the United Kingdom, four by Australia and four by Canada.
In October, 10 NATO members and Partnership for Peace nations Sweden and Finland announced the signing of a Memorandum of Understanding to obtain three C-17s.
One will be coming off the production line and the rest will be built when Boeing secures a contract with the consortium sometime this year, Chamberlin said.
Meanwhile, Boeing is working on C-17s for Qatar, which in July became the first Middle East customer to order them. Qatar's C-17s will be delivered in 2009.
On the domestic front, the Air Force earlier this month awarded Boeing Co. a $2.95billion contract to build 15 more C-17s, which extends the production line to at least August 2010.
Boeing's economic outlook has been further boosted by President Barack Obama's mention of the C-17.
"We must preserve our unparalleled air power capabilities to deter and defeat any conventional competitors, swiftly respond to crises across the globe, and support our ground forces," according to the Obama Administration's Web site. "We need greater investment in advanced technology, ranging from the revolutionary, like Unmanned Aerial Vehicles and electronic warfare capabilities, to essential systems like the C-17 cargo and KC-X air refueling aircraft, which provide the backbone of our ability to extend global power."
While Chamberlin said she is encouraged by Obama's mention of the C-17, she said she does not know what effect it will have on the program.
"The president's revised budget for FY10 (fiscal year 2010) will not be out until an April time frame, so we don't know what that means for us," she said.
There is also a supplemental to the fiscal year 2009 Defense Authorization bill that needs to be acted upon this year and which includes six aircraft as a placeholder, she said.
"We are working with the appropriations committee for the defense, both Senate and House, to ensure that bill going forward," Chamberlin said, adding that it will likely be acted upon early this summer.
Meanwhile, Long Beach remains steady despite layoffs at other Boeing properties, including reports of 71 jobs lost in Orange County.
"Certainly, you can't be a business without being affected by the economy," Chamberlin said. "And we've already announced that we'll end up having some layoffs throughout the entire corporation, (but) specifically here in Long Beach, for the support of production of the C-17, not directly as of yet."
Asked what workers at the Long Beach plant face, Chamberlin replied, "For this year, very stable work for them with a focus on what we can do to keep ourselves affordable going forward into the future, so that we can, in fact, offer both our domestic U.S. Air Force and our international customer the options that they need for future airlift."