Without further aircraft orders, significant workforce reductions will begin in early 2008 as the production line heads toward complete shutdown in mid-2009. Boeing is on contract for 190 US Air Force C-17s, and the company says independent analysis shows a requirement for at least 222 of these aircraft. Based on the 34-month lead time necessary to build a C-17, Boeing claims it would have needed a commitment now to avoid a break in production. The Department of Defense did not request funding for new C-17s in the Fiscal Year 2008 budget, released in early February. Consequently, maintaining the C-17 supply base and production line at current production rates will require funding for up to 16 C-17s when Congress finalizes the FY2008 budget. Boeing says the notice to suppliers will ultimately affect more than 7,000 Boeing jobs in California, Missouri, Georgia, and Arizona, directly tied to the C-17, and the programme’s nationwide supplier workforce that totals more than 25,000 people. Nearly 700 companies in 42 states provide parts and services that go into each C-17. Boeing is assessing the potential financial impact of the US government not ordering additional C-17s. The company may incur costs beyond those that would be recoverable from the government. C-17 production is currently scheduled to continue until mid-2009.
