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Boeing and Canada Sign Deal for Four C-17s

OTTAWA, Feb. 2, 2007 -Boeing [NYSE: BA] and the Canadian government today announced an agreement for the purchase of four C-17 Globemaster IIIs for Canadas Department of National Defence to provide new strategic airlift mobility capabilities for the Canadian Forces. The contract is for the direct commercial sale of four airframes.
 
Boeing will deliver Canadas first C-17 by September, 2007. The second will be delivered later in 2007 and the other two in 2008.  The four aircraft will be based at the Canadian Forces Base in Trenton. 
 
Boeing is pleased that Canada joins its international partners the U.S. Air Force, the U.K. Royal Air Force and the Royal Australian Air Force in selecting C-17, the worlds leading airlifter to modernize its defence forces airlift fleet, said Al DeQuetteville, vice president, Boeing Canada. C-17s offer world-class strategic and tactical capability in one platform and are well-positioned to support Canadas humanitarian and military requirements.
 
Boeing continues its efforts to develop and implement a high-tech and robust industrial partnership program in Canada by committing 100 percent of economic benefits in direct and indirect supplier opportunities for every dollar contracted with the company. The industrial benefits program is an opportunity for Boeing to further engage with Canada, its third largest international supply base.
 
Boeing has been a major contributor and vital partner to the Canadian economy for nearly 90 years. Boeing continues to play a major role in supporting the Canadian Forces transformation by supplying modernized CF-18 fighter jets and C-17 Globemaster IIIs, and making available Chinook CH-47 helicopters as the right solution for operational requirements. Boeing recognizes the breadth and depth of the Canadian aerospace industry, consistently placing substantial amounts of work generated by Boeing Canadian facilities in Winnipeg, Richmond and Montreal, the latter through the recent acquisition of Carmen Systems and its supplier partners. In fact, the C-17 program currently already draws on a number of important Canadian suppliers for parts. Canadian suppliers contribute more than CAD $1 million in parts and services per C-17 aircraft manufactured.
 
Prior to the C-17 opportunity, more than 200 Boeing partners across Canada have benefited from the companys commercial and defence businesses, earning an average of CAD $700 million every year. As a result, Canada is Boeings third-largest supplier network worldwide. Today, Boeing operations and supplier partnerships continue to generate approximately CAD $1 billion annually in Canada.
 
As the only tactical airlifter with strategic range, the C-17 has become the worlds airlifter of choice. Boeing is on contract to design, build, deliver and support 190 U.S. Air Force C-17s, with the last aircraft scheduled for delivery in mid-2009. In addition to the 160 C-17s now in service with the U.S. Air Force, the United Kingdom's Royal Air Force operates four C-17s, and the Royal Australian Air Force in late 2006 took delivery of its first of four C-17s. With todays announcement, Canada will become the fourth nation to operate C-17s.
 
A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a USD$30.8 billion business. It provides network-centric system solutions to its global military, government and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer; a foremost developer of advanced concepts and technologies; a leading provider of space-based communications; the primary systems integrator for U.S. missile defense; NASA's largest contractor; and a global leader in sustainment solutions and launch services.