http://usinfo.state.gov/xarchives/display.html?p=washfile-english
<http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2006&m=
September&x=20060913162646MVyelwarC0.4751245>
&y=2006&m=September&x=20060913162646MVyelwarC0.4751245
 

NATO Allies Agree To Buy C-17 Aircraft, Reducing Airlift Shortage

Three or four cargo planes based in Germany would be shared by 13 nations
By Vince Crawley
Washington File Staff Writer
A C-17 cargo plane descends after being refueled by a KC-135E Stratotanker
A C-17 cargo plane descends after being refueled by a KC-135E Stratotanker
(CAP Images)
Washington -- NATO has announced that 13 allies are in negotiations to buy
at least three or four Boeing C-17 Globemaster III long-range cargo jets,
with deliveries beginning in 2007.
The September 12 announcement follows six months of negotiations aimed at
pooling financial resources in order to help reduce NATO's chronic airlift
shortage.
The plan was proposed by the United States, which has agreed to participate
by contributing as much as an entire aircraft to the new NATO airlift fleet.
The project would boost NATO's airlift capability while also providing
additional aircraft sales for U.S. contractor Boeing, a rival to the
European Airbus consortium, which also is developing a transport aircraft.
That plane will not be ready for service until the end of the decade at the
earliest. 
Under the newly announced plan, each participating nation will agree to pay
for a portion of an aircraft rather than an entire aircraft.  The
four-engine C-17 is the workhorse of the U.S. Air Force, which is budgeted
to buy 180 aircraft. The British Royal Air Force also flies C-17s. But the
U.S. defense contractor Boeing announced in August that it is beginning to
shut down its production line if more aircraft are not ordered soon.
The 13 nations released a letter of intent (LOI) to launch contract
negotiations for the collective purchase of three or four aircraft. The
nations plan to form a NATO strategic airlift capability (SAC) unit based at
Ramstein Air Base, Germany, which is also the hub of U.S. airlift operations
in Europe.
"What we found is that many allies don't need a whole plane," Victoria
Nuland, the U.S. ambassador to NATO, said in a July interview describing the
possible C-17 purchase. "So if they come together here, they get a 10th of a
plane, a 20th of a plane." U.S. officials have said that housing the
aircraft at Ramstein would reduce maintenance and ownership costs
significantly. (See related
<http://usinfo.state.gov/xarchives/display.html?p=washfile-english&y=2006&m=
July&x=20060726145543MVyelwarC0.5758173>  article.)
"Because of the urgent operational need for strategic airlift, the SAC
nations intend to conclude contract negotiations this year, and have the
goal of receiving the first C-17 by the middle or end of next year," NATO
officials said in their September 12 press release. "Additional planes are
called for to be delivered every six months."
Currently, NATO leases six Russian and Ukrainian Antonov An-124-100 cargo
aircraft under an arrangement known as the strategic airlift interim
solution (SALIS). The NATO C-17s will be flown under a similar arrangement,
alliance officials said. 
"The 13 NATO nations will fly the planes based on sovereign national
requirements," NATO officials said in their press release. "While these
national requirements will often be related to NATO operations, they many
also be exclusively of a national character." In addition, NATO officials
said the aircraft could be used for United Nations, European Union or
international purposes such as humanitarian airlift and disaster relief.
Nations signing the LOI are: Bulgaria, the Czech Republic, Denmark, Estonia,
Italy, Latvia, Lithuania, the Netherlands, Poland, Romania, Slovakia,
Slovenia and the United States.
"Membership in the airlift fleet remains open to other nations, and some
additional nations are considering joining," NATO officials said.
The full text <http://www.nato.int/docu/pr/2006/p06-107e.htm>  of the C-17
press release is available on the NATO Web site. A fact sheet
<http://www.af.mil/factsheets/factsheet.asp?fsID=86>  on the C-17 is
available on the U.S. Air Force Web site.
(The Washington File is a product of the Bureau of International Information
Programs, U.S. Department of State. Web site: http://usinfo.state.gov)


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