C17 Outlook In Long Beach California

Need info on the C17 outlook In Long Beach California? Read ahead and learn more about the uncertainty over the C-17 and its outlook in Long Beach California…

There has been a lot of uncertainty in previous years for C-17 in Long Beach California. This is actually a company run by Boeing Co., which is the second largest defense contractor in the world. The C-17 is actually a military cargo plane. It has been a drain on the finances of the company as there are many international orders that are pending. Since the plane is expensive, the production has been cut down by one third in order to extend the lifeline of the assembly line in the Boeing factories. The plant is located in Long Beach California and as part of the annual production of planes. There has been drastic reorganizing of the production schedule. Since the production line will be minimized, there is a lot of effort being made on analyzing its impact on profitability and unemployment.

Reason for Uncertainty of C-17 in Long Beach California

The main client for the defense contractor used to be the Pentagon. However since the decline in orders from the Pentagon there has been a drastic change in the production line. By 2011 the C-17 factory is all set to be shut down. Present estimates reveal that there are 36 orders still pending and there are no further orders.

However, the A-400M is a competing transport plane that is being constructed by European Aeronautic and Defense and Space Co. This should help increase the interest of the C-17 in the international market as the A-400M will not make it on the delivery line in time.

The production rate has been drastically decreased and additional international orders are required to boost the sales. The main interest has come from countries in Asia, Middle East and India. However, any foreign ministry order can only be assigned to Boeing after approval by the US government. The company is not allowed to negotiate with any military units of other countries without government approval. Since 2001, some 15 planes of the C-17 category have been delivered each year. However these will be reduced to an annual output of 10 air craft of the C-17 category every year.

Major Effect on Profit

There are more than 5000 workers in the plants and the network supports 25,000 jobs in other states. However, with a reduction of the delivery date, the profit estimates a decrease of $.12. The production rate will drag out the program in the end when the exports are increased. Since there is a considerable backlog of 19 aircraft for the United States Air Force and 10 more playing orders are expected, the company should stabilize before it closes down.

There are six planes for UAE and one plane for the UK apart from the US Department of Defense, which is sanctioning money for the purchase of new airplanes. There has been recent delivery of airplanes of the 17 model to Australia, Qatar and Canada. These planes are used to transport equipment and personnel. The specs of the plane allows it to land on sandy and short runways hence it is prefer to by underdeveloped, developed and desert nations.

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