Panel Backs Boeing C-17 Deal

Boeing Co. won approval Tuesday from a House panel for $798 million to extend production of the C-17 cargo plane, an action that may save a Long Beach factory.

The Appropriations Committee, in a defense spending bill set for a full House vote next week, provided the money to buy three C-17s more than the 180 delivered or on order, brushing aside Defense Department objections. The Senate has not yet acted on its version of the measure.

Boeing’s Long Beach plant would close in 2008 without additional orders for the aircraft, which cost about $200 million each. Almost 150 of the planes have been delivered.

The factory in Long Beach has about 6,500 workers, making it the biggest employer in the city.

“It’s an important economic asset for Long Beach, but it’s probably equally important for Southern California” because many of the plant’s workers live around the region, said Robert Swayze, manager of economic development for Long Beach.

About 5,600 employees of suppliers in California also rely on the C-17, he said.

Rep. C.W. “Bill” Young (R-Fla.), chairman of the Appropriations subcommittee on defense, said the full committee acted “in recognition of the C-17 Globemaster’s performance in the global war on terrorism and to preserve” the production line.

The action by the committee, which approves the money spent by the U.S. government for the fiscal year, mirrors moves by the House and Senate panels that authorize defense spending.

Chicago-based Boeing, the No. 2 U.S. defense contractor, has been lobbying Congress this year to overturn the Pentagon’s decision to end production.

The company and representatives of about 150 subcontractors met with lawmakers March 8 in Washington to protest the planned shutdown.

The Pentagon decided to stop making the aircraft after 2008 because a review of military mobility concluded that the Air Force had adequate aircraft and the Navy had enough fast sealift vessels in the planned inventory to move Army and Marine Corps ground units in a timely manner.

The four-engine C-17 can haul an 85-ton payload and fly as far as 2,400 nautical miles without refueling, according to the Air Force. It features a rear cargo door through which vehicles and pallets can be loaded.

Boeing shares fell 90 cents to $76.98.