Le Bourget, France—The 12-nation consortium that acquired three C-17s for international use can expect a partial refund on the airplanes, consortium leadership and a Boeing representative told the Daily Report here last week at the Paris Air Show. The NATO Airlift Management Agency could get as much as $80 million to $90 million back in total on the airplanes because of amortization and negotiation. When the consortium purchased the aircraft, they were expected to be among the last C-17s produced, and, as such, were priced at the “last lot rate.” Subsequently, Boeing has sold dozens more to the Air Force and international buyers, most recently India, which has agreed to buy 10. A Boeing spokesman said the last lot rate “no longer applied” and moreover, final negotiations between NAMA and the US government under the foreign military sale “resulted in an aircraft price lower than budgeted in the [letter of acceptance], hence another reimbursement is coming.” Neither party would say officially what the amount of the refund will be.
U.S. Air Force F-35s and F-22s regularly deploy deep into the Pacific region from Alaska, Utah, and Hawaii. In the future, though, the head of U.S. Indo-Pacific Command would like to see the Air Force permanently station fifth-generation aircraft west of the international date line—closer to China.