GUY NORRIS / LOS ANGELES

Canada mulls over its transport options, as Boeing delivers final C-17 to UK Royal Air Force

Boeing has been given until 14 September to respond to a final set of Canadian questions over the possible operation of C-17s and has revealed it is discussing an outright purchase deal rather than leasing as previously anticipated.

In line with other contenders in the Canadian Analysis Of Options For Airlift's exercise, including Lockheed Martin and Airbus Military Company, Boeing has completed responses to two main sets of questions. The final tranche was completed last month for BCMI, a Canadian analyst's company appointed by the government to prepare a report on its airlift options. BCMI is due to present its report on 5 November, leading to an eventual request for proposals from the Canadian Government, expected in September next year.

Boeing is understood to believe the BCMI report constitutes a "mini down-select". This is contested by Lockheed Martin which is preparing airlift "solutions" based on several packages and maintains the exercise falls short of a "mini down-select" because "it doesn't deal with funding".

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Boeing says leasing, lease-purchase and buy-back options were considered for Canada but have been rejected in favour of an "outright straight purchase only". It adds that the only variable in the proposal covers the number of aircraft. This is believed to range from four to eight, though the company says only it is "around six".

Details of the Canadian bid emerged as Boeing delivered the fourth and final leased C-17 to the UK Royal Air Force on 24 August. The RAF fleet has amassed more than 350h since the first C-17 was accepted in May.

"It's about one-third above our normal utilisation rate so far, and mission availability is running at 85% which is well above the 70% rate we traditionally have," says RAF 2 Group air transport/air refuelling policy director Gp Capt Nigel Beresford.

"The problem will be depressing demand. Within NATO we're the only one with the aircraft and everyone wants to use the C-17s," adds Beresford.

RAF sources say acceptance of the C-17 is already so high that early moves are under way to develop a formal operational requirement for the long-term purchase of the aircraft. Based on the delivery date of the first aircraft, the UK has until November 2006 to commit to a one- or two-year extension of the lease programme. If sanctioned, this would extend the lease to nine years.

Source: Flight International