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October 2003

Commercial C-17 Could Help Military Mobility

by Sheila R. Ronis

Seeking to improve its ability to move cargo around the world faster and more efficiently, the Air Force created the Commercial Application of Military Airlift Aircraft program.

The CAMAA program is based on the development of the BC-17X, a commercial derivative of the Air Force C-17.

“The CAMAA program is representative of a whole new way of thinking, as dictated by profound changes in the political, industrial and military landscapes,” Col. Dennis Hunt, CAMAA director, said in a recent interview.

According to Hunt, “Significant events in the past few years have forever changed how we view the military industrial base and our allies. We are rethinking what constitutes threats to national security including the essential elements of rapid deployment.”

A commercially owned and operated BC-17X aircraft is expected to be profitable in the commercial market while supporting Department of Defense airlift requirements. The Air Force has proposed that The Boeing Company build the BC-17X.

“CAMAA exists because of our need for increased global capacity while being mindful of price considerations,” Hunt said.

A report by the Office of Management and Budget warned that the Defense Department “must aggressively examine possible trade-offs within the airlift program that could lower the cost of meeting the lift requirement without sacrificing military readiness or combat capabilities.”

Cost reduction, however, is only one part of the story of the C-17/BC-17X.

The proposed commercial derivative of the C-17 would be able to take off with its full 87-ton load in under 4,000 feet. In tests of its high “sink” rate, it has landed on 1,300 feet with a 20-ton load. Moreover, it does not require much airport infrastructure, and can land fully loaded on short, unpaved runways.

Once on the ground, it is self-sufficient, can make a three-point turn on an 80-foot wide runway and even back up a two percent grade through vectored reverse thrust.

Air Force sponsored studies conducted in 16 industries provided a business case for an emerging global industry using the BC-17X that will create new alternatives for global shipping. A new study says that 30 to 50 BC-17Xs could be supported by the so-called “austere-project” market. Global shipping currently is dominated by non-U.S. firms, but the BC-17X could effectively compete for a share of that market.

The giant Antonov AN-124 is proving the viability of the air movement of heavy and outsize goods as a growth industry. It is capable of carrying 120 tons, but is limited to servicing only large international airports. The short-airfield capable BC-17X could service commercial projects located in less developed areas of the world.

If successful, this CAMAA strategy could ultimately save the Air Force and the taxpayers up to $8 billion in operations, maintenance and overall support costs, according to Air Force studies.

The public/private acquisition strategy will include both government funding and private financing to help get the commercial operation off the ground. The government subsidy will secure use and lifetime availability of these aircraft to the Department of Defense in time of need.

The Air Force hopes that this program will help fulfill the nation’s airlift requirements with highly capable commercial outsize and oversize cargo aircraft while assisting U.S. industry in capturing more civilian shipping business.

Currently, the Air Force is considering federal credit as the financial incentive to lure industry and to share risk of this public/private venture. The agreement would be dependent upon a C-17 follow-on multi-year contract, and congressional authorization for the agreement.

It is clear that some in the Senate believe this to be a good idea. The Fiscal Year 2004 Senate Appropriations Committee Report directed the Air Force to provide an implementation plan by June 2004.

“The committee recognizes the potential military and commercial value of expanding the Civil Reserve Air Fleet with outsize cargo capacity, and encourages the Air Force to explore ways to accelerate the Commercial Application of Military Airlift Aircraft Initiative,” said the report.

In many ways, CAMAA is an experiment in acquisition reform. It would allow Boeing to produce more planes while possibly reducing the cost per plane.

“The CAMAA program is a great and creative solution to one of the nation’s dilemmas—finding a financially feasible way to not only meet wartime airlift requirements at significant savings to the taxpayer, but at the same time, provide strong economic incentives to help U.S. industries maintain a foothold in the growing international outsize cargo market,” Hunt said.

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