Boeing Wins Big on C-130 Upgrade

Boeing has won a multi-billion contract from the U.S. Air Force to upgrade old C-130s, representing a huge coup for Boeing's military aerospace support business.

The deal could total $4 billion ultimately and involve the upgrade of 519 aircraft. Boeing faced fierce competition, but was able to best C-130 prime contractor Lockheed Martin, Raytheon and BAE Systems.

"The C-130 [Avionics Modernization Program] represents a major milestone in the convergence of military and civil avionics," maintains David Spong, president of Boeing's Military Aerospace Support. The company says it built its bid on C-17 and Next Generation 737 experience.

AMP is part of the Air Force's long-term C-130 modernization plan. It involves buying new C-130Js and, under AMP, upgrading and modifying 44 different versions of the veteran airlifter into the C-130X.

The U.S. activity should also put Boeing in a strong position to win international C-130 upgrade orders. However, Lockheed Martin and other companies believe they can still be a viable player in that field as well. Furthermore, the deal could create a competition between the C-130J and the C-130X in the U.S., since the Air Force hasn't resolved with certainty the exact mix of aircraft it will buy.

The C-130X will feature six digital displays and the 737NG's flight management system. They should allow the aircraft to meet Global Air Traffic Management demands.

Boeing's main suppliers are Smiths Industries, Northrop Grumman, Honeywell, Rockwell Collins, and Telephonics. The work will primarily be performed at Boeing's San Antonio, TX, support facility where KC-135 overhaul is done. Other facilities involved are the Air Force's Warner Robins and Ogden air logistics centers.

First installations are slated to start in 2004, with program completion targeted for 2014. Peak production would reach 70 aircraft a year.