Boeing Would Triple Military Support:
Tankers and the C-130 Hercules AMP

Boeing has set an aggressive goal of tripling its military aerospace support business between now and 2005, with growing tanker markets and its recent win in the U.S. C-130 Avionics Modernization Program expected to feature heavily.

The business unit currently records revenue of $3 billion, and Boeing hopes to reach $9 billion by 2005, says David Spong, president of Boeing Military Aerospace Support. Spong says the bar's been set high, and that he'd be pleased even if the target were reached a few years later. But certainly the organization should reach that level over the next decade, he said here.

Boeing sees several trends it believes will allow it to reach the goal. Militaries are going to be spending more on operations and support, Spong says. The mantra is expected to be "less new systems procured; let's maintain our old systems and keep them going," he believes.
Furthermore, the organization is getting ready for the military tanker market that is heating up. Italy may be the first country to make a tanker decision, with the UK, Japan and Australia also in the market. Internationally, Boeing sees a market for 100 tankers during the next decade. Boeing has focused on the 767 as its primary platform for those competitions.

Moreover, the U.S. is beginning to focus on its future tanker needs, to replace more than 550 KC-135s. Because the 767 would be more reliable than the KC-135, Spong doesn't expect a one-for-one replacement. Nevertheless, U.S. Air Force officials are eager to maintain a large fleet to be able to service simultaneous operational requirements globally, which is likely to mean the future tanker program will encompass several hundred aircraft.

The 767 market in the U.S. is likely to grow even more because of the U.S. Air Force's interest in replacing its C-130, C-135, and 707 special mission airplanes with a single platform. But Boeing hasn't yet determined if that would be handled by the company's Space and Communications organization or by Spong's Military Aerospace Support unit. It's also unclear whether the Pentagon will require Boeing to make the 767 platform available to tanker systems providers.
Tankers aren't going to be the only ingredient to meet the growth target. "One of the major thrusts is to go international," Spong says. That would include providing more logistics support for overseas customers. Boeing already provides support for UK C-17s, which is being run through its long-term support contract with the U.S. Air Force. Spong says that model might be adopted for other platforms, if the USAF is willing to support it.