The Boeing Co. (BA) announced that it received approval from the U.S. government to supply a fifth C-17 Globemaster III aircraft to the Royal Australian Air Force (RAAF). This new aircraft will enhance RAAF’s ability to meet an increasing demand for humanitarian and disaster relief missions.
The C-17 fleet of the Royal Australian Air Force has allowed it to support the relief efforts in the earthquake- and tsunami-affected regions of Japan. RAAF also helped in the relief efforts in New Zealand, which was impacted by an earthquake, powered by its C-17 airplanes. The C-17 provided yeoman’s service, bringing relief to several communities in Queensland, Australia affected by flooding.
To deal with nature’s fury and extend timely supply of relief, the RAAF needed to add another C-17 airplane to its existing fleet. RAAF has been a loyal customer for the Boeing C-17 variant since 2006 and this new aircraft, which is scheduled to deliver in August, will further extend this relationship.
Boeing’s stoic C-17 is in demand for its ability to fly long distances and land in remote airfields in rough and harsh terrain anywhere in the world, at day or night. This makes C-17 a premier transporter for military, humanitarian and peace-keeping missions. Till date, Boeing has delivered 230 C-17s worldwide, including 20 to international customers.
Boeing expects its Defense, Space & Security segment to generate revenues in the range of $31.5 billion to $33 billion in 2011, with Military aircraft to contribute in the range of $14.2 billion to $14.7 billion in 2011. Backlog at the segment, at end 2010, was $65.2 billion, marginally higher than 2009 levels of $64.8 billion.
Chicago-based Boeing Co. currently has a Zacks #3 Rank (short-term Hold rating). We also maintain a long-term Neutral rating on the stock. The company competes with the likes of General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
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