The United Arab Emirates signed surprise deals worth $3 billion to acquire 12 Lockheed Martin C-130Js and four Boeing C-17s during the International Defence Exhibition & Conference (IDEX) in Abu Dhabi, greatly bolstering its military airlift capacity.
The new deals add to a growing build-up of airlift capacity in the Persian Gulf. The UAE's fellow Gulf Cooperation Council member Qatar ordered two C-17s last year, and Boeing lists Kuwait, Oman and Saudi Arabia as future sales candidates for the type (below).
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Boeing is "pleased" the United Arab Emirates is to acquire the C-17. "We look forward to partnering the UAE as it strengthens its airlift capabilities," it says.
Privately owned Abu Dhabi-based investment firm Waha Capital is to finance the C-17 and C-130J contracts. The company is usually involved in commercial aircraft transactions, such as leasing and financing airline deals for Airbus A330s.
The UAE's acquisition makes it the sixth international customer for the C-17, following Australia, Canada, NATO, Qatar and the UK. It raises Boeing's total foreign orders to 22. The US Air Force has ordered 205 C-17s, but Boeing requires a new sales commitment this year to keep production alive beyond 2011. Boeing has also identified India, Japan, the Netherlands and Singapore as potential future buyers.
Lockheed says its order with the UAE covers the delivery of 12 stretched-fuselage C-130J-30s "of similar specification to those being delivered to the US Air Force." It will also deliver spare parts and a weapon systems trainer under the deal, which raises its C-130J (USAF example, below) backlog to 98 aircraft, including 42 for export customers.
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Introducing new tactical and strategic transports will augment the UAE's current transport inventory, which includes about six C-130H/L-100s, 11 EADS Casa CN-235s and seven Cessna 208 Grand Caravans. It also ordered three A330-based multirole tanker transports from EADS in 2007.
Source: Flight International