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Pentagon May Limit C-17 Purchases to 40 Aircraft

TIMES STAFF WRITER

Defense Secretary Les Aspin is expected to announce today that he will curtail future purchases of the McDonnell Douglas C-17 cargo jet to as few as 40 aircraft and monitor the company’s progress in fixing problems that have long dogged the program.

The Pentagon had planned to buy 120 C-17s for $37 billion, but the cost of the program has increased significantly in recently years and McDonnell has struggled with technical problems.

Aspin’s plan may allow for additional C-17 purchases if McDonnell can improve its performance. Congressional officials said they believe McDonnell may eventually get as many as 70 orders for the jet.

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McDonnell has 11,000 workers on the program in Long Beach, where the plane is assembled, and many more at supplier firms. The cutback in purchases will mean those jobs will end more quickly than originally planned, but how soon will depend on the annual production rates.

The long-anticipated announcement is also expected to include the disclosure that the Pentagon has agreed to settle claims McDonnell has made against the government over the program for roughly $400 million.

A McDonnell spokesman said he did not have any information about the Aspin announcement.

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