Boeing, already financing 10 additional C-17s on its own dime beyond the U.S. Air Force order of 190, is also paying for the long-lead parts to build 20 more, according to an industry source.

The company began funding the extra C-17s in hopes that the Air Force would buy more. The Air Force has decided not to re-engine its entire C-5 fleet, leaving an opportunity for Boeing to continue selling the aircraft to the Pentagon. Despite an aggressive push last year for international sales, foreign buys could not carry the production line beyond Fiscal 2009.

The decision to add more company funding to the C-17 product line was approved April 4. The 20 new aircraft include five in the 2009 production lot as well as 15 in 2010.

Company officials find hope in comments from lawmakers who support extending the USAF buy beyond 190 as well as U.S. Transportation Command Chief Gen. Norton Schwartz's testimony to Congress supporting a buy of more of the heavy transports.

The additional company funding will "protect" the cost data associated with the optimum production rate of 15 of the transports per year through 2010 and "avoids a gap in production that would drive the price of the C-17 higher," the industry source says.

The Air Force included the purchase of 15 C-17s in its Fiscal 2009 unfunded priorities list to Congress; however, it has abdicated budgeting for the program, citing higher priorities like the Joint Strike Fighter and the KC-X refuler. This has forced Boeing to push Congress for extra funding.

Boeing's move to finance more C-17s comes only weeks after the company's stunning loss of the $35 billion refueling tanker contract to an Airbus design in February. Boeing's protest of the Air Force's award of a Northrop Grumman/EADS North America A330 design ruffled feathers at the service. The Government Accountability Office is reviewing Boeing's March 11 protest, and Boeing claims USAF made unfair changes in its scores for the dueling teams.