UPDATE 1-Boeing wins $1.1 billion deal to support US C-17s
(Adds background, developments in London)
WASHINGTON Jan 12 (Reuters) - Boeing Co (BA.N) won a contract on Monday valued at $1.1 billion to support the U.S. Air Force's fleet of C-17 transport planes, more good news for one of Boeing's biggest aircraft programs.
British Defense Secretary John Hutton said on Monday that Britain was looking to buy more C-17 Globemaster cargo planes, due to recent militant attacks on the main land supply route through Pakistan for Western forces in Afghanistan.
Hutton also expressed concern about news from Airbus parent EADS (EAD.PA) that its A400M military transport plane would not be ready before 2012 and said Britain could not accept a three to four year delay in the delivery of the plane.
Boeing spokesman Jerry Drelling declined comment on any potential orders or talks with Britain about additional C-17 sales, saying such matters were confidential.
"Potential C-17 customers will announce their intentions on their own timetable," he said.
Officials at Lockheed Martin Corp (LMT.N), which makes the smaller C-130J transport aircraft, last week said the A400M delay could result in dozens of additional orders for C-130s.
Boeing said the C-17 contract announced on Monday was part of an existing C-17 Globemaster sustainment contract.
Boeing spokeswoman Lori Moore said the contract would cover C-17 total systems support, including spare parts and managing the Air Force's inventory of C-17 parts, depot maintenance work, field support, and modifications.
Given an expected leveling off of defense spending, Boeing and other big defense contractors are increasingly looking to large service contracts to help fuel revenue growth.
Boeing needs more foreign and U.S. orders to keep its C-17 production line open. Last year, it won an order from NATO for three C-17 cargo planes, which generally sell for upward of $200 million each, and the company has been lobbying the U.S. Air Force to more planes as well.
The C-17 is a four-engined aircraft with a rear-loading ramp and can carry up to 170,000 pounds of large combat equipment and troops or humanitarian aid across long distances to small airfields. (Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn and Andre Grenon)
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