Global HeavyLift Holdings, LLC, Poised to Launch a New American Controlled Heavylift Air Cargo Industry Based on Commercial Versions of Boeing C-17 Globemaster III; Current Strategies Will Address U.S. Industrial Base Global Supply Chain

Vulnerabilities in Multiple Industries including Automotive



    CHICAGO, Feb. 8 /PRNewswire/ -- Global HeavyLift Holdings, LLC (GHH) a
 Florida-based Defense Logistics Agency (DLA) listed air cargo strategic
 solutions entity founded in 2002 initially involved in developing the
 intellectual resources supporting the crafting of architecture for
 infrastructure of an American-controlled HEAVYLIFT industry (the movement via
 air of heavy and outsized goods) has announced its intent to pursue a 1.4
 billion dollar private placement.  This strategy covers the acquisition of 10
 prior use commercial application C-17 Globemaster III airlift aircraft,
 designated by Boeing as the BC-17.
     "Over a decade ago, Boeing, in collaboration with logistics data
 development partners, identified the potential for an emergent heavylift
 industry, that is, the movement of heavy and outsized goods too large to fit
 in any door of any 747 freighter," says Myron Stokes, a principal in the firm
 who has been involved with data development and project strategy and who is
 Publisher of eMOTION! REPORTS.com (http://www.emotionreports.com ) an
 aerospace/automotive industry research and analysis site as well as a former
 Newsweek, Newsweek Japan and Newsweek International industry correspondent.
 "Russia quickly seized the initiative through the commercial application of
 the world's largest production aircraft, the Antonov AN-124 military airlift,
 which can not only carry up to 150 tons in heavy goods such as oil rigs,
 aircraft fuselages, satellites and sections of assembly lines, but can operate
 from underdeveloped or battle damaged airfields.  It right now controls this
 industry with an international customer base including Boeing and the U.S.
 Air Force."
 
     Superb "Aero-athleticism"
     "Boeing's intent, of course, was to find order bank increasing non-
 military applications of the superlative operational characteristics of the C-
 17, which is unrivalled in its ability to deliver up to 87 tons of heavylift
 items at 489 kts anywhere on the planet where there's flat earth.  In fact, it
 requires no infrastructure and is self-unloading," says Stokes.  Astoundingly,
 the Globemaster in Air Force tests can take off and land in 1310 ft with 22
 tons aboard owing to high lift and high sink rates.  "Trying to compare a C-17
 to a 747 or even the AN-124 is like comparing Fat Albert to Michael Jordan,
 owing to its superb aero-athleticism. And that ability makes it a potentially
 indispensable tool for the movement of supplies for oil, gas, gold, diamond,
 coal or other exploration/mining projects in austere areas with short, non-
 infrastructure or non-existent, airfields.  This has been designated as the
 SAM or short and austere, market; a subset of the HOM or heavy and outsize,
 market."
     The program that emerged from these efforts, a joint Air Force and Boeing
 project, became known as the CAMAA or Commercial Application of Military
 Airlift Aircraft.
     "Although no longer carrying this program designation, the diligent
 efforts of colleagues and associates over the past five years in particular in
 government and industry have yielded 17 case studies, involving some of the
 largest corporations in the world.  This undertaking identified real projects
 worth in excess of $400 billion that could benefit from and support up to 50
 commercial C-17s," Stokes says.  He further notes that the 30 year business
 plan is complete covering all areas of operation inclusive of the role played
 by its strategic partner, a globally renowned air cargo operator who was a
 major player in movement of materiel for Gulf War I.  "I must say that thanks
 to the keen insights and industry operational knowledge of our strategic air
 partner, who worked tirelessly with GHH personnel, the heavylift project
 evolved and solidified.
     "Now the work begins, GHH making the transition from being primarily a
 development of intellectual resources entity in terms of project development
 policy and process, to a profit and loss model."
 
     Transformational Recapitalization
     Stokes notes that major investment banking firms who had the opportunity
 to review the business plan and case studies, declared it as a financeable
 undertaking.
     "We have also been encouraged by the fact that several international
 investment banking firms and other financial institutions who have reviewed
 the plan data and case studies presented by the principals and involved
 parties of Global HeavyLift Holdings, LLC, feel it is a viable pursuit,"
 Stokes continued.  "They also understand that current issues relative to
 specific Congressional language allowing the Air Force to re-sell first
 generation C-17s as part of the Transformational Recapitalization aircraft
 acquisition initiative, and FAA special certification must be resolved.
 Indications are they will.  It is therefore our intent to seek out and
 maintain appropriate relationships conducive to the development of best
 practices leading to required funding."
     This alternate financing initiative, Stokes says, referencing a November/
 December 2004 Defense AT&L article "Transformational Recapitalization:
 Rethinking USAF Aircraft Procurement Philosophies" by Pentagon Consultant and
 national security strategist Dr. Sheila Ronis, will allow the Air Force to re-
 sell its aircraft, while still possessed of much of its useful life, to the
 private sector for development of a U.S. controlled heavylift industry.  "The
 largest benefit is the USAF no longer has to be stuck with aircraft in
 inventory for upwards of half a century as in the case of the B-52, the KC-135
 or C-5," says Ronis.  "Instead, it can sell its aircraft at the 14 or 15 year
 mark -- operationally still young by current standards -- to the private
 sector as would be the case with C-17 or in the case of fighter and bomber
 craft, the air forces of other countries.  The monies that it acquires, gets
 added back, or recapitalizes, existing budgets for acquisition."
 
     A "Win-Win" Scenario
     "The 'win-win' is that a new major industry, heavylift, and it is no less
 than that, is launched at a time when the country is reeling from industrial
 base erosion owing to the crippling effects of sustained economic warfare
 against the profitability and capacity of core automotive and aerospace
 companies. Additionally, the Air Force takes a major step in reducing the
 average age of its aircraft inventory, presently at 27.2 years.  That number,
 incidentally, is the highest in this service's history," says Ronis.
     "It goes without saying that the C-17 is an important, if not critical
 tool in the global and asymmetric war on terror that requires new levels of
 rapid response, and thus an invaluable asset in matters military and
 economic."
     This assessment of the C-17 is shared by several Senators and Congressmen
 as indicated in a December 16, 2005 letter sent to President Bush advising him
 that it is imperative to maintain production of this aircraft that has
 regularly exceeded performance expectations, in addition to establishing new
 records in airlift capacity.
     Echoing Dr. Ronis' comments, Stokes notes it is crucial that the Long
 Beach, California, C-17 plant, with its highly trained work force and supplier
 base identified as a national strategic asset in a Department of Commerce
 report executive summary on the economic and industrial base impact of this
 aircraft, remains open.  "Every C-17 that we take off Air Force books," says
 Stokes, "Allows them to order another to address much needed military airlift
 capacity.  Although the current position is that 180 aircraft is enough based
 on a mix of C-17s and retrofitted (engines, avionics) C-5As and Bs, the fact
 that the military must use Russian AN-124s to make up for in-theater short
 falls renders such conclusions at best questionable.  Moreover, it is our
 understanding that the required reliability/mission completion expectations
 for the retrofitted Galaxy's will not be met. Further, it is the opinion of
 several colleagues that the world is being made safe for the AIRBUS-EADS A400M
 turboprop airlifter, whose performance falls in between the venerable
 Lockheed-Martin C-130 and the C-17.
     "If the C-17 is discontinued and its tooling removed to an undisclosed
 location for future use should the retrofitted C-5A and Bs, with a price tag
 now approaching $10 billion and may well exceed that (enough to acquire up to
 50 new C-17s through existing acquisition process and pricing; more if new
 acquisition finance initiatives are utilized) not meet projected performance
 objectives, the current airlift shortfalls will be exacerbated.  Moreover, it
 will be four years (2011 if production were re-initialized in 2007) before a
 C-17 rolls off the assembly line again.
     "Waiting in the wings, no pun intended, will be EADS with its A400M, ready
 and willing to provide these aircraft by 2009.  At this time, they are
 suggesting to potential customers in Air Forces around the world to acquire
 the retrofitted C-130J, which they will acquire in a buyback program exchange
 once the A400M is available. In our estimation, it is a brilliant strategy and
 the epitome of that which constitutes economic warfare in a Sun Tzu sense,
 with Boeing being effectively eliminated from the provision of airlift
 aircraft for at least a decade.  It goes without saying that the impact on the
 manufacturing base will be considerable: 700 suppliers in 42 states who build
 the C-17 either cease to exist or must scramble to find alternative work."
     The irony of it all, Stokes further noted, is that members of his team had
 pushed for the C5A and B retrofit as an interim commercial heavylift program
 aircraft while waiting for BC-17s.  "It was to be an alternative to the
 acquisition of AN-124s should our overtures to the Russians and Ukrainians at
 the time not have succeeded. Also, it had been suggested that the retrofit be
 carried out in Poland as part of the 'offset' (an investment in the country
 virtually equivalent to the value of the aircraft purchase) program required
 as a condition of purchase of F-16Cs by the Polish government.
     "In the middle of these discussions, someone managed to obtain a
 Congressional mandate for maintaining the C5 inventory at current fleet
 strength -- sans the 14 designated for mothballing -- until 2008.
     "As far as performance, initial projections were that new engines and
 avionics (The Israelis being considered to accomplish the avionics upgrade)
 would eliminate 75% of the infamous reliability problems of C5 over the past
 four decades, including a structural spar concern.  It is now our
 understanding these goals cannot be achieved, especially with 62 of the 112
 aircraft being 40 year old 'A' models, (Note: The C5A production line was shut
 down and then re-opened over a decade later to accommodate the Bs) which makes
 the inclusion of these aircraft in the airlift mix as the reason for the 180
 aircraft cap on C-17 all the more puzzling."
     Stokes was pleased that a recently completed Department of Commerce' C-17
 Economic Impact Report Executive Summary clearly corroborates, according to
 sources, GHH's long-time initiative in supporting the current and continued
 necessity of maintaining the Boeing C-17 Globemaster III manufacturing
 facility in Long Beach, California and the viability of the commercialization
 of this aircraft.
 
     U.S. Industrial Base Global Supply Chain Vulnerability
     While it waits for the near future inclusion of C-17 aircraft representing
 the core of the U.S. heavylift industry, Global HeavyLift, along with
 strategic partners, will work diligently with major industrial firms to
 address global supply chain transportation logistics vulnerabilities resulting
 from the fact that no ocean-borne shipping is in U.S. hands but with China and
 South Korea.  "Permanent air augmentation of the global supply chain,
 especially automotive, is not an option or a stop gap methodology, but an
 imperative," says Stokes.
     The company will also engage in pursuit of executive transport
 opportunities through the use of strategic partner-controlled Citation Xs,
 Embraer Legacys and LearJets.
     "We are looking forward to the launch of an American controlled heavylift
 industry that may very well help change the face of the global industrial
 landscape," concludes Stokes.
 
     About Global HeavyLift Holdings, LLC
     GHH is a strategic air transport solutions entity that was born of a
 multi-year public/private effort among forward thinkers in both the private
 sector and government to mitigate emerging and observable vulnerabilities in
 the U.S. industrial base global supply chain.  Such vulnerabilities are
 represented by the fact that no ocean-borne shipping is in U.S. hands at
 present, thus potentially subjecting American corporations, especially
 automotive, and their global operations to the whims and perhaps economically
 hostile activities of and by foreign governments.  Add to this the risk of
 terrorist activities, which have, according to the Department of Homeland
 Security, targeted maritime operations; i.e., ships, ports and ocean
 containers.
 
     Defense Logistics Agency (DLA) listed, (http://www.ccr.gov) it is the goal
 of GHH and its strategic partners around the planet to work with key logistics
 personnel within these corporations and government agencies to conceptualize,
 craft and structure long-term global supply chain alternative transportation
 methodologies through continuous -- not stop gap or emergency -- air
 augmentation solutions.  Its most important mission, however, has been in the
 co-development of global architecture for infrastructure of a new American
 controlled industry, Heavylift, utilizing the excellent airlift performance
 characteristics of the Boeing BC-17.
 
     C-17 Performance Specifications:
     http://www.boeing.com/defense-space/military/c17/c17spec.htm
 
 
     Global HeavyLift Holdings
     74 W. Long Lake Rd.
     Suite 103
     Bloomfield Hills, MI  48304
     248-695-0009
     248-695-0006 (fax)
     www.emotionreports.com (access to pdf data file)
 
 

SOURCE Global HeavyLift Holdings, LLC

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