speednews aerospace and defense conference: a us/nato controlled heavylift industry utilizing boeing...

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Global Heavylift Holdings, LLC Global Heavylift Holdings, LLC Establishing A US/NATO Controlled Heavy & Outsized Industry; Establishing A US/NATO Controlled Heavy & Outsized Industry; Mitigating US Industrial Base Global Supply Chain Mitigating US Industrial Base Global Supply Chain Vulnerabilities Through Permanent Air Augmentation of Vulnerabilities Through Permanent Air Augmentation of Transport Methodologies Transport Methodologies A Presentation to: A Presentation to: SpeedNews Aerospace and Defense SpeedNews Aerospace and Defense Conference; The Jonathan Club Conference; The Jonathan Club Los Angeles, CA Los Angeles, CA May 9, 2007 May 9, 2007 Prepared By: Prepared By: Myron D. Stokes, Managing Member Myron D. Stokes, Managing Member Sheila R, Ronis, Ph.D., Consultant Sheila R, Ronis, Ph.D., Consultant Thomas H. Miner, Member Thomas H. Miner, Member Gilles Saint Gilles Saint - - Hilaire, Ph.D., Consultant Hilaire, Ph.D., Consultant Tarek Ballout, Director, Middle Tarek Ballout, Director, Middle - - East Operations East Operations Nasim Uddin, Ph.D., Consultant Nasim Uddin, Ph.D., Consultant Robert E. Seaman III, Member Robert E. Seaman III, Member Abid Ghuman, Consultant Abid Ghuman, Consultant L. Jeantal Morris, Project Coordinator L. Jeantal Morris, Project Coordinator Gabriella Barthlow, Executive Assistant Gabriella Barthlow, Executive Assistant Wayne Rassner, Agent of Record Wayne Rassner, Agent of Record Kramer & Rassner, PC Kramer & Rassner, PC

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A presentation by Global HeavyLift Managing Member Myron D. Stokes at the Jonathan Club, Los Angeles, in May 2007 outlining a comprehensive and long-term strategy for establishing a US/NATO-controlled heavylift industry -- the movement of goods via air too large or outsized to fit in any door of any 747 or similar size freighter -- using commercial/military variants of the Boeing C-17 Globemaster III airlifter. The Heavy and Outsized sector is currently controlled by Russian and Ukraine utilizing commercial versions of the Antonov AN-124 military airlifter

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Page 1: SpeedNews Aerospace and Defense Conference: A US/NATO Controlled HeavyLift Industry Utilizing Boeing BC-17 Globemaster III Commerical/Military Airlifters

Global Heavylift Holdings, LLCGlobal Heavylift Holdings, LLCEstablishing A US/NATO Controlled Heavy & Outsized Industry;Establishing A US/NATO Controlled Heavy & Outsized Industry;

Mitigating US Industrial Base Global Supply Chain Mitigating US Industrial Base Global Supply Chain Vulnerabilities Through Permanent Air Augmentation of Vulnerabilities Through Permanent Air Augmentation of

Transport MethodologiesTransport MethodologiesA Presentation to:A Presentation to:

SpeedNews Aerospace and Defense SpeedNews Aerospace and Defense Conference; The Jonathan ClubConference; The Jonathan Club

Los Angeles, CALos Angeles, CAMay 9, 2007May 9, 2007

Prepared By:Prepared By:Myron D. Stokes, Managing MemberMyron D. Stokes, Managing MemberSheila R, Ronis, Ph.D., ConsultantSheila R, Ronis, Ph.D., Consultant

Thomas H. Miner, MemberThomas H. Miner, MemberGilles SaintGilles Saint--Hilaire, Ph.D., ConsultantHilaire, Ph.D., Consultant

Tarek Ballout, Director, MiddleTarek Ballout, Director, Middle--East OperationsEast OperationsNasim Uddin, Ph.D., ConsultantNasim Uddin, Ph.D., ConsultantRobert E. Seaman III, MemberRobert E. Seaman III, Member

Abid Ghuman, ConsultantAbid Ghuman, ConsultantL. Jeantal Morris, Project CoordinatorL. Jeantal Morris, Project Coordinator

Gabriella Barthlow, Executive AssistantGabriella Barthlow, Executive AssistantWayne Rassner, Agent of RecordWayne Rassner, Agent of Record

Kramer & Rassner, PCKramer & Rassner, PC

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JUNE 1940JUNE 1940THE BATTLE OF BRITAINTHE BATTLE OF BRITAIN

““Were it not for the US escorted Liberty ship Were it not for the US escorted Liberty ship convoys and Lendconvoys and Lend--Lease, GoeringLease, Goering’’s s

Operation Sea Lion would have succeeded Operation Sea Lion would have succeeded in defeating Great Britain, thus ensuring in defeating Great Britain, thus ensuring

an entirely different outcome of World War an entirely different outcome of World War II. Conversely, control of a nationII. Conversely, control of a nation’’s global s global

supply chain is thus rendered an supply chain is thus rendered an imperative to maintain economic and imperative to maintain economic and

national security.national security.””

National Security Strategist Dr. Sheila RonisNational Security Strategist Dr. Sheila Ronis

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May 1943May 1943Professor Barnes Wallace, inventor of the extraordinarily Professor Barnes Wallace, inventor of the extraordinarily strong geodetic aircraft structure for the initially strong geodetic aircraft structure for the initially indispensable Vickersindispensable Vickers--Armstrong Wellington bomber, Armstrong Wellington bomber, understood the critical role technological innovation would understood the critical role technological innovation would play if the war play if the war –– with outcome not certain for the allied with outcome not certain for the allied forces in 1943 forces in 1943 –– were to be won. His development of a were to be won. His development of a cylindrical spinning bomb dropped from Avro cylindrical spinning bomb dropped from Avro LancastersLancasters of of the famed RAF No. 617 the famed RAF No. 617 ““Dam BusterDam Buster”” squadron at precisely squadron at precisely 220 mph, an altitude of 60ft and a 400 rpm backwards spin 220 mph, an altitude of 60ft and a 400 rpm backwards spin over water, breached the Moehner and Eder dams in over water, breached the Moehner and Eder dams in Germany while damaging the Germany while damaging the SorpeSorpe; disrupting ; disrupting –– albeit albeit temporarily temporarily –– hydroelectric power generation and war hydroelectric power generation and war materiels manufacturing in the Ruhr Valleymateriels manufacturing in the Ruhr Valley……--

--Commentary based on May 2003 analysis Commentary based on May 2003 analysis ““SuperSuper--Globalism: Strategies For Globalism: Strategies For Maintaining a Robust Industrial Base Through Technological, PoliMaintaining a Robust Industrial Base Through Technological, Policy and cy and Process ImprovementProcess Improvement”” eMOTION! REPORTS.com eMOTION! REPORTS.com ((www.emotionreports.comwww.emotionreports.com) )

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““Dam BusterDam Buster”” AvroAvro LancasterLancaster(Note: A new movie depicting this event is in the (Note: A new movie depicting this event is in the

making from the producers of making from the producers of King Kong)King Kong)

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Spring 1943Spring 1943Pacific Theater of OperationsPacific Theater of Operations

Quite aware of the postQuite aware of the post--Midway strategic, tactical and Midway strategic, tactical and supply disadvantages under which his 5supply disadvantages under which his 5thth and 13and 13thth Air Air Forces (USAAF) operated out of Port Moresby, New Guinea Forces (USAAF) operated out of Port Moresby, New Guinea among other Pacific bases against a thoroughly entrenched among other Pacific bases against a thoroughly entrenched enemy at Rabaul and separated only by the Stanley enemy at Rabaul and separated only by the Stanley mountain range, General George C. Kenney ordered mountain range, General George C. Kenney ordered Douglas ADouglas A--20 pilot extraordinaire Paul 20 pilot extraordinaire Paul ““P.I.P.I.”” Gunn (a best Gunn (a best friend of my Godfather, M/Sgt Charles H. Jackson who was friend of my Godfather, M/Sgt Charles H. Jackson who was not only a top turret gunner on the Bnot only a top turret gunner on the B--17F 17F ““Captain and The Captain and The KidsKids””, but armorer for P, but armorer for P--38 Aces Dick Bong and Tommy 38 Aces Dick Bong and Tommy McGuire) whom Kenney called his McGuire) whom Kenney called his ““All around fixer and All around fixer and gadgeteergadgeteer”” to give him an advantage. to give him an advantage.

Gunn did exactly that, as demonstrated by the emergence Gunn did exactly that, as demonstrated by the emergence of Bof B--25 and A25 and A--20 medium bombers with outrageously 20 medium bombers with outrageously devastating firepower. Not the least of which were devastating firepower. Not the least of which were Mitchells with 12 .50 cal. Guns in the nose, H variants of Mitchells with 12 .50 cal. Guns in the nose, H variants of this plane with a 75mm cannon, along with the perfecting this plane with a 75mm cannon, along with the perfecting of of ““skip bombingskip bombing”” techniques in antitechniques in anti--shipping dutiesshipping duties……

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May 2007May 2007Economic WarEconomic War

A state of affairs wherein the trade policies, financial A state of affairs wherein the trade policies, financial and technological resources of an entire country are and technological resources of an entire country are structured and applied so as not only to render structured and applied so as not only to render industries of that country hyperindustries of that country hyper--competitive against competitive against those of the target country, but to those of the target country, but to eliminateeliminate them. them.

This requires a response based on acute recognition This requires a response based on acute recognition of an economic and sociological reality by crafting of an economic and sociological reality by crafting strategies that include trade policy modification and strategies that include trade policy modification and a resurgence of technological innovation to protect a resurgence of technological innovation to protect ––yes protect yes protect –– the all important industrial base. the all important industrial base. Without which no country can surviveWithout which no country can survive……

““Economic warEconomic war…… is always waged firstis always waged first”” Sun TzuSun Tzu

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The The ““Three BattlesThree Battles”” of Economic of Economic WarWar

According to Dr. Ronis, in the paper Total Life Cycle Management: A Different Approach to War, "The near battle is where the troops are engaged in daily combat. For a team engaged in product development, the near battle is in the daily designing, developing, engineering, and manufacturing of the product. The near battle can be described as a product being made and sold in the marketplace on a day-by-day basis in competition with globalcompetitors.

"The rear battle is the infrastructure, or foundation needed to support a continuous near battle. This includes enablers in the environment such as well-educated and trained people, including leadership, well designed processes, and the development and inculcation of doctrine or governing and operating principles and the associated accountabilities required.

"The deep battle is the infrastructure needed to fight future battles. For product teams, this is the investment in future infrastructures, such as R&D or advanced manufacturing, the development of process, holistic management and the skills and learning which are required for the future of all employees – or soldiers.

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Three Battles (contThree Battles (cont’’d)d)

"The rules of war say that all three battles must be fought at the same time, so leadership must align itself, the behavior of all its people and the organization’s capability as the three battlefields are planned for, strategies are determined, and executed. The three battles are viewedas a system.

"Conversely, the utilization of war strategies and tactics by a company or a country seeking dominance in a given industrial sector demands a response in kind. Failure to do ensures the ignominy of defeat.”

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Critical Environmental FactorsCritical Environmental Factors

U.S. has lost control of global shipping and emerging U.S. has lost control of global shipping and emerging heavyheavy--lift industries, causing concerns regarding national lift industries, causing concerns regarding national security, and has already had negative impact on U.S. security, and has already had negative impact on U.S. largest industrieslargest industries

It is imperative that all concerned recognize that the It is imperative that all concerned recognize that the industrial base is inseparable from the defense industrial industrial base is inseparable from the defense industrial basebase

U.S. Air Force has been involved with nonU.S. Air Force has been involved with non--financial support financial support since 2001since 2001

Utilization of (B)CUtilization of (B)C--17 capabilities never before used in 17 capabilities never before used in industryindustry

U.S. is in economic war with other world powers and this initiatU.S. is in economic war with other world powers and this initiative begins the process of ive begins the process of improving U.S. industrial base survivability in two specific marimproving U.S. industrial base survivability in two specific markets; heavy and outsized kets; heavy and outsized and its Short/Austere Project market subset. Both served by Boeiand its Short/Austere Project market subset. Both served by Boeingng’’s Cs C--17 Globemaster 17 Globemaster Commercial Variant the BCCommercial Variant the BC--17. 17.

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The Global Heavylift MarketThe Global Heavylift MarketU.S. Air Force Scenarios U.S. Air Force Scenarios

HOM/SAMHOM/SAMHOMHOM (Heavy Outsized Market) Currently in the (Heavy Outsized Market) Currently in the control of the Russians/Ukrainians (ANcontrol of the Russians/Ukrainians (AN--124124’’s)s)SAMSAM (Short Austere Market) Estimated at a total (Short Austere Market) Estimated at a total of more than $380 billion worth of projects in oil of more than $380 billion worth of projects in oil and gas exploration, mining, space exploration, and gas exploration, mining, space exploration, etc. and it will grow etc. and it will grow Above and beyond the current air cargo market Above and beyond the current air cargo market of $137 billion RTKof $137 billion RTK’’s (revenue ton kilometers)s (revenue ton kilometers)Business cases,(17) conducted by the A.F. work Business cases,(17) conducted by the A.F. work well for the commercial version of the Cwell for the commercial version of the C--17, the 17, the BCBC--17. Further, the AN17. Further, the AN--124 can compliment the 124 can compliment the BCBC--17 in SAM missions. 17 in SAM missions.

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Vision: Vision: Global Heavylift Holdings, LLCGlobal Heavylift Holdings, LLC

A Defense Logistics Agency (DLA) Listed A Defense Logistics Agency (DLA) Listed Contractor (Contractor (www.ccr.govwww.ccr.gov))

NAICS 481212, 4522NAICS 481212, 4522

A Future where Americans and NATO allies A Future where Americans and NATO allies have effectively developed an airhave effectively developed an air--based based global supply chain transportation method global supply chain transportation method alternative and control the global heavylift alternative and control the global heavylift industryindustry……

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Vulnerabilities of U.S. Industrial Base Global Vulnerabilities of U.S. Industrial Base Global Supply Chain to ForeignSupply Chain to Foreign--owned/controlled owned/controlled

Shipping and Terror ThreatShipping and Terror ThreatChina and S. Korea either own or control the bulk of the worldChina and S. Korea either own or control the bulk of the world’’s shippings shipping

ChinaChina’’s burgeoning influence both economically and militarily render is burgeoning influence both economically and militarily render it t capable of disrupting the oceancapable of disrupting the ocean--borne global supply chain for U.S. industry borne global supply chain for U.S. industry at will. This threat exists whenever Sinoat will. This threat exists whenever Sino--American policy discord induces a American policy discord induces a tradetrade--based retaliation. Boeingbased retaliation. Boeing’’s drop from 82% marketshare to 67% of s drop from 82% marketshare to 67% of new airliner business to archnew airliner business to arch--rival AIRBUS in the aftermath of U.S. support rival AIRBUS in the aftermath of U.S. support for Taiwan during a showdown in 1996, according to former Boeingfor Taiwan during a showdown in 1996, according to former Boeing China China President Ray Bracy, was strongly felt President Ray Bracy, was strongly felt

CHINACHINA’’S MILITARY BUILDUP IS WORRISOME, according to S MILITARY BUILDUP IS WORRISOME, according to US/China US/China Security CommissionSecurity Commission data in its 2006 report to Congress and as expressed in data in its 2006 report to Congress and as expressed in March 2007 hearings conducted in Washington (March 2007 hearings conducted in Washington (www.USCC.govwww.USCC.gov).).

US intelligence has confirmed that Aegis BMD technology, represeUS intelligence has confirmed that Aegis BMD technology, representing the nting the defensive core of US Naval forces, has been compromised by a frodefensive core of US Naval forces, has been compromised by a front nt company posing as a LMCO supplier; company posing as a LMCO supplier;

There is strong reason to believe FThere is strong reason to believe F--22 Raptor technology has been 22 Raptor technology has been compromised in this same manner, along with expectation of a Chicompromised in this same manner, along with expectation of a Chinese nese fighter incorporating this technology, complete with internal wefighter incorporating this technology, complete with internal weapons bay apons bay and stealth, making an appearance within 3 years. and stealth, making an appearance within 3 years.

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Vulnerabilities of U.S. Industrial Base Global Vulnerabilities of U.S. Industrial Base Global Supply Chain to ForeignSupply Chain to Foreign--owned/controlled owned/controlled

Shipping and Terror Threat (contShipping and Terror Threat (cont’’d)d)With the completion of an operationally ready With the completion of an operationally ready KoznetskovKoznetskov--classclass carrier, the carrier, the 67,500 ton 67,500 ton VaryagVaryag purchased by the PLAN from the Ukraine projected by purchased by the PLAN from the Ukraine projected by year end, there is no reason to believe a repeat of the 1996 Haiyear end, there is no reason to believe a repeat of the 1996 Hainan Straits nan Straits Destroyer show down (forcing an embarrassing stand down on the pDestroyer show down (forcing an embarrassing stand down on the part of art of Chinese forces) will occur in a 2007 cross straits confrontatioChinese forces) will occur in a 2007 cross straits confrontation relative to n relative to Taiwan reTaiwan re--annexation. The rapid building of Aegisannexation. The rapid building of Aegis--clone equipped clone equipped Luyang Luyang IIII--classclass Destroyers and Russian Destroyers and Russian SlavaSlava--classclass type Cruisers along with an type Cruisers along with an accelerated build on an entirely indigenous design that brings taccelerated build on an entirely indigenous design that brings to mind the o mind the venerable venerable Battle CruiserBattle Cruiser owing to heavy surface armament, strongly owing to heavy surface armament, strongly supports this contention.supports this contention.

According to DoD insiders, there is evidence emerging that the oAccording to DoD insiders, there is evidence emerging that the outcome of a utcome of a South China Sea PLAN and US naval force confrontation may be a dSouth China Sea PLAN and US naval force confrontation may be a defeat for efeat for the 7the 7thth Fleet within the next five years.Fleet within the next five years.

South Korea, despite its status as a military ally, is less so eSouth Korea, despite its status as a military ally, is less so economically, conomically, especially when it comes to lucrative trade with the Chinese. Tespecially when it comes to lucrative trade with the Chinese. The Cho he Cho shipping magnate family has made it known to whom and where theishipping magnate family has made it known to whom and where their r loyalties lie, and will no doubt allow itself to follow China inloyalties lie, and will no doubt allow itself to follow China in a potential and a potential and sudden unavailability of ships. This is one of the core reasonssudden unavailability of ships. This is one of the core reasons South Korea South Korea did not make the final cut among Asian nations, inclusive of Inddid not make the final cut among Asian nations, inclusive of Indonesia, onesia, Thailand, Malaysia, Taiwan and Japan, considered for a BCThailand, Malaysia, Taiwan and Japan, considered for a BC--17 epicenter.17 epicenter.

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Global Supply Chain Global Supply Chain Vulnerabilities (contVulnerabilities (cont’’d)d)

““We are seeing increasing indications that AlWe are seeing increasing indications that Al--Qaeda is preparing Qaeda is preparing to strike U.S. interests abroad. to strike U.S. interests abroad. ‘‘Worldwide CautionWorldwide Caution’’ is being issued is being issued to remind U.S. citizens of the continuing threat that they may bto remind U.S. citizens of the continuing threat that they may be a e a target of terrorist actions, even after the anniversary date of target of terrorist actions, even after the anniversary date of the the September 11 attacks and to add the potential threats to September 11 attacks and to add the potential threats to maritimemaritimeinterests.interests.”” –– U.S. Department of State, Oct 2003U.S. Department of State, Oct 2003

““In Recent decades, the AsiaIn Recent decades, the Asia--Pacific region has followed its main Pacific region has followed its main trade partners in North America and Europe in deregulating and trade partners in North America and Europe in deregulating and encouraging freer trade. After the terrorist plots and bombingsencouraging freer trade. After the terrorist plots and bombings in in Indonesia and other parts of Southeast Asia, the region and its Indonesia and other parts of Southeast Asia, the region and its leading trade partners leading trade partners must tighten security at sea, in ports and in must tighten security at sea, in ports and in other parts of the logistic supply chain that delivers goods on other parts of the logistic supply chain that delivers goods on a a justjust--inin--time, justtime, just--enough basis. This supply chain has become enough basis. This supply chain has become critical to modern manufacturing around the world.critical to modern manufacturing around the world.””--New Zealand Herald, Jan 02New Zealand Herald, Jan 02

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Aftermath of AlAftermath of Al--Qaeda attack on the French oil tanker Qaeda attack on the French oil tanker LimburgLimburg using an explosivesusing an explosives--laden small boat laden small boat

---- October 2002October 2002

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A New Threat: IranA New Threat: Iran’’s Acquisition s Acquisition of Shkval Rocket Torpedo of Shkval Rocket Torpedo

Technology Technology (An ability to close oil supply (An ability to close oil supply --critical Strait of Hormuz?)critical Strait of Hormuz?)

““

““It can be assumed that Russian developed rocket torpedo technoloIt can be assumed that Russian developed rocket torpedo technology recently gy recently tested by Iran at underwater speeds of 223 mph, and theoreticalltested by Iran at underwater speeds of 223 mph, and theoretically up to the y up to the

speed of sound owing to gasspeed of sound owing to gas--plasmaplasma--envelopment of projectileenvelopment of projectile--induced induced coefficient of friction elimination, will soon find its way intocoefficient of friction elimination, will soon find its way into the weapons the weapons

caches of Alcaches of Al--Qaeda and other terrorist operations. Thus, an expanded, clear Qaeda and other terrorist operations. Thus, an expanded, clear and present danger to maritime shipping interests. At present, and present danger to maritime shipping interests. At present,

countermeasures even for naval vessels are virtually noncountermeasures even for naval vessels are virtually non--existentexistent””

---- National Security Strategist Dr. Sheila Ronis, President, National Security Strategist Dr. Sheila Ronis, President, The University Group, Inc.The University Group, Inc.

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Dominance of Heavy and Outsize Market by Dominance of Heavy and Outsize Market by ANAN--124 Ruslan Commercialized Version of 124 Ruslan Commercialized Version of

Military AirlifterMilitary Airlifter““In building the Ruslans, Antonov stumbled (not really; In building the Ruslans, Antonov stumbled (not really; Boeing research identified the HOM as viable in 1993) on a Boeing research identified the HOM as viable in 1993) on a niche market that is both growing (roughly .5 billion in niche market that is both growing (roughly .5 billion in 2004) and not well2004) and not well--served by the major Western aircraft served by the major Western aircraft makers. Boeing Co.makers. Boeing Co.’’s biggest cargo aircraft, the 747s biggest cargo aircraft, the 747--400, is 400, is roughly the size of the Ruslan. But the Boeing plane is roughly the size of the Ruslan. But the Boeing plane is designed to ship containers and other standarddesigned to ship containers and other standard--sized sized commercial loads. Those with special needs, such as an air commercial loads. Those with special needs, such as an air force shipping helicopters, prefer the Antonovforce shipping helicopters, prefer the Antonov’’s outsized s outsized loading ramps and ability to land at illloading ramps and ability to land at ill--equipped airports equipped airports and other rough airportsand other rough airports…… Relying on Vladimir PutinRelying on Vladimir Putin’’s s Russia or politically unsettled Ukraine worries Jaap de Hoop Russia or politically unsettled Ukraine worries Jaap de Hoop Scheffer, NATOScheffer, NATO’’s Secretarys Secretary--General. General. ‘‘We have to phone We have to phone Antonov or we have to phone his Russian counterpartAntonov or we have to phone his Russian counterpart’’ to to get transport planes,get transport planes,…… and thatand that’’s a situation I do not like.s a situation I do not like.’’ ---- The Wall Street Journal January 19, 2005The Wall Street Journal January 19, 2005

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Antonov ANAntonov AN--124 124 ““RuslanRuslan””

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National Security ConcernsNational Security Concerns……““The integral role aerospace plays in [the United States] economyThe integral role aerospace plays in [the United States] economy, , ……security, security, ……mobility, and mobility, and ……values makes global leadership in values makes global leadership in aviation and space a national imperative.aviation and space a national imperative.””[1][1] As the United States As the United States stands stands ““dangerously close to squandering the advantage dangerously close to squandering the advantage bequeathed to [it] by prior generations of aerospace leaders,bequeathed to [it] by prior generations of aerospace leaders,”” [2][2]GHH, LLC, is convinced along with its strategic partners, that GHH, LLC, is convinced along with its strategic partners, that ““it is it is essential to [this countryessential to [this country’’s] international competitiveness in the s] international competitiveness in the aerospace industry (and the commercial and trade advantages aerospace industry (and the commercial and trade advantages that derive from that position) that US companies manufacture that derive from that position) that US companies manufacture and operate aircraft, such as the BCand operate aircraft, such as the BC--17, that can penetrate the 17, that can penetrate the relatively untapped air cargo markets of the future.relatively untapped air cargo markets of the future.””

““It is not a matter of if we will fight the Chinese, but whenIt is not a matter of if we will fight the Chinese, but when””[3] [3]

[1][1] Commission on the Future of the United States Aerospace IndustryCommission on the Future of the United States Aerospace Industry, Final , Final Report, 2002, p. vi. Report, 2002, p. vi. [2][2] IbidIbid.. [3] DoD internal[3] DoD internal

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Global Heavylift Holdings, LLC Global Heavylift Holdings, LLC MissionMission

Global Heavylift Holdings, LLC, Global Heavylift Holdings, LLC, the first US companythe first US company established to established to demonstrate the viability of a change in policy towards expandeddemonstrate the viability of a change in policy towards expandedgovernment/industry collaboration that is routine among major government/industry collaboration that is routine among major international trading partners. Indeed, it is collaborative effointernational trading partners. Indeed, it is collaborative efforts rts such as these that brought about the Erie Canal, Americasuch as these that brought about the Erie Canal, America’’s s railroads, the Civilian Nuclear Program and the Space Program, railroads, the Civilian Nuclear Program and the Space Program, which no private entity could have brought about on its own. Andwhich no private entity could have brought about on its own. And, , through a holistic and systemic approach utilizing best practicethrough a holistic and systemic approach utilizing best practices s within the disciplines of systems science along with its strategwithin the disciplines of systems science along with its strategic ic partners in industry and government, it will and has:partners in industry and government, it will and has:

Created the architecture for global infrastructure of a new Created the architecture for global infrastructure of a new American controlled heavylift industry.American controlled heavylift industry.Execute a plan to profitably become the largest global company iExecute a plan to profitably become the largest global company in n the heavylift industry by supporting global industry and Federalthe heavylift industry by supporting global industry and FederalDepartments and Agencies from DoD to NASA.Departments and Agencies from DoD to NASA.Modify the global supply chain management efforts throughout Modify the global supply chain management efforts throughout U.S. industry to include air augmentation.U.S. industry to include air augmentation.

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Global Heavylift Holdings, LLC Global Heavylift Holdings, LLC Mission (contMission (cont’’d)d)

Global HeavyLift Holdings, Global HeavyLift Holdings, wonwon’’t:t:

Work with financial institutions seeking to perpetuate the old Work with financial institutions seeking to perpetuate the old aircraft acquisition model assigning virtually all risk to the aircraft acquisition model assigning virtually all risk to the customer rather than a balanced partnership seeking a common customer rather than a balanced partnership seeking a common goal as is dictated by this initiative. That model is broken as goal as is dictated by this initiative. That model is broken as the the industry landscape littered with the carcasses of failed and faiindustry landscape littered with the carcasses of failed and failing ling US air carriers irrefutably demonstrates.US air carriers irrefutably demonstrates.

Work with States or countries choosing to look the other way in Work with States or countries choosing to look the other way in terms of economic development policies that embrace, rather thanterms of economic development policies that embrace, rather thanrepel, clearly predatory marketing strategies that are a repel, clearly predatory marketing strategies that are a manifestation of the economic war, in the Sun Tzu sense, waged manifestation of the economic war, in the Sun Tzu sense, waged against this countryagainst this country’’s industrial base. The current state of our s industrial base. The current state of our automotive and aerospace sectors, having too long ignored this automotive and aerospace sectors, having too long ignored this reality, confirms this contention. Indeed, our mission to potenreality, confirms this contention. Indeed, our mission to potential tial epicenter states and countries is not about adding building squaepicenter states and countries is not about adding building square re footage and warm bodies to announce in the latest economic footage and warm bodies to announce in the latest economic development press release, but about making those locales the development press release, but about making those locales the global air operations Epicenter of a new and powerful globeglobal air operations Epicenter of a new and powerful globe--spanning industry that will set and change economic and geospanning industry that will set and change economic and geo--political policies for decades.political policies for decades.

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A Funny Thing Happened on The Way to A Funny Thing Happened on The Way to The (Blog) ForumThe (Blog) Forum…… ((From a Canadian Taxpayer From a Canadian Taxpayer

Against Purchase of CAF CAgainst Purchase of CAF C--17s)17s)So who is this Global HeavyLift Holding, LLC? The article tells So who is this Global HeavyLift Holding, LLC? The article tells us.us.““GHH is a strategic air transport solutions entity that was born GHH is a strategic air transport solutions entity that was born of a multiof a multi--year public/privateyear public/private (note: (note: read DoD/Boeing)read DoD/Boeing) effort among forward thinkers in both the private sector and goeffort among forward thinkers in both the private sector and government to vernment to mitigate emerging and observable vulnerabilities in the U.S. indmitigate emerging and observable vulnerabilities in the U.S. industrial base global supply chain. ustrial base global supply chain. Such vulnerabilities are represented by the fact that no oceanSuch vulnerabilities are represented by the fact that no ocean--borne shipping is in U.S. hands at borne shipping is in U.S. hands at present, thus potentially subjecting American corporations, espepresent, thus potentially subjecting American corporations, especially automotive, and their global cially automotive, and their global operations to the whims and perhaps economically hostile activitoperations to the whims and perhaps economically hostile activities of and by foreign governments. ies of and by foreign governments. Add to this the risk of terrorist activities, which have, accordAdd to this the risk of terrorist activities, which have, according to the Department of Homeland ing to the Department of Homeland Security, targeted maritime operations; i.e., ships, ports and oSecurity, targeted maritime operations; i.e., ships, ports and ocean containers"cean containers"“”“”Defense Logistics Agency (DLA) listed, it is the goal of GHH andDefense Logistics Agency (DLA) listed, it is the goal of GHH and its strategic partners around the its strategic partners around the planet to work with key logistics personnel within these corporaplanet to work with key logistics personnel within these corporations and government agencies to tions and government agencies to conceptualize, craft and structure longconceptualize, craft and structure long--term global supply chain alternative transportation term global supply chain alternative transportation methodologies through continuous methodologies through continuous ---- not stop gap or emergency not stop gap or emergency ---- air augmentation solutions. Its air augmentation solutions. Its most important mission, however, has been in the comost important mission, however, has been in the co--development of global architecture for development of global architecture for infrastructure of a new American controlled industry, Heavylift,infrastructure of a new American controlled industry, Heavylift, utilizing the excellent airlift utilizing the excellent airlift performance characteristics of the Boeing BCperformance characteristics of the Boeing BC--17.17.””

There you have it. Global Heavylift Holdings LLC is a US GovernmThere you have it. Global Heavylift Holdings LLC is a US Government funded ploy to provide for the ent funded ploy to provide for the survival of the Boeing Long Beach plant where the Csurvival of the Boeing Long Beach plant where the C--17 is built with US taxpayer money17 is built with US taxpayer money (but not (but not with the US Defence budget) in order to provide US taxpayerwith the US Defence budget) in order to provide US taxpayer--funded subsidized airlift to cater to funded subsidized airlift to cater to US government airlift needs. It would be revealing and ironic ifUS government airlift needs. It would be revealing and ironic if they did flights into Iraq for DoD, they did flights into Iraq for DoD, since they claim to exist to cater to the oil industry (I'm eagesince they claim to exist to cater to the oil industry (I'm eager to find out how ITAR will have to rer to find out how ITAR will have to re--invent itself to invent itself to authoriseauthorise those flights)those flights)

There used to be a company that was very similar to this new oneThere used to be a company that was very similar to this new one, the infamous Florida , the infamous Florida based based Air AmericaAir America. (Not everyday you. (Not everyday you’’re accused of being the CIA!)re accused of being the CIA!)

……

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Global Heavylift Holdings, LLC Global Heavylift Holdings, LLC Current ObjectivesCurrent Objectives

Obtain bases of operations globally to function as GHH Obtain bases of operations globally to function as GHH Epicenters in the US, Europe and AsiaEpicenters in the US, Europe and Asia--Pacific.Pacific.

FollowFollow--up with companies involved in case study up with companies involved in case study development and craft pathways for integration of BCdevelopment and craft pathways for integration of BC--17 17 into supply chain architecture within let projects for oil, gas,into supply chain architecture within let projects for oil, gas,gold, diamonds and national infrastructuregold, diamonds and national infrastructure

Continuance of efforts to implement permanent global Continuance of efforts to implement permanent global supply chain air augmentation (Bsupply chain air augmentation (B--747) initiative resulting 747) initiative resulting from 4 years of interaction with Fortune 25 corporations, from 4 years of interaction with Fortune 25 corporations, and presentations to logistics personnel in early 2004. The and presentations to logistics personnel in early 2004. The structure of these presentations result from a conjoined structure of these presentations result from a conjoined effort of GHH, its Global Logistics and air operations effort of GHH, its Global Logistics and air operations partners.partners.Obtain funding for the initial CObtain funding for the initial C--1717’’s.s.

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Veteran Champion of Global Supply Chain Veteran Champion of Global Supply Chain Permanent Air Augmentation and A Major Step Permanent Air Augmentation and A Major Step

in Mitigating its Vulnerabilities:in Mitigating its Vulnerabilities:BB--747747

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The Future of Heavy and The Future of Heavy and OutsizeOutsize……BCBC--1717

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Boeing BCBoeing BC--1717

Background InformationBackground Information

The BCThe BC--17 (formerly known as the MD17 (formerly known as the MD--17) offers new air cargo 17) offers new air cargo delivery capabilities ideally matched to the global changes delivery capabilities ideally matched to the global changes occurring in logistics and manufacturing. Manufacturers and occurring in logistics and manufacturing. Manufacturers and shippers of all types are being challenged for time definite shippers of all types are being challenged for time definite delivery to global markets. delivery to global markets. Often these are emerging markets Often these are emerging markets located in remote locations and characterized by limited located in remote locations and characterized by limited transportation infrastructure. Worldwide demand for heavy and transportation infrastructure. Worldwide demand for heavy and outsize goods, defined as too large to fit through the doors of outsize goods, defined as too large to fit through the doors of conventional freighter aircraft, is increasingconventional freighter aircraft, is increasing. High valued products . High valued products including satellites, construction equipment, and power generatiincluding satellites, construction equipment, and power generating ng equipment require special handling. Regardless of cargo size, equipment require special handling. Regardless of cargo size, there is an increasing requirement for rapid delivery to satisfythere is an increasing requirement for rapid delivery to satisfycustomers. customers.

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The Future: BCThe Future: BC--1717This service time provides competitive advantage and minimizes This service time provides competitive advantage and minimizes inventory, insurance, transinventory, insurance, trans--shipment and handling costs as well shipment and handling costs as well as other elements of the total logistics cost chain. With the BCas other elements of the total logistics cost chain. With the BC--17, 17, logistics planners have new options for picking up products closlogistics planners have new options for picking up products closer er to the manufacturing source and delivering them nearer the finalto the manufacturing source and delivering them nearer the finaldestination. destination. The unique design characteristics of the BCThe unique design characteristics of the BC--17, including the 17, including the incorporation of powered lift technology, enable operations at incorporation of powered lift technology, enable operations at smaller airports unavailable to today's large conventional cargosmaller airports unavailable to today's large conventional cargoaircraft. Many developing countries have large infrastructure aircraft. Many developing countries have large infrastructure projects (power plants, waterways, etc.) that are not situated projects (power plants, waterways, etc.) that are not situated near existing seaports, major airports, major roads or railways.near existing seaports, major airports, major roads or railways. In In contrast, developed economies face increasing congestion issues contrast, developed economies face increasing congestion issues at major international airports. The BCat major international airports. The BC--17 is the only aircraft that 17 is the only aircraft that can capitalize on these opportunities and dramatically lessen thcan capitalize on these opportunities and dramatically lessen the e requirements for cargo preparation, ground transportation and requirements for cargo preparation, ground transportation and loading and unloading.loading and unloading.

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BCBC--17: New Levels of Flexibility 17: New Levels of Flexibility and Airborne Athleticismand Airborne Athleticism

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Undeniable Athleticism in The Sky or On The Ground…

The projected emergence of the Heavy and Outsized (HOM) market and a profound awareness that substantial savings could be realized by reducing supply chain systemic complexities historically endemic to remotely placed but extremely valuable oil, gas, mining and other infrastructure development projects worldwide, has created substantial opportunity for the BC-17, a commercialized version of the stunningly capable Boeing C-17 Globemaster III military arilifter. Defined as the “Project Related Business”, the airborne athleticism of the BC-17 is ideal to support this market and has lead to a detailed project market analysis. Since inception of this initiative, much has changed in the way of national and global security concerns both militarily and economically, and this market analysis, used as a business base in this business plan is reflective of these new realities.

Fwd

Fwd

Backing

3-Point (Star) Turn80 ft (24.4 m)

Minimum Turn(Asymetric Thrust + Light Differential Braking)

116 ft (35.4 m)

Normal Steering Turn143 ft (43.6 m)

NormalSteering

Minimum

180° Turns

Star Turn

Normal Steering Turn143 ft (43.6m)

Minimum Turn(Asymmetric Thrust+Light

Differential Braking)116 ft (35.4m)

3-Point Star Turn80 ft (24.4m)

Narrow TaxiwaysTight Turns

Ground Servicing

Turn Center

90 ft (27.4 m)

40 ft (12.2 m)

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BCBC--17 Performance17 Performance

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

300 320 340 360 380 400 420 440 460 480 500 520 540 560 580 600

Weight (X 1,000 lb)

Fie

ld L

eng

th (f

t)

915

1,115

1,315

1,515

1,715

1,915

2,115

2,315

2,515

2,715

136 156 176 196 216 236 256

Weight (x 1,000 kg)

Fie

ld L

eng

th (m

)

Pending FAA approval

BC-17X Takeoff Field Length

Wet

Dry

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BCBC--17 Performance17 Performance

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500

300 320 340 360 380 400 420 440 460 480 500

Weight (X 1,000 lb)

Fie

ld L

eng

th (f

t)

763

963

1,163

1,363

1,563

1,763

1,963

136 156 176 196 216

Weight (x 1,000 kg)

Fie

ld L

eng

th (m

)

Pending FAA approval

BC-17X Landing Field LengthSteep Approach

Wet

Dry

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BCBC--17 Performance17 Performance

““The only aircraft that might The only aircraft that might come close to the performance of come close to the performance of the Cthe C--17 is a 489kt Sikorsky 17 is a 489kt Sikorsky Skycrane with 87 ton capacity Skycrane with 87 ton capacity and 2500nm rangeand 2500nm range””

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History and Design of the History and Design of the BCBC--1717

The unparalleled design of the BCThe unparalleled design of the BC--17 ideally matches the expanding needs 17 ideally matches the expanding needs of the global commercial market. In addition to accommodating of the global commercial market. In addition to accommodating approximately 87 tons (79 metric tons) in its 20,900 cubicapproximately 87 tons (79 metric tons) in its 20,900 cubic--foot (592 cubicfoot (592 cubic--meter) cargo bay that is wide enough for two rows of large truckmeter) cargo bay that is wide enough for two rows of large trucks side by s side by side, this highly versatile aircraft can take off, land, deliverside, this highly versatile aircraft can take off, land, deliver its cargo, and its cargo, and turn around on austere runways approximately 4,000 feet (1,200 mturn around on austere runways approximately 4,000 feet (1,200 meters) eters) long and 90 feet (28 meters) wide. long and 90 feet (28 meters) wide.

Moreover, landing in short distances is not the only capability Moreover, landing in short distances is not the only capability that makes that makes the BCthe BC--17 uniquely suitable to austere airfields. Powered by four Prat17 uniquely suitable to austere airfields. Powered by four Pratt & t & Whitney PW2000 series turbofans with full reverse capabilities aWhitney PW2000 series turbofans with full reverse capabilities and a nd a combined 161,760 lbs (719.6kN) of thrust, the BCcombined 161,760 lbs (719.6kN) of thrust, the BC--17 has a cruise speed of 17 has a cruise speed of 563 mph (906 kmph, or 489 knots) and a range of 2,500 nautical m563 mph (906 kmph, or 489 knots) and a range of 2,500 nautical miles iles (4,630 km) at maximum payload without refueling. The engine thr(4,630 km) at maximum payload without refueling. The engine thrustust--reversing system can back the BCreversing system can back the BC--17 up a 2 percent grade fully loaded, 17 up a 2 percent grade fully loaded, allowing the aircraft to park forward in tight ramp spaces, offallowing the aircraft to park forward in tight ramp spaces, off--load, and back load, and back out when the crew is ready to depart. This system also eliminatout when the crew is ready to depart. This system also eliminates the jet es the jet blast and engine noise danger to crew members and equipment moviblast and engine noise danger to crew members and equipment moving ng behind the aircraft during offbehind the aircraft during off--loading and onloading and on--loading operations with the loading operations with the engines running. In addition, the thrustengines running. In addition, the thrust--reversing engines are mounted well reversing engines are mounted well above the ground. This design feature, combined with the high wabove the ground. This design feature, combined with the high wing, directs ing, directs the exhaust up and forward, greatly reducing blowing debris and the exhaust up and forward, greatly reducing blowing debris and the the potential for foreign objects to be ingested by the enginespotential for foreign objects to be ingested by the engines

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History and Design, contHistory and Design, cont’’dd..[1][1] Furthermore, ready access to all areas of the aircraft withoutFurthermore, ready access to all areas of the aircraft without complicated or complicated or sophisticated ground equipment makes the BCsophisticated ground equipment makes the BC--17 easy to maintain in austere airfields. 17 easy to maintain in austere airfields. (For example, a self(For example, a self--jacking capability allows for tire and brake changes on the mainjacking capability allows for tire and brake changes on the mainlanding gear without having to rely on standard aircraft jacks, landing gear without having to rely on standard aircraft jacks, and fuel boost pumps can and fuel boost pumps can be removed and replaced without debe removed and replaced without de--fueling and purging the fuel tanks.)fueling and purging the fuel tanks.)[2][2]

The CThe C--1717’’s rolls roll--on/rollon/roll--off cargo capabilities allow very large and heavy military off cargo capabilities allow very large and heavy military equipment to be loaded quickly and efficiently.equipment to be loaded quickly and efficiently.The United States Air Force has been taking advantage of the extThe United States Air Force has been taking advantage of the extraordinary capabilities raordinary capabilities of the BCof the BC--1717’’s military variant, the Cs military variant, the C--17, for over a decade. The C17, for over a decade. The C--17 took off on its 17 took off on its maiden flight on September 15, 1991, and the first production momaiden flight on September 15, 1991, and the first production model was delivered to del was delivered to Charleston Air Force Base, South Carolina, on June 14, 1993. SiCharleston Air Force Base, South Carolina, on June 14, 1993. Since the first Cnce the first C--17 17 squadron was declared operationally ready on January 17, 1995, tsquadron was declared operationally ready on January 17, 1995, the Air Forcehe Air Force’’s Cs C--17 17 fleet has logged over 400,000 flight hours. Its missions have ifleet has logged over 400,000 flight hours. Its missions have included flying troops, ncluded flying troops, equipment, and humanitarian aid to Operation Joint Endeavor in Bequipment, and humanitarian aid to Operation Joint Endeavor in Bosnia, the Allied Force osnia, the Allied Force Operation in Kosovo, the war on terrorism in Afghanistan, and OpOperation in Kosovo, the war on terrorism in Afghanistan, and Operation Iraqi Freedom. eration Iraqi Freedom. The USAFThe USAF’’s initial contract with McDonnell Douglas/Boeing was for 120 Cs initial contract with McDonnell Douglas/Boeing was for 120 C--17s to be 17s to be delivered through 2004, but in early 2002 the order was increasedelivered through 2004, but in early 2002 the order was increased to 180 planes through d to 180 planes through 2008. The wisdom of this decision was borne out when the aircra2008. The wisdom of this decision was borne out when the aircraft proved indispensable ft proved indispensable during the war on terrorism in Afghanistan and Operation Iraqi Fduring the war on terrorism in Afghanistan and Operation Iraqi Freedom. Current AF reedom. Current AF data outlines the need for 300 or more airlifters to meet currendata outlines the need for 300 or more airlifters to meet current and projected needs, t and projected needs, especially in the unstable world of asymmetric warfare wherein especially in the unstable world of asymmetric warfare wherein ““Rapid DeploymentRapid Deployment””takes on a new and urgent definition. A role for which no othertakes on a new and urgent definition. A role for which no other aircraft in the world is so aircraft in the world is so uniquely suited besides Cuniquely suited besides C--17.17.

[1][1] The Boeing Company, The Boeing Company, CC--17 Globemaster III: Technical Description and Planning 17 Globemaster III: Technical Description and Planning GuideGuide, 2002, p. 2, 2002, p. 2--1.1.[2][2] Ibid, p. 6Ibid, p. 6--11..

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History and design, contHistory and design, cont’’ddIn May of 1995, the CIn May of 1995, the C--17 was awarded the Collier Trophy for the 17 was awarded the Collier Trophy for the top aeronautical achievement of the year, and on February 4, top aeronautical achievement of the year, and on February 4, 1999, President Clinton presented the Malcolm Baldrige National 1999, President Clinton presented the Malcolm Baldrige National Quality Award to the manufacturer, The Boeing Company Airlift Quality Award to the manufacturer, The Boeing Company Airlift and Tanker Program. During routine flight testing at Edwards Aiand Tanker Program. During routine flight testing at Edwards Air r Force Base in 2001, the CForce Base in 2001, the C--17 set 22 world records, including 17 set 22 world records, including payload to altitude, time to climb, and short takeoff and landinpayload to altitude, time to climb, and short takeoff and landing g mark. (The aircraft successfully took off and landed in less thamark. (The aircraft successfully took off and landed in less than n 1,400 feet while carrying a payload of 44,000 lbs to altitude.) 1,400 feet while carrying a payload of 44,000 lbs to altitude.) In In subsequent testing, the Csubsequent testing, the C--17 set 11 more records pending 17 set 11 more records pending approval, bringing the total number of world records to 33.approval, bringing the total number of world records to 33.

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The Model T Allowed The Model T Allowed Henry Ford and Detroit to Lay Henry Ford and Detroit to Lay

Claim to Claim to ““Putting The World On Putting The World On WheelsWheels”…”…..

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The CThe C--17/BC17/BC--17 May Allow Designated 17 May Allow Designated U.S.,UK and AsiaU.S.,UK and Asia--based Air Ops based Air Ops

Epicenters to Lay Claim to Epicenters to Lay Claim to ““Putting The Putting The World World –– And Industry And Industry –– On Heavylift On Heavylift

WingsWings””

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GHH Global Hubs: U.S., Europe, GHH Global Hubs: U.S., Europe, Asia (SAM Missions)Asia (SAM Missions)

)

(8)

(6&7)

(5)(8)

(3)

(5)

(8)

(5)

(8)

(8)

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GHH Global Hubs ContGHH Global Hubs Cont’’d d (HOM Missions)(HOM Missions)

Rt 2

Rt 3

Rt 4

Rt 5

Rt 6

Rt 7

Rt 9

Rt 17

Rt 8&80

Rt 300

Rt 4

Rt 30

Rt 30

(5)

(Aircraft #)

(5)

(1)(2)

(4)

(7)

(7)

(8)

(7)

(4)

Rt 8&80

(1)

(2)

(8)

(3)

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4141

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Demilitarization of BCDemilitarization of BC--1717Considering the dual role of BCConsidering the dual role of BC--17, that is to say, its 17, that is to say, its instant availability in times of national emergency or instant availability in times of national emergency or disaster relief/humanitarian efforts, it is recommended disaster relief/humanitarian efforts, it is recommended ––and acknowledged as a viable approach and acknowledged as a viable approach –– that demil is at that demil is at most modest. I.e.; it is not necessary to remove fuel tank most modest. I.e.; it is not necessary to remove fuel tank armor designed to withstand a 23mm round; it is not armor designed to withstand a 23mm round; it is not necessary to remove military radios as they can simply be necessary to remove military radios as they can simply be locked away; no need to remove aerial refueling plumbing locked away; no need to remove aerial refueling plumbing –– fitting a plate over the boom aperture will suffice, and fitting a plate over the boom aperture will suffice, and which can be removed in 45 minutes; no need to remove which can be removed in 45 minutes; no need to remove infrared antiinfrared anti--missile countermeasures, considering they will missile countermeasures, considering they will become standard issue to commercial airliners globally near become standard issue to commercial airliners globally near term. term. The rear lift gate, however, will be deThe rear lift gate, however, will be de--energized to prevent energized to prevent inin--flight opening, and thus precludes Da Nangflight opening, and thus precludes Da Nang--type touch type touch and goes! and goes!

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SPACE PROGRAMSPACE PROGRAM

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CEV/CLV IN LUNAR ORBITCEV/CLV IN LUNAR ORBIT

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Return To The Moon and Mars Return To The Moon and Mars Mission: A USD 3Trillion EndeavorMission: A USD 3Trillion Endeavor

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CEV AND BCCEV AND BC--17: SPACE 17: SPACE PROGRAM SYMBIOSISPROGRAM SYMBIOSIS

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Next StepsNext Steps……** We are prepared to designate our US, UK and Asia Air We are prepared to designate our US, UK and Asia Air

operations epicenter locales in a matter of days.operations epicenter locales in a matter of days.

** Move as quickly as possible relative to issuance of a Move as quickly as possible relative to issuance of a 10.8 billion (30 new and/or 60 10.8 billion (30 new and/or 60 ““AA”” model Cmodel C--17s) 17s) triple and simultaneous private equity raise for triple and simultaneous private equity raise for second quarter 2007 via a consortium/syndicate of second quarter 2007 via a consortium/syndicate of financial institutions created by lead bank financial institutions created by lead bank

** Expect positive developments relative to issuance of Expect positive developments relative to issuance of necessary Congressional language permitting resale necessary Congressional language permitting resale of first generation Cof first generation C--17s to private sector (GHH, LLC) 17s to private sector (GHH, LLC) by AFby AF

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Next Steps (contNext Steps (cont’’d)d)Continued push for Far 21.27 exemption for Continued push for Far 21.27 exemption for BCBC--17 with FAA17 with FAA

Continued push for Congressional language Continued push for Congressional language to permit resale of to permit resale of ““AA”” model Cmodel C--17s, thus 17s, thus initializing process of initializing process of ““Transformational Transformational RecapitalizationRecapitalization”” that will forever change that will forever change the DoD acquisition processthe DoD acquisition process

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Latest Update From The Latest Update From The ‘‘HillHillAn allowance for 10 (203 total) additional An allowance for 10 (203 total) additional CC--17s and required funding is in the mark17s and required funding is in the mark--up for FY 2008 Defense Appropriations up for FY 2008 Defense Appropriations (HASC)(HASC)

Language potentially allowing for the Language potentially allowing for the neutralizing of a Congressional Mandate neutralizing of a Congressional Mandate requiring retrofit of C5A is also within this requiring retrofit of C5A is also within this markmark--up, effectively setting the stage for 30 up, effectively setting the stage for 30 or more additional Cor more additional C--17s moving closer to 17s moving closer to the 300+ aircraft needed for current and the 300+ aircraft needed for current and projected DoD airlift projected DoD airlift rquirementsrquirements..

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Failure is not an optionFailure is not an option……We are convinced that we are on the cusp We are convinced that we are on the cusp of a new industry that will not only of a new industry that will not only perpetuate and grow the value and perpetuate and grow the value and viability of the designated Stateviability of the designated State’’s s industrial base, but that of the nation.industrial base, but that of the nation.

We must not fail in this initiative, crafted We must not fail in this initiative, crafted to mitigate the acknowledged erosion of to mitigate the acknowledged erosion of the US industrial base, and which has the US industrial base, and which has strong support from industry and strong support from industry and government.government.

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The Requested Task for The Requested Task for SPEEDNEWS SPEEDNEWS Aerospace and Aerospace and Defense ConferenceDefense ConferenceParticipantsParticipants……1.1.Promote and encourage among your peers and clientele the validitPromote and encourage among your peers and clientele the validity and y and urgency of urgency of Air as a permanent component of Global Supply Chain transport Air as a permanent component of Global Supply Chain transport methodologiesmethodologies. The move from stopgap and emergency utilization by industry . The move from stopgap and emergency utilization by industry while dedicating 5while dedicating 5--10% of component movement to air will lower air costs and 10% of component movement to air will lower air costs and those associated with traditional modes of transportation througthose associated with traditional modes of transportation through economies of h economies of scale and reduction of systemic inefficiencies.scale and reduction of systemic inefficiencies.This can help stimulate growth in the air cargo industry for comThis can help stimulate growth in the air cargo industry for commodity freight modity freight utilizing traditional aircraft like 747 initially, thus contribuutilizing traditional aircraft like 747 initially, thus contributing to base ting to base stabilization and mitigating the very real threat of US industristabilization and mitigating the very real threat of US industrial base global al base global supply chain.supply chain.2.2. We would also appreciate your help in encouraging the FAA to grWe would also appreciate your help in encouraging the FAA to grant the ant the 21.27 exemption with or without Congressional language specific 21.27 exemption with or without Congressional language specific to this to this request.request.

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Weblog: Dr. Thomas P.M Barnett, former US Weblog: Dr. Thomas P.M Barnett, former US Naval War College Professor and author of Naval War College Professor and author of

““The PentagonThe Pentagon’’s New Map: War and Peace in s New Map: War and Peace in The 21The 21stst CenturyCentury”” 24 June 200424 June 2004

““Whether we like it or not, the world is indeed, at war. ObviousWhether we like it or not, the world is indeed, at war. Obviously, not war ly, not war in the traditional sense in the traditional sense –– it is asymmetric it is asymmetric –– but war just the same. but war just the same. According to my colleague Dr. Sheila Ronis, a national security According to my colleague Dr. Sheila Ronis, a national security strategist strategist ‘‘Global war begins with economic crises such as the major problemGlobal war begins with economic crises such as the major problems in s in Japan, the overheating of the China economy due to its insatiablJapan, the overheating of the China economy due to its insatiable, and now e, and now unstoppable appetite for raw material, and the continued instabiunstoppable appetite for raw material, and the continued instability within lity within the Middlethe Middle--East, compounded by the uncertainties of Iraqi War outcome. East, compounded by the uncertainties of Iraqi War outcome. We are right now contending with macroWe are right now contending with macro--economic trends that are economic trends that are outstripping and outpacing any efforts to keep them in check. Coutstripping and outpacing any efforts to keep them in check. Crises not rises not dissimilar to these in the 1930s directly led to World War II. dissimilar to these in the 1930s directly led to World War II. Very similar Very similar and very dangerous. [Dr. W. Edwards] Deming once told me that Jaand very dangerous. [Dr. W. Edwards] Deming once told me that Japan went pan went to war because they thought their population was about to starveto war because they thought their population was about to starve. Their . Their backs were to the wall, and they felt they had no choice but to backs were to the wall, and they felt they had no choice but to pursue this pursue this course in view of then existent US economic policies.course in view of then existent US economic policies.

“’“’ War is often the inevitable aftermath of negative economic forcWar is often the inevitable aftermath of negative economic forces on es on nations, and we have to be mindful of the difficulties facing munations, and we have to be mindful of the difficulties facing multiple nations ltiple nations simultaneously, now, as then. We are seeing in realsimultaneously, now, as then. We are seeing in real--time the viability of the time the viability of the ““corecore”” and and ““gapgap”” scenarios postulated by Dr. Barnett in his book scenarios postulated by Dr. Barnett in his book ““The The PentagonPentagon’’s New Map.s New Map.”” Moreover, the Chinese view the global pie as a zero Moreover, the Chinese view the global pie as a zero sum game; their win is a loss for the US in every category of thsum game; their win is a loss for the US in every category of the natione nation’’s s existence. However, if globalization is properly managed, the eexistence. However, if globalization is properly managed, the entire pie can ntire pie can grow. If it is not managed, thatgrow. If it is not managed, that’’s when the industrial base would collapse. s when the industrial base would collapse. Conversely, the enemy is not globalization, it is, rather, the lConversely, the enemy is not globalization, it is, rather, the lack of managing ack of managing it.it.

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Weblog Barnett (contWeblog Barnett (cont’’d)d)“’“’The statement, The statement, ‘‘So goes the economy, so goes So goes the economy, so goes the military mightthe military might’’ is axiomatic. A nonis axiomatic. A non--linearist linearist would say we are at the would say we are at the ‘‘tipping pointtipping point’’ and unless and unless clear and implementable strategies for clear and implementable strategies for preservation of the US industrial base as preservation of the US industrial base as represented by GM, Ford, Boeing, Lockheedrepresented by GM, Ford, Boeing, Lockheed--Martin, NorthropMartin, Northrop--Grumman, General Dynamics, Grumman, General Dynamics, Delphi and other core components emerge in the Delphi and other core components emerge in the very short term, its relative stability will very short term, its relative stability will disintegrate followed by the possible collapse of disintegrate followed by the possible collapse of the US economy.the US economy.’”’”

Prescient words, we thinkPrescient words, we think……

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Colleagues, it is June 1940 again, so we need and Colleagues, it is June 1940 again, so we need and welcome you aboard this mission to revitalize and welcome you aboard this mission to revitalize and

solidify Americasolidify America’’s industrial and transportations industrial and transportationleadershipleadership

The future is in our handsThe future is in our hands……

The Global HeavyLift TeamThe Global HeavyLift Team

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Global Heavylift Holdings, LLC Global Heavylift Holdings, LLC Initial Key PersonnelInitial Key Personnel

Myron D. Stokes, Managing PartnerMyron D. Stokes, Managing PartnerSheila R. Ronis, Ph.D., ConsultantSheila R. Ronis, Ph.D., ConsultantThomas H. Miner, MemberThomas H. Miner, MemberPete Sanderlin, GM Kalitta Air (Strategic Air Partner)Pete Sanderlin, GM Kalitta Air (Strategic Air Partner)Gilles SaintGilles Saint--Hilaire, Ph.D., ConsultantHilaire, Ph.D., ConsultantNorman W. Fishman, MemberNorman W. Fishman, MemberTarek Ballout, Director, Middle East OperationsTarek Ballout, Director, Middle East OperationsNasim Uddin, Ph.D., ConsultantNasim Uddin, Ph.D., ConsultantRobert E. Seaman IIIRobert E. Seaman IIIAbid Ghuman, ConsultantAbid Ghuman, ConsultantGabriella Barthlow, Executive AssistantGabriella Barthlow, Executive AssistantL. Jeantal Morris, Project CoordinatorL. Jeantal Morris, Project CoordinatorWayne H. Rassner, Agent of RecordWayne H. Rassner, Agent of Record

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Strategic PartnersStrategic Partners

Air: Kalitta (Michigan)Air: Kalitta (Michigan)Training: Air Force and BoeingTraining: Air Force and BoeingReal Estate Evaluation: Cushman & Real Estate Evaluation: Cushman & Wakefield (Mississippi, Michigan)Wakefield (Mississippi, Michigan)Counsel: Baker & McKenzie (Illinois)Counsel: Baker & McKenzie (Illinois)Strategic Visioning: University Strategic Visioning: University Group, Inc. (Michigan)Group, Inc. (Michigan)