The assembly started in the wing area, as wing spar sections were loaded into assembly fixtures. The airlifter is scheduled to be delivered to the Air Force in August 1998.

The start of assembly of this aircraft is significant for the Air Force, McDonnell Douglas and its workers, and more than 1,000 companies that supply parts for the C-17. In 1993, the U.S. Department of Defense threatened to cap C-17 production at 40 aircraft unless significant improvements could be made in schedule, quality and cost.

Through the use of Integrated Product Teams, the Air Force, McDonnell Douglas and its suppliers were able to put the program back on track. Each aircraft delivered from mid-1993 to the current time has been delivered early, and the quality of the delivered aircraft has increased dramatically. In addition, the cost of each aircraft has been reduced significantly, from an average of more than $300 million for the first 40 aircraft to $173 million for the 80 aircraft under the multi-year program.

Deputy Secretary of Defense John White announced on Nov. 3, 1995, that, after an extensive study, the Department of Defense had decided to complete the planned acquisition of a total of 120 aircraft. On May 31, 1996, the multi-year contract was signed.

Deliveries of C-17s under the current contract will continue through 2004, at production rates of up to 15 a year. The current production rate is eight a year.