McDonnell Puts Off First Flight of C-17 Jet Again : Aerospace: Final assembly and ground testing are taking longer than expected. A Senate aide says the firm has credibility, “but it is dwindling.”

McDonnell Douglas, already long past a series of deadlines for the first flight of its C-17 cargo jet, is not expected to get the aircraft in the air before the end of August and not until December in the worst case, according to recent assessments by defense officials.

The firm’s Douglas Aircraft unit in Long Beach has taken far longer than expected to complete the final assembly and ground testing of the first C-17 aircraft, company officials acknowledged.

McDonnell does not face direct financial penalties because of the most recent delays. But as an indicator of the overall program status, the lag is bad news. The firm is already losing an estimated $500 million on its existing C-17 contracts.

While first-flight delays are typical in the aircraft industry, the missed deadlines have eroded confidence in McDonnell at a time when the firm’s management capability is under sharp scrutiny by Congress and the Pentagon, congressional officials said Monday.

Originally, the aircraft was to have flown last year. In January, Douglas executives said it would fly in March. In May, they said June. After that deadline passed, officials projected the first flight would occur in July.

With just two days left this month, Douglas executives acknowledged that the C-17 will not fly for at least several weeks, since it has not even begun taxi tests.

“It sure is taking longer than I personally expected,” said Douglas Vice President David Swain, the C-17 program manager.

In recent weeks, a review team reporting to Under Secretary of Defense Donald Yockey made its own C-17 assessment. Some members concluded that, in a worst-case scenario, the aircraft might not fly until year-end, according to sources. Other experts close to the program say a flight in August is very unlikely.

The Air Force’s official position is that the C-17 will fly “this summer,” which officially ends Sept. 23. Swain said he remains confident that Douglas can meet that timetable.

Fuel leaks and engine problems are the latest “squawks,” in aerospace jargon, to hinder the effort. Douglas engineers recently tested the aircraft’s engines at 65% of power, revealing some hydraulic and electrical glitches, Swain said.

In addition, the fuel tanks leak. Swain said they must be drained and purged of fumes before workers can go in to seal some areas.

“Running through systems testing is taking longer than expected,” he said.

Congressional staff members are running short on patience. “There would be less concern about delays if they weren’t already a year behind schedule,” one Senate aide said. “The contractor still has some credibility, but it is dwindling.”

In its defense authorization bill for fiscal 1992, the Senate Armed Services Committee directed the Defense Department inspector general to review the military’s justification for the C-17. The bill would also establish funding restrictions based on Douglas’ performance.

(Separately, the Air Force issued Douglas a $1.14-billion contract for four additional C-17 aircraft Monday, the third lot of C-17 production awarded so far. It also issued a $22.7-million increase to a prior fixed-price contract on the C-17.)

Swain and other Douglas officials say they will not be pressured into making a first flight “until the aircraft is ready to fly.”

Even if they wanted to, others would be unlikely to concur.

Before the C-17 can fly, a large number of military and civilian review teams must give their blessing, including an “executive independent review team” from the Air Force’s aeronautical systems division. Officials from the Defense Logistics Agency must sign a massive document accepting delivery of the aircraft. A safety review from Edwards Air Force Base must give its blessing. And Air Force C-17 managers must also ensure that 1,265 key components are “air worthy” or “flight qualified.”

In March, the Air Force identified 75 contractual deficiencies on the C-17 that must be corrected or waived before the first flight.

“All the paper has to be right,” Col. Charles Siefert, deputy program manager, said in an interview. “The important thing is safety.”