The possible deal would give Boeing its eighth customer for the airlifter and extend the C-17 production line by about five weeks.
Boeing executives have long discussed Kuwait as a potential C-17 buyer, but the US Defense Security Cooperation Agency formally informed lawmakers about the possible transaction on 24 September.
The Kuwaiti air force needs a strategic airlifter for "relief support, humanitarian disaster and peacekeeping missions, as well as transporting dignitaries and cultural assets to various regional and international destinations", the DSCA notice says.
Boeing is also negotiating with India to buy 10 C-17s, with a contract signing possibly to coincide with President Barack Obama's planned visit to New Dehli in November.
The UK government is also interested in buying an eighth C-17, although the funding will be decided based on the outcome of its ongoing Strategic Defence and Security Review.
Further C-17 sales are also being proposed to other countries in the Middle East and Europe, and to South Africa.
However, Boeing says a production gap is still possible, given the slow process of closing military aircraft deals on the foreign market. The company is currently scheduled to deliver the last C-17 in September 2012.
The US Air Force has not asked for new C-17s in four years, but Congress has inserted funds to buy 43 more aircraft during that period. This year, the Air National Guard has listed a need for five C-17s worth $1.3 billion on its list of unfunded priorities.
(Flight Global - Aviation News)
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