Boeing C - 40 Clipper The Boeing C - 40 Clipper is a military version of the Boeing 737 - 700C airline transport . It is used by both the United States Navy and the United States Air Force . Design and development . C - 40A . The C - 40A Clipper provides critical logistics support to the United States Navy . Its flight deck features a flight management computer system with an integrated GPS . The C - 40A is compatible with future GATM / FANS operating environment ( RNP - 1 ) . It is RVSM capable . It has the Traffic Alert and Collision Avoidance System II on board . It also has an enhanced ground proximity warning system , predictive wind shear , head - up display and TACAN / UHF / IFF functions . The U . S . Navy Reserve , which operates and maintains the aircraft , was the first customer for the newest member of the Boeing 737 - 700C Next - Generation family . The Clipper was ordered by the U . S . Navy to replace its fleet of aging C - 9B Skytrain II s . The C - 40A is the first new logistics aircraft in 17 years to join the U . S . Navy Reserve . Currently , the Navy Reserve provides 100 percent of the Navy ' s worldwide in - theater medium and heavy airlift . The Clipper meets or exceeds international noise and environmental requirements that plague the current fleet of Naval Reserve C - 9s . It is also more fuel - efficient and offers increased range and payload capabilities . The 737 - 700C aircraft is certified to operate in an all - passenger ( 121 passengers ) , all - cargo or combination ( " combi " ) configuration that will accommodate up to three cargo pallets and 70 passengers on the main deck . The Navy purchased the airplanes using standard commercial practices , and ordered six of the 737 - 700C models . The first two of four aircraft were delivered on 21 April 2001 to Fleet Logistics Support Squadron Five Nine ( VR - 59 ) at the Naval Air Station / Joint Reserve Base Fort Worth , Texas . The remainder were delivered later in the year . The fifth and sixth aircraft were delivered to in August 2002 to VR - 58 at the Naval Air Station Jacksonville , Florida . A seventh one was acquired on 22 November 2004 , the eighth was in February 2005 , and the ninth was on 25 May 2006 that were delivered to VR - 57 at the Naval Air Station North Island , California . The Navy plans to purchase up to 23 additional Clippers as it continues to replace its aging fleet of C - 9B aircraft . The C - 40A provides superior fuel efficiency , range and payload and meets or exceeds international environmental and noise restrictions . C - 40B . The United States Air Force selected the C - 40B , a military version of the 737 - 700 Boeing Business Jet , to replace the aging fleet of C - 137 aircraft for U . S . combatant commanders . The Air Force awarded the medium lift contract in August 2000 . The 89th Airlift Wing acquired its first C - 40B aircraft in December 2002 . Both units are based at Andrews Air Force Base , Maryland . The 15th Airlift Wing , Hickam AFB , Hawaii , acquired its C - 40B for U . S . Pacific Command in February 2003 . The 86th Airlift Wing , Ramstein AB , Germany , acquired its C - 40B for U . S . Air Forces in Europe in December 2004 . The cabin area is equipped with a crew rest area , distinguished visitor compartment with sleep accommodations , two galleys and business class seating with worktables . The C - 40B is designed to be an " office in the sky " for senior military and government leaders . Communications are paramount aboard the C - 40B which provides broadband data / video transmit and receive capability as well as clear and secure voice and data communication . It gives combatant commanders the ability to conduct business anywhere around the world using on - board Internet and local area network connections , improved telephones , satellites , television monitors , and facsimile and copy machines . The C - 40B also has a computer - based passenger data system . C - 40C . The C - 40C is intended to replace the three aging C - 22s ( militarized Boeing 727s ) operated by the Air National Guard and National Guard Bureau to airlift personnel . By using commercial off - the - shelf acquisition practices and a new lease program for the C - 40C model , the Air Force reached a benchmark for aircraft procurement . The C - 40C was the first military aircraft to be acquired in this manner . The 201st Airlift Squadron , Washington , D . C . Air National Guard , acquired two C - 40C aircraft in October 2002 . The Air Force Reserve 932d Airlift Wing , Scott AFB , Illinois has acquired three C - 40C aircraft in 2007 .