B-17 Alliance Nears Goal to Secure Permanent Hangar for Lacey Lady Restoration

The B-17 Alliance Foundation, which is restoring Boeing B-17G Flying Fortress 44-85790 Lacey Lady in Salem, Oregon, is nearing a pivotal milestone: the opportunity to purchase the airport hangar where the aircraft is being rebuilt. Owning the facility would eliminate nearly $50,000 in annual rental costs and secure a long-term home for the project. With the funding goal now within reach, the organization is appealing to supporters to help close the final gap.

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Better known as the ‘gas station bomber’ this B-17 has been under slow but steady restoration for much of the past decade. Photo via B-17 Alliance Foundation
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It has been some time since our last update on the B-17 Alliance Foundation’s ambitious restoration of Boeing B-17G Flying Fortress 44-85790 Lacey Lady in Salem, Oregon. Thanks to Scott Thompson of Aero Vintage, we are able to share his latest report on the project, presented here with light editing. A significant development has emerged for the B-17 Alliance, which has been steadily working to return the former “gas station B-17” to airworthy condition. The organization now has a limited-window opportunity to purchase the airport hangar at Salem Municipal Airport where the restoration is underway.

The forward fuselage of Lacey Lady as seen in May 2025
The forward fuselage of Lacey Lady as seen in May 2025, showing significant progress between Stations 3 and 4, which house the cockpit and top turret. Over the past two years, major structural components have been completed and installed, with flight controls, seats, instrument panel frames, and other parts now being fitted for installation. A newly fabricated ‘turtle deck’ cockpit cover is also in the works and expected to arrive later this year for installation.

Securing ownership of the hangar would guarantee a permanent home for Lacey Lady and eliminate roughly $4,000 per month in rental expenses. Saving an estimated $48,000 per year would allow those funds to be redirected toward the aircraft’s restoration rather than facility costs. Thompson has chronicled the project’s progress on aerovintage.com, noting the steady, volunteer-driven work that has brought the airframe to its current stage. With the hangar purchase now in reach, the B-17 Alliance is appealing for additional support to close the remaining funding gap.

B 17 LAcey LAdy left wing
The left wing is being reassembled in its jig, with the front spar visible and ribs attached extending back to the rear spar. The restored nacelles will be reattached to the front spar as the wing is put back together. The underwing rib cutouts, faintly visible in the middle section of the wing, will house a large fuel tank once completed.

Those wishing to contribute can do so through the organization’s website. Even modest donations help move the effort forward. Thompson notes that he has already made his contribution and encourages others in the aviation community to join in ensuring a long-term home for Lacey Lady and the continued preservation of this historic Flying Fortress. To support this restoration with a donation, click HERE. 

B 17G Lacey Lady 44 85790 Many thanks indeed to Scott A. Thompson for allowing us to reproduce this article… his book, Final Cut: The Post-War B-17 Flying Fortress and Survivors as well as other titles are the gold standard when it comes to the airframe history it describes! Final Cut The Post War B 17 Flying Fortress and Survivors
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