• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • COMTECH banner

BATTLESPACE Updates

   +44 (0)77689 54766
   

  • Home
  • Features
  • News Updates
  • Defence Engage
  • Company Directory
  • About
  • Subscribe
  • Contact
  • Media Pack 2023

BOEING ANNOUNCES CONTROVESIAL TANKER DEAL

May 29, 2003 by

23 May 03. The Boeing Co., has won a $16bn contract from the Air Force on Friday to lease 100 modified 767 jetliners for use as refuelling tankers.

The deal is a major windfall for Boeing, but critics call it little more than corporate welfare. The cost of leasing the planes, which does not include a $4bn purchase option at the end of the six-year lease, is far higher than the cost of buying the planes outright, opponents complain.

“It’s a lousy deal for the Air Force and for the American taxpayer,” said Republican Sen. John McCain. Pentagon officials contend the lease deal, which still must be approved by Congress, allows the Air Force to begin replacing its aging the KC-135E tanker fleet three years earlier than planned and requires less upfront costs than a straight purchase.

With an average age of over 43 years, the current tanker fleet is the Air Force’s oldest combat weapons system. The new planes will carry 20 percent more jet fuel than the current fleet and can be refuelled in flight themselves, Air Force officials say.

“People don’t think of tankers as being that essential in our national security, but they should,” said Republican Sen. Pat Roberts. The contentious deal has been delayed repeatedly as McCain and other critics questioned the price. Each plane is expected to cost $138m, including $7m in leasing fees. That price is significantly lower than Boeing’s earlier estimates.

Congressional supporters of the leasing deal have maintained pressure on the Pentagon for more than a year. The lease plan allows the Air Force to get 67 new tankers in the next six years, as opposed to one in an earlier plan to buy the aircraft, said Edward “Pete” Aldridge, the Pentagon’s chief of weapons acquisition. Buying 100 tankers would have cost $8bn over the next six years, which would have had to have been taken from other military programs, Aldridge said.

The first leased tanker is scheduled for delivery in 2006, with up to 20 planes a year to be delivered after that, Aldridge said.While the deal was important to the Air Force, it was crucial to Boeing because it preserves thousands of jobs.

Comment: This announcement reinforces the Boeing-led FSTA team bidding for the UK £20bn PFI requirement. Now the US, Italy and Japan have chosen the 767 option. Not only will this deal relive the need to store the aircraft in the desert, continuing refurbishment of the old Boeing civil fleet for military options will create an outlet for airlines wishing to upgrade their fleets to new Boeing aircraft.

Primary Sidebar

Advertisers

  • qioptiq.com
  • Exensor
  • TCI
  • Visit the Oxley website
  • Visit the Viasat website
  • Blighter
  • SPECTRA
  • Britbots logo
  • Faun Trackway
  • Systematic
  • CISION logo
  • ProTEK logo
  • businesswire logo
  • ProTEK logo
  • ssafa logo
  • AtkinsRealis logo
  • IEE
  • EXFOR logo
  • sibylline logo
  • Team Thunder logo
  • Commando Spirit - Blended Scoth Whisy
  • Comtech logo
  • GoExporting logo
  • ECHODYNE logo
  • Supercat logo
  • Galvion logo
  • Leonardo DRS logo
  • MTC logo
  • IDC logo
  • IDC logo
  • DVD2024 logo
Hilux Military Raceday Novemeber 2023 Chepstow

Contact Us

BATTLESPACE Publications
Old Charlock
Abthorpe Road
Silverstone
Towcester NN12 8TW

+44 (0)77689 54766

BATTLESPACE Technologies

An international defence electronics news service providing our readers with up to date developments in the defence electronics industry.

Recent News

  • Congress Avoids Government Shutdown

    October 1, 2023
    Read more
  • UK Forces Deployed to Kosovo

    October 1, 2023
    Read more
  • RAF Fighter Jets Deploy To Poland

    October 1, 2023
    Read more

Copyright BATTLESPACE Publications © 2002–2023.

This website uses cookies to improve your experience. If you continue to use the website, we'll assume you're ok with this.   Read More  Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT