The KC-767 would be a better choice for the USAF rather than the KC-330.

Outside of the "Buy American" first sentiment, it simply comes down to aircraft size. The -330 is quite a bit larger than the -767...and this would be a disadvantage when factored with existing USAF base, ramp and hanger space.

Maybe some of the tanker folks here on this forum could give us their personal opinion on whether that makes sense or not?

In the meantime, here is an article worth reading...

Competition To Modernize USAF Tankers Could Take Years

quote:

---

A competition to upgrade or replace the U.S. Air Force's aging KC-135 tankers could take as little as six months or as long as several years, depending on the option chosen, a service official said Nov. 23.

Holding a competition to replace the engines on the KC-135Es, the oldest aircraft in the KC-135 fleet, would take roughly six months, while soliciting and evaluating proposals for a new commercial derivative aircraft, such as a Boeing 767 or Airbus A330, would probably take at least 18 months, said Air Force acquisition chief Marvin Sambur.

Picking a contractor to develop a new aircraft for Air Force refueling needs could take several years, Sambur said.

---

Boeing adds legal muscle to polish image

By Susan Chandler
Tribune staff reporter
Published February 4, 2005


Boeing Co. has hired two high-powered outside attorneys to help it move beyond ethical lapses that have damaged its relationship with the Pentagon and cost it billions of dollars in business.

The Chicago-based aerospace manufacturer confirmed Thursday that it has engaged Richard Cullen, a former Virginia attorney general, and Jamie Gorelick, a former high-ranking Justice Department official and member of the 9/11 Commission.

The additions are intended to "help us work through the complexities of the legal matters we are dealing with right now," said Boeing spokesman Dan Beck.

Eighteen months ago, Boeing was suspended from military rocket launches because the company had thousands of proprietary documents from rival Lockheed Martin Corp. in its possession when bidding on launch contracts.

Initially, the suspension was expected to last a few months, but when Boeing ran into ethical problems on a controversial $23 billion Air Force contract for refueling tankers, it dragged on.

The tanker contract was scrapped last fall after Darleen Druyun, the former Air Force official who negotiated it, admitted she had increased the price as a "parting gift" to Boeing. She also said she had favored Boeing in other contracts because her daughter and son-in-law worked there, and she hoped to work there someday.

The Pentagon's inspector general has been investigating Druyun's conduct at the Air Force and is expected to issue his report soon.

Druyun and Michael Sears, Boeing's former chief financial officer, were fired by the company in late 2003 for negotiating a post-Air Force retirement job for Druyun while she was handling the Boeing contracts.

Druyun began serving a nine-month prison sentence in January for violating federal contracting laws. Sears, who has pleaded guilty to a misdemeanor, is to be sentenced Feb. 18.

Boeing Chief Executive Harry Stonecipher said this week that he doesn't expect Boeing's suspension to be lifted before then.

"Nobody has the courage to do anything until after that," he told Wall Street analysts in an earnings conference call Wednesday.

An Air Force spokeswoman said she didn't know of any settlement talks with Boeing.

She added, "We're looking forward to Boeing coming off suspension, but we have to go through a process to ensure that they've done the right things to satisfy the Air Force."

EADS Touts Tanker Factory to 35 States

(Source: EADS North America; issued Feb. 16, 2005)

The search for a KC-330 advanced tanker assembly site in the U.S. gained momentum today as representatives from a majority of states were briefed on the process to select an industrial center that eventually could employ as many as 1,100 skilled aerospace workers.

Approximately 135 representatives from 35 states attended the Site Selection Information Day meeting in Washington, D.C., which marked the second major step in a process to identify the location for KC-330 assembly, outfitting and delivery if the Air Force selects the tanker for its mission requirements.

Participating in the meeting were business and economic development personnel from Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia and Wyoming.

The selected site's initial activity will be as a new Airbus Aircraft Engineering Center in the U.S., which will begin operation in early 2006. This facility will employ approximately 150 engineers, and is to support continuing engineering work on commercial Airbus models and military derivative aircraft - including the A330, A340 and A350 commercial jetliners, as well as the KC-330 tanker.

An Air Force selection of the KC-330 for its tanker requirements would lead to the establishment of a Military Modification Assembly Line (MMAL) at the site, where A330 aircraft will be brought for modification and the outfitting of mission equipment. Employment could grow by an estimated 500 workers, including a mix of structures and systems assemblers, engineers, technicians, quality personnel and managerial staff.

Depending upon the size of the Air Force acquisition, the site could be further expanded to include a Final Assembly Facility (FAL), where KC-330 build-up would be performed. This additional activity could bring the industrial center's total investment to more than $600 million, raising employment to as many as 1,100 workers.

The site selection process is being carried out by EADS North America, which is offering the KC-330 for the modernization of the U.S. Air Force's aerial refueling fleet.

EADS North America chose The Staubach Company - a Dallas, Texas-based international real estate firm - to manage the site selection process. The schedule calls for interested states and localities to respond to a Request for Information (RFI) by March 30. Locations that are deemed to meet the industrial center's requirements will then be asked to answer a Request for Proposal (RFP), with a final selection of the site to be made before year-end.

Watchdogs on Sears, Boeing ethics probe outcome...


TCS Statement on Mike Sears's Sentencing

(Source: Taxpayers for Common Sense; issued Feb. 18, 2005)

WASHINGTON, D.C. --- The following is a prepared statement by Keith Ashdown, Vice-President of Policy at Taxpayers for Common Sense, a national budget watchdog organization:

Michael Sears, former chief financial officer of Boeing, was sentenced to four months in prison this morning as punishment for breaking federal procurement laws in negotiating a job at Boeing for Darleen Druyun while she was a procurement officer with the Air Force and while she was in charge of a $20 billion air force tanker contract.

The sentencing of Michael Sears sends a clear message that fleecing the federal government doesn't pay. The four month jail sentence will act as a wake-up call and a strong deterrent for any contractor who thinks they can get away with ripping off taxpayers. They now know they run the risk of trading their corporate pin-stripes for jail stripes if they lie, cheat, and steal on a federal contract. Now that Michael Sears will be changing suits, other senior defense executives are sure to think about spending time in the slammer before they try to rip off taxpayers.

The violation of federal law by Druyun and Sears, and the quiet complicity of senior Boeing executives, has caused irreparable harm to the procurement process and the nation.

It may not seem like much, but the four-month sentence is a first step in repairing the tarnished reputation of the Air Force and lifting the cloud of controversy over the billions of dollars of contracts that have been tainted by the personal greed of two individuals.

Taxpayers for Common Sense (TCS) is a non-partisan budget watchdog. TCS is dedicated to cutting wasteful spending and subsidies in order to achieve a responsible and efficient government that lives within its means.

-----------------------------------

Ex Boeing Official Sentenced to Four Months in Prison; POGO Offers Home for Community Service

(Source: Project On Government Oversight; issued Feb. 18, 2005)

This morning Boeing’s former Chief Financial Officer Michael Sears was sentenced to four months in prison, a $250,000 fine and 200 hours of community service for his part in the illegal hiring of Air Force top acquisition official Darleen Druyun. As a nonprofit organization, the Project On Government Oversight (POGO) is formally inviting Mr. Sears and Ms. Druyun to complete his community service at our organization.

“Certainly, it’s difficult to watch anyone go through this personal downfall,” said POGO Senior Defense Investigator Eric Miller. “However, this sends a message to the military industrial complex that the public is outraged by this type of ‘business as usual’ corruption. Prison time for Sears and Druyun will make others hesitant to sell out the public for their own personal gain.”

The sentence follows Sears’ November 15, 2004 guilty plea to a single count of aiding and abetting illegal employment negotiations.

POGO investigates, exposes, and seeks to remedy systemic abuses of power, mismanagement, and subservience by the federal government to powerful special interests. Founded in 1981, POGO is a politically-independent, nonprofit watchdog that strives to promote a government that is accountable to the citizenry.

Boeing Statement Regarding U.S. Attorney Action in Sears Case

(Source: The Boeing Company; issued Feb. 18, 2005)

CHICAGO --- Boeing Senior Vice President and General Counsel Doug Bain issued the following statement today after former Boeing executive Mike Sears was sentenced in U.S. District Court in Alexandria, Va.:

"Today's action brings this matter one step closer to closure. The Boeing Company has provided information every step of the way to support the government's ongoing review of Darleen Druyun-related procurements and to achieve our mutual goal to finally resolve this matter.

"In addition to dismissing Sears and Druyun in November 2003, the company commissioned an independent external review of its hiring practices, which determined that Boeing had in place well established policies and procedures. Nevertheless, the Company has adopted recommendations from that review and strengthened its policies in this area, including establishing an Office of Internal Governance reporting directly to the CEO.

"Today, every employee of The Boeing Company -- at every level -- understands that integrity and ethics are the foundation of our business, and we have both the will and the process to ensure accountability for any violation."

US Attorney on Boeing’s Sears Sentencing

(Source: US Attorney for Virginia; issued Feb. 18, 2005)

ALEXANDRIA, VA. --- United States Attorney Paul J. McNulty announced that Michael M. Sears, age 57, the former Chief Financial Officer of the Boeing Company was sentenced today by the Honorable Gerald Bruce Lee, United States District Court Judge, to four months incarceration, a fine of $250,000 and 200 hours of community service.

Sears was a senior executive of the Boeing Company, one of this nation’s largest defense contractors. He served as the Chief Financial Officer of Boeing, and as a member of the Office of the Chairman, which consisted of the four senior executives of the Boeing Corporation. Sears pled guilty on November 15, 2004 to aiding and abetting acts affecting a personal financial interest. From September 23, 2002, through November 5, 2002, Sears aided and abetted Darleen Druyun, then the Principal Deputy Assistant Secretary of the Air Force for Acquisition and Management, in negotiating employment with Boeing while she was participating personally and substantially as an Air Force official overseeing the negotiation of a $20 billion lease of 100 Boeing KC 767A tanker aircraft.

Mr. McNulty said, “Mr. Sears had a clear choice. Instead of respecting the integrity of the government’s procurement system, he chose the financial interests of his company over the best interest for America.”

Michael Sears was contacted in September 2002 by Darleen Druyun’s daughter, herself a Boeing employee. In a series of E-mails to Sears the daughter outlined her mother’s intention to retire from the Air Force and the type of position her mother would accept after retirement. Druyun discussed these E-mails with the daughter, who relayed Druyun’s interest in Boeing employment in a meeting with Sears.

As a result Michael Sears and Darleen Druyun met in a private conference room at the General Aviation Terminal of Orlando Airport on October 17, 2002. Druyun advised Sears at that meeting that she had not disqualified herself from matters involving Boeing and therefore they should not be discussing her possible employment by the Boeing Company. Michael Sears intentionally elected to continue with the employment negotiations knowing that their actions created a conflict of interest. At the conclusion of the employment negotiation, Sears and Druyun discussed issues concerning a major Air Force procurement which Boeing participated in as a subcontractor. Sears was terminated by Boeing on November 24, 2003.

This investigation is being conducted by the Defense Criminal Investigative Service of the Office of Inspector General, Department of Defense, the Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Prosecuting the case for the United States is Assistant United States Attorney Robert W. Wiechering.

Procurement Fraud Working Group announced

Mr. McNulty also announced he is spearheading a procurement fraud initiative to promote the early detection and prevention of procurement fraud associated with the increase in contracting activity for national security and other government programs.

The “Procurement Fraud Working Group” will consist of representatives from several federal agencies including the FBI, DoD, NRO, DHS, DOS and DOT. The Working Group will facilitate the exchange of information among participant agencies and assist them in developing new strategies to prevent and promote early detection of procurement fraud. The initiative is described in a separate paper entitled: “Combating Procurement Fraud: An Initiative to Increase Prevention and Prosecution of Fraud in the Federal Procurement System.”

Click here for the Government's Position with Respect to the Sentencing Factors, on the USDA Eastern Virginia website (8 pages in PDF format)

Boeing Rolls Out First KC-767 Tanker for Italian Air Force

(Source: The Boeing Company; issued Feb. 24, 2005)

ST. LOUIS --- Boeing officials and their Italian Air Force customers revealed the first KC-767A advanced aerial refueling tanker during ceremonies today at the Boeing site in Wichita, Kan.

The rollout event marks completion of essential structural modification to the world's most advanced aerial refueling aircraft.

"The KC-767A program represents the fulfilment of one of the most important goals in the Italian Air Force transport and support fleet modernization process," said General Giovanni Sciandra, the three-star general commanding the Italian Air Force Logistics Command. "As a transportation platform, the KC-767A will increase the expeditionary capability of the Italian Air Force." General Sciandra represented the Italian Air Force Chief of Staff at the ceremony.

The aircraft unveiled at the ceremony is the first of four tankers being built for the Italian Air Force, and is scheduled for delivery in April 2006 after completion of flight testing and certification.

"Boeing is proud to produce this completely new aerial refueling aircraft," said Jim Albaugh, Boeing Integrated Defense Systems president and CEO. "Due to the vision and commitment of our Italian customer, we have been able to design new capabilities into this aircraft that are uniquely suited for the security needs of today and tomorrow.

Hey Schlappy,

Had a chance to look into the issue with the KC-767 and Euro equivalent. If I had to pick, I'd pick the Boeing. Regardless of how you feel about "Buy American", that is what I'd do here, if only to ensure we can still build planes in 20 years (rather than any type of nationalist crap. I got a Ford F-150, but I also own a Nissan sentra).

What the Air Force needs is a tactical refueling capability for the tactical arena, and a strategic refueling capability for the strategic arena. I guess a KC-135 is tactical, but speaking from experience, sitting #3 (or further) in line does not seem very damn tactical. I’m sure the fighter jocks could comment on getting to the gas station and waiting in line. We’re still basing Tanker's on cold war ideas, Vietnam's issues, and Gulf War I and II's results, and it will lead to problems in new conflicts.

The Air Force needs more Tactical Air Lift, Stratigic Air Lift, and Tactical Air Refueling. Way more than it has ever has in the past. Is a KC-767 (or whatever similar aircraft) really tactical? Or is it just the best we can do with the money currently available?

If pushed, I’d support the KC-767, only because the political will to pass funding for a dedicated design (like the dedicated military airlift design of the C-17) is not there. The politicians love the hybrids & convee’s. I think the KC-97’s, -135’s, and –10’s are great planes. I believe they represent an old idea. I’d half the KC-767 plan, and spend the other half on research into unmanned tactical tankers.

I say screw it…we gotta pump when we go to the station, so make the pilots do it as well. Put a drone up there with no crew and as much damn fuel as you can pack into a flying wing design (or other unconventional stealth shape). Make it dirt simple (without the credit card slots…of course). Then we can fill up a few 767’s (as a Joint Stars replacement) with all the joystick operators for the new tactical refueling stations.

FAT CHANCE, EH!

I totally agree.

Unfortunately, the following article indicates the future of the KC-767 is tenuous at best...



BOEING: Interim chief expects to halt production line for 767 model

Bloomberg News
Published March 10, 2005


NEW YORK -- Boeing Co. said Wednesday that it probably will halt production of its 767 model while the U.S. Air Force decides whether to use the plane as a refueling tanker.

"I'm not overly hopeful on that, even if we had a tanker program today," interim Chief Executive James Bell told analysts. "We'd probably have to have a break in the line because of when that delivery schedule will be."

In October, Congress scrapped an agreement to lease and buy 100 tankers based on Boeing's 767 because the illegal hiring of a former Air Force procurement official by the Chicago-based company may have influenced the awarding of contracts. The Pentagon and Air Force are revising the acquisition process after the $23 billion agreement collapsed.

"If we're looking at a 2008 tanker start, the 767 could be gone," said Richard Aboulafia, an aerospace consultant at the Teal Group in Fairfax, Va. "This could mean a huge breakthrough for [rival] Airbus."

I'd bet a plug nickle that the Airbus won't be getting this contract.

You should know that I have lost a lot of plug nickels in my day (none of which I produced, mind you). I'm to poor to play with real money.

I'll keep my ear to the ground and see what runs over me. In the meantime, thanks again for keepin all of us informed.

USAF is poised to scrap KC-767 plan

Flight International
18 May 2004

Fresh proposal to replace Stratotankers now likely

The groundwork has been laid for the US Air Force to scrap its troubled plan to lease and buy 100 Boeing KC-767 tankers and start on a fresh proposal for replacing its oldest Boeing KC-135E Stratotankers. Two events last week further signalled the demise of the air force's suspended lease/buy arrangement.

First, lawmakers were briefed on the results of a new Department of Defense study that calls the KC-135E corrosion problem "manageable", refuting a key justification for pursuing the air force's hasty and more expensive lease option.

In addition, the House Armed Services Committee (HASC) said that it favours introducing legislation that would allow the air force to enter a multi-year procurement deal for a replacement tanker fleet, essentially killing the existing lease/buy deal.

But the key tipping point in the 30-month-old debate may be the results of the Pentagon study, which was conducted by the Defense Science Board (DSB). As US Secretary of Defense Donald Rumsfeld had said he would not do anything until he read the DSB report, "that puts a lot of weight behind the report", says Congressional Research Service defence analyst Christopher Bolkcom.

The air force had claimed the higher costs and safety risks of operating ageing KC-135s damaged by advanced metal corrosion compels the service to adopt the leasing strategy. But congressional sources say the DSB report concludes that no imminent corrosion crisis exists, and can at least be managed for several years before a replacement is required. The report also urges the air force to consider several interim replacement options in addition to buying KC-767s, such as re-engining the KC-135E fleet or modifying retired commercial McDonnell Douglas DC-10s. The service now operates 59 KC-10A tanker-transports.

The DSB members found no reason to recapitalise the KC-135 fleet before the air force can complete an analysis-of-alternatives study, which was launched by Rumsfeld's office four months ago and is expected to be complete in 2005.

The DSB study comes one month after the Pentagon's inspector general published a critical review of the KC-767 lease terms. In response, HASC members say the air force should begin negotiating a straight procurement after 1 June. The HASC proposal does not identify a preferred platform, but makes no call for a competitive phase preceding the contract negotiations.

quote:

EADS Touts Tanker Factory to 35 States

(Source: EADS North America; issued Feb. 16, 2005)

The search for a KC-330 advanced tanker assembly site in the U.S. gained momentum today as representatives from a majority of states were briefed on the process to select an industrial center that eventually could employ as many as 1,100 skilled aerospace workers.

...[update]...


32 States Vie for EADS Tanker Plant

(Source EADS North America; issued April 11, 2005)

The competition to select a U.S. assembly site for the KC-330 advanced tanker has attracted a full lineup of candidates – with 32 states submitting approximately 70 locations for consideration by EADS North America.

Responding to a March 30 deadline for the submittal of information, the states provided initial details on a full of range of site options from coast-to-coast in the continental U.S. This information is now being evaluated in a process that will lead to a short list of locations for the competition’s final phase.

“We are extremely pleased by the number of states that responded, and the diversity of locations proposed for the KC-330’s industrial facility,” said EADS North America Chairman Ralph J. Crosby. “We remain on track for a selection of the location before the end of 2005.”

EADS North America is offering the KC-330 tanker for the recapitalization of the U.S. Air Force’s aging aerial refueling fleet. The KC-330 is the world’s most modern and capable in-flight refueling system, and it is being offered to the Air Force as an American solution, developed with a highly capable U.S. industrial team.

Once selected, the winning site’s initial activity will be as a new Airbus Aircraft Engineering Center in the U.S., which will begin operation in early 2006. This facility will employ approximately 150 engineers, and is to support continuing engineering work on commercial Airbus models and military derivative aircraft - including the A330, A340 and A350 commercial jetliners, as well as the KC-330 tanker.

An Air Force selection of the KC-330 for its tanker requirements would lead to the establishment of a Military Modification Assembly Line (MMAL) at the site, where A330 aircraft will be brought for modification and the outfitting of mission equipment. Employment could grow by an estimated 500 workers, which would include structures and systems assemblers, engineers, technicians, quality personnel and managerial staff.

Depending upon the size of the Air Force acquisition, the site could be further expanded to include a Final Assembly Facility (FAL), where KC-330 build-up would be performed. This additional activity could bring the industrial center's total investment to more than $600 million, raising employment to as many as 1,100 workers.

The KC-330 industrial facility site selection process is being managed by The Staubach Company – a Dallas, Texas-based firm with significant experience in facilities selection, real estate, and project management.

FREAK EADS...FREAK THE FRENCH!!!!

--------------------------------------

Rival aims to lower the boom on Boeing
EADS trying to end a market monopoly on Air Force tankers

By Susan Chandler
Tribune staff reporter
Published May 1, 2005
subscriber link


MADRID -- Not too long ago, Boeing Co. was the only game in town when it came to the U.S. Air Force's tanker fleet.

Boeing has built every one of the country's more than 500 KC-135 tankers. It works side by side with Air Force mechanics to maintain the fleet.

And, most important, it has a monopoly on a critical piece of equipment--an extendable boom--used by the Air Force to transfer fuel from tankers to fighter jets and cargo planes.

Not for much longer.

European Aeronautic Defense and Space Co., the parent of Airbus SAS, is developing its own refueling boom at a cost of about $45 million to date, half of the $90 million it has committed to the project.

A prototype was unveiled last week outside Madrid to the strains of Wagner's "Ride of the Valkyries," the music best known these days for the helicopter scene in the movie "Apocalypse Now." The event was witnessed by more than 50 journalists who flew in from the U.S., Europe and Australia for an update on EADS' progress.

"The concepts of our engineers ... are becoming a reality," Francisco Carrasco, head of EADS' boom development program, told reporters April 22. "There is a huge market available to us."

It's a market that Chicago-based Boeing has had a lock on.

Back in 2002, no one was very surprised when Boeing landed a $23.5 billion multiyear contract from the Air Force to supply 100 new tankers.

Boeing was the only bidder because the Air Force determined that EADS and Airbus couldn't meet all the bid specifications, especially the one requiring boom refueling.

What was surprising was the structure of the deal: a lease rather than an outright purchase.

The lease would have allowed the Air Force to have new tankers without paying much upfront. But the Rent-A-Center approach to military procurement ran into heavy turbulence from Sen. John McCain (R-Ariz.) and the Congressional Budget Office because it would cost billions of dollars more than an outright purchase.

The deal also irked McCain, a noted Senate watchdog, for another reason: Darleen Druyun, the high-ranking Air Force acquisitions officer who negotiated the lease deal, went to work for Boeing shortly after she retired from the Pentagon in November 2002.

But the tanker debate devolved into outright scandal in late 2003 when Boeing fired Druyun and Michael Sears, its chief financial officer, for negotiating a $250,000 Boeing job for Druyun while she was still working on the tanker deal, a violation of federal contracting laws.

After pleading guilty and admitting that she raised the price on the tanker deal as a "parting gift to Boeing," Druyun is now serving a nine-month prison sentence. Sears also pleaded guilty and has begun serving a four-month sentence at a minimum-security prison camp in Oxford, Wis.

Some have called it the biggest contracting scandal in 20 years. It was more than enough to drive the final nail into the coffin of Boeing's tanker contract, which Congress threw out last fall. The Air Force has said it will rebid the contract, and EADS--a consortium of German, French and Spanish defense contractors--is welcome to participate.

The long, slow death of the Air Force tanker contract has given EADS critical breathing space to develop its own boom and become a viable competitor.

At this point, EADS' experimental boom is mounted on a five-story tower with a control room. A boom operator sits in the control room, maneuvering the boom's extending arm toward a piece of metal that represents the spine of an aircraft. The metal slab is bobbing around on a flight simulator, mimicking the bumpiness of air currents.

When the boom successfully locks onto its target, a fuel substitute is pumped into the metal section, simulating the refueling action that takes place in flight when tankers hook up with Air Force aircraft.

At this point, the prototype boom is the only one that exists. EADS hopes to test its boom in flight early next year.

Keeping to a tight schedule is critical because EADS wants to be completely ready when the Air Force puts a new tanker contract out to bid, which could happen late this year or in early 2006.

A new ballgame

It's still an open question whether political realities in Washington will permit the Pentagon to award a major weapons-system contract to a foreign supplier, particularly one heavily associated with France, America's most unpopular ally at the moment.

But given the scrutiny that will accompany the new round of bidding, a dwindling number of prognosticators are willing to bet that Boeing has the field to itself this time around.

EADS is proceeding as if the playing field is level.

"We believe the U.S. will hold an open and fair competition," said Carlos Suarez, EADS vice president in charge of military derivatives based on Airbus platforms.

Because of the tanker scandal, it's possible the Air Force will decide to split a contract between Boeing and EADS, defense experts say, something that wouldn't have been politically feasible before.

When it comes to tankers, the U.S. is the Big Kahuna.

Only a handful of nations project their air power far enough from home to require aerial refueling. Those that do, such as Great Britain and Australia, need only a few tankers in their fleet.

Every other country's tanker requirements pale in comparison with the Air Force's need to replace hundreds of Eisenhower-era tankers within the next few decades.

EADS executives say they realistically expect to sell 150 tankers in the next decade.

To hear EADS executives talk, their A330 tanker is vastly superior to the one Boeing was proposing based on its 767 airframe, which is being phased out of commercial production.

The EADS tanker is bigger, so it can hold more fuel and carry more cargo. It also can fly farther and stay circling in the air longer.

Bigger isn't necessarily better, according to Boeing.

"We have the right size airplane," asserts Jim O'Neill, manager of Boeing's tanker program. "If you have all these big airplanes taking up all this space, you can't get as many aircraft in the theater. One big jumbo airplane doing the refueling isn't always the right answer."

On top of that, Boeing plans to pitch its 767 tanker as a more proven product. The first of four tankers for the Italian Air Force rolled off Boeing's production line in Wichita this year and is set for flight testing this summer.

In contrast, the EADS tanker won't be ready for flight testing until early 2006.

"We'll be a proven commodity and a significantly lower risk," O'Neill said.

Shopping for a partner

EADS may have a boom, but it still lacks a critical element for a successful bid--a U.S. partner such as Lockheed Martin Corp. or Northrop Grumman Corp. to play the role of prime contractor.

In this case, the term "prime contractor" is a little misleading because EADS will be doing most of the work, and the tanker will be based on an Airbus airframe.

That makes it less attractive for some U.S. defense contractors, but it's important to have an American company's name on the bid for political reasons, defense analysts agree.

A few months ago, Lockheed and Northrop said they weren't interested in the tanker market.

Lockheed says its position hasn't changed, but Northrop appears willing to at least consider a trans-Atlantic partnership.

"We are looking at our options carefully," Northrop Grumman spokesman Tom Henson said this week.

EADS hopes to announce a U.S. partner in the next two months, company officials said.

On the American plan

The Europeans are taking a page from American defense contractors. They are spreading their facilities around in the U.S., and they are hiring former high-ranking Pentagon officials to help them win military business.

In January, EADS North America appointed retired Air Force Maj. Gen. Silas Johnson Jr. as its director of marketing for advanced tanker programs. Johnson, who spent 34 years with the Air Force, has held various positions in the Pentagon and with the Joint Chiefs of Staff.

In early April, EADS appointed Les Brownlee, former acting secretary of the Army, to its North American board of directors.

During the mid-1980s, Brownlee served as the national security legislative assistant to Sen. John Warner (R-Va.), chairman of the Senate Armed Services Committee. It was Warner's change of heart in regard to the Boeing tanker lease that doomed the deal, watchdog groups say.

EADS has promised to do final assembly of its tankers in the U.S. if it wins a big enough order.

"We will team with a major American partner, expand our industrial footprint in the United States, employ American workers and pledge to offer the finest military capability for the U.S. Air Force at the best value to our taxpayers," Ralph Crosby, chief executive of EADS North America, said last year.

- - -

New battle for Boeing

Boeing used to have a virtual lock on the market for tankers, which are used to refuel aircraft in flight. But EADS, the parent of Airbus SAS, is developing its own tankers. EADS has won contracts to supply several countries with tankers and intends to bid for a large order from the U.S. Air Force, which plans to put a contract out in late 2005 or early 2006 for up to 100 tankers.

EXPECTED TANKER CONTRACTS COUNTRY

BOEING
Italian Air Force 4
Japanese Air Force 4

EADS (AIRBUS)
British Royal Air Force 15 to 20 Royal Australian Air Force 5
German Air Force 4
Canadian Air Force 2

Ummm, Airbus is more than just "France", it is several Euro countries.

But the design, final assembly, and flight test are all based out of France. And it was a French idea at the start.

The A-330 is a wonderful airplane, and it would make a fantastic replacement for the KC-10, if it were needed. However it is quite a bit larger than the 767-200, weighs quite a bit more too, so while it can fly further and carry more, it would still be restricted in terms of how many could be deployed to areas of need.

To be specific, airfields in the AOR, such as Manas, Tashkent, Kharshi-Khanabad (K2), and others, were originally Soviet fighter fields and don't have tons of ramp space. There isn't a whole lot of room, and the DoD would like to maximize the numbers of tankers it can park on a given ramp. Also an issue is weight - the footprint of the A-330 would be far greater, as it's a heavier airplane. It is possible that given its basic starting weight, it would not be possible to fuel the airplane to capacity, as it could exceed the capability of those fields to support it.

KC-10s typically deploy to large locations, such as Diego Garcia or Al Udeid. But KC-135s, with their far greater numbers, are scattered to many more locations. It's like the difference between the C-17 and the C-130, although not quite as dramatic a difference.

quote:

Originally posted by erikd65:
Ummm, Airbus is more than just "France", it is several Euro countries.

Is that supposed to be a good thing?

Look, its not just France, both Germany and Spain have followed them into our dog house. Europe in general is quickly becoming an adversary, and outside of the UK, I don't trust any of them. Especially if they decide to start selling military weapons/technology to the Chicoms!

The French are Enemy #1...and the Germans and Spanish are close behind...thus the majority of EADS can go to hell!

This message has been edited. Last edited by: Sgt_Schlappy,

The Air Force buys Airbus and the next time we make the hard decision to take the battle to an enemy that France loves and all of a sudden we have no spare parts for our tankers.

No thanks, I don't want our supply line at the mercy of those who don't like us for anything but our money.

Aviation Week and Space Technology reported a rumor this week that Boeing is considering producing a tanker variant of its 787/7E7 aircraft.

I would support this a whole lot more than the gov't having to subsidize Boeing's keeping the 767 line open, so they can possibly net some more overseas sales off 767 tankers, as well as ours possibly as well. Japan is likely the next buyer, if they haven't already done so.

Another thing to consider is that the military would buying an outdated design...the scarcity of parts and age of the aircraft are black marks used against the KC/RC/EC-135 fleet, as well as the 707 variants (E-3, E-8, E-6), as well as excuses used to buy 767s now instead. So buying an airframe that's about to go out of production again is a good idea? Same thing they did with the E-6...

The 767 has clearly lost out to the A330 in terms of efficiency and practicality. It's outdated, old, and past it's prime. Time to clear it out, out with the old, in with the new.

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Aviation Week and Space Technology reported a rumor this week that Boeing is considering producing a tanker variant of its 787/7E7 aircraft.

I don't think that's such a good idea...the Dreamliner isn't designed with military "cargo/tanker" variants in mind...it is purely a "passenger" aircraft designed for maximum efficiency in the commercial sector.

I just feel the 767 is the appropriate aircraft for the job...hands down.

There is a rumor that Shanghai Airlines is contemplating the purchase of new 767s. This would keep the 767 line open another 12-18 months (on top of the current 18 month backlog) so that it will remain open thru the "new" tanker competition slated to be announced late this year or early next.

quote:

I don't think that's such a good idea...the Dreamliner isn't designed with military "cargo/tanker" variants in mind...it is purely a "passenger" aircraft designed for maximum efficiency in the commercial sector.

I wouldn't dismiss the 787 so quickly. All new platforms are designed to be versatile and although civil transport is the primary use, I suspect there are engineers already working on cargo, long range, special performance, stretch and military derivatives.

The airplane market is far too fickle to spend billions on a new design and then expect to market only one version.