Tanker pt2

Pentagon Tanker Study
Supports Both Boeing, Airbus
By ANDY PASZTOR
Staff Reporter of THE WALL STREET JOURNAL
January 26, 2006 11:14 p.m.
LOS ANGELES -- The Pentagon's long-awaited analysis of options for new
aerial-refueling tankers calls for the Air Force to acquire*and convert
"medium to large" commercial jetliners,*potentially larger than Boeing
Co.'s 767, and perhaps also buy planes from European rival Airbus,
according to a senior Democratic Congressman.
Rep. Norm Dicks of Washington,*after being briefed on the report earlier
today, put out a release indicating that a number of Boeing and Airbus
aircraft*probably "would meet the requirement,"*including the Boeing
747, 777, 787 models, as well as Airbus A330 and A340 models.
Rep. Dicks, a senior member of the House Armed Services Committee and a
staunch Boeing supporter*whose district includes many Boeing employees,
added that the study stopped short of "definitive conclusions about the
timing" of replacing the current aging tanker fleet. Prompted by*years
of scandal, protracted controversy and a spate of Congressional and
Pentagon investigations involving earlier Air Force tanker decisions,
the latest document is expected to open the door for Airbus to compete
for any order. It's also likely to provide ammunition for Pentagon brass
inclined to pick aircraft larger than Boeing's twin-engine 767 model,
though in his statement the Congressman said he believes the 767 likely
also would meet Air Force requirements.
Arguments over how many new aerial-refueling tankers the Air Force
needs, and how quickly they need to be put into service, embroiled
Chicago-based Boeing in a long-running dispute with members of the
Senate Armed Services Committee and particularly Republican Sen. John
McCain of Arizona. Sen. McCain led the charge against the Air Force for
skirting acquisition procedures years ago in trying to rush through
a*$20-billion plus*deal to lease or*buy some 100 Boeing 767 aircraft*for
use as*tankers.*
The latest study,*which*is based partly on analytical work*by Rand Corp,
a Santa Monica, Ca. think tank, concludes that "factors other than
economic concerns should drive the acquisition schedule for tanker
recapitalization," according to Rep. Dicks. The Congressman said he
expects the Pentagon later this year to seek expressions of interest
from Boeing and Airbus for the initial phase of a proposed tanker
replacement program. But*it could take a long time, perhaps even
years,*until the Air Force puts out formal bids. And*current Pentagon
budget pressures*are likely to make any large-scale acquisition
program*difficult to fund. Rep. Dicks said the Air Force has $100
million in*seed money previously appropriated by Congress to launch any
program.
Write to Andy Pasztor at