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#61
May 11th 04, 01:13 PM
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Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 ================================================= =============== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 =========================================== ===================== On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ========================================== ====================== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ===================================== =========================== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ================================== ============================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ================================= =============================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ================================ ================================ U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 =============================== ================================= On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ============================== ================================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ============================= =================================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ========================== ====================================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ======================= ========================================= Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ==================== ============================================ A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 =================== ============================================= The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 =================== ============================================= The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ================== ============================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ================ ================================================ On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversia l lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ============== ================================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ============= ================================================== = The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congression al and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ============= ================================================== = On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ============ ================================================== == On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon' s acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposin g a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoma n Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflatio n. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposa l to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Service s Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuter s 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ========= ================================================== ===== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republic an Sen. Ted Stevens underscored what he called the urgenc y of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said document s provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extreme ly aggressive sales pitch" for the deal. (Reute rs 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darlee n Druyun, a former Air Force official, offered as early as Octobe r 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorand um shows. The Pentagon's Inspector General on Wednesday launch ed a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense official s said was focused on Druyun, who joined Boeing in Januar y 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiat ions, and Druyun had declined interview requests. The compan y insists Druyun has not been involved in the lease negotiat ions since joining the company, adhering firmly to federa l rules for former defense officials. Pentagon investig ators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiat ions with Boeing. (Reute rs 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue, " the Virginia Republican said at the opening of a hearin g into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimon y from witnesses before he would schedule a vote. (Reute rs 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretar y Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tanker s, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the official s said. (Reute rs 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozen s of email exchanges among BOEING CO., the Air Force and the Pentago n released on Saturday raised fresh questions about a controv ersial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairma n, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraf t sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuter s 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Criti cs of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senat e Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on avera ge 43 years old, will ultimately win the votes needed for approva l. Arizona Republican Sen. John McCain, chairman of the Commerc e Committee, blasts the deal as a government bailout of BOEIN G CO., whose commercial aircraft sales slumped after the Septemb er 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog group s are also skeptical of the deal, which has already won neede d approval from three of four congressional committees. (Reuter s 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ======= ================================================== ======= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEI NG CO. rejected published reports that it might have obtained riva l bidder Airbus SAS's proprietary information while negoti ating a proposed $22.5 billion refueling tanker leas e-purchase agreement with the U.S. Air Force. "Boeing believ es we did not receive any proprietary information from any official on any subject throughout the entire tanker leas e-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it call ed new allegations that a senior Air Force official had "provi ded Boeing with proprietary information" about Airbus's offe r to supply its own aircraft and modify them for the refuel ing mission. The French-German aerospace firm that contro ls Airbus said its response to the U.S. Air Force's origin al request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reute rs 01:31 PM ET 08/29/2003) More : http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ====== ================================================== ======== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrot e in Message-Id: : ------------------------------------------------------------------- AVfla sh Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEIN G TO FACE SENATE HEARING ON TANKER LEASE Boein g is under scrutiny, and the heat is about to intensify on Wedne sday, when a hearing will be held by the Senate Commerce Commi ttee about the planemaker's $21-billion leasing deal with the U.S . Air Force for 100 B767 aerial refueling tankers. A report issued las t week by the Congressional Budget Office concluded that "the propo sed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred und er the normal appropriation and procurement process." The Seattle Pos t-Intelligencer reported Friday that Boeing may have had improper acces s to information about Airbus's competing proposal for the tanker dea l. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longt ime vocal critic of the lease -- which he has termed "corporate welfa re" for Boeing -- will preside over the hearing. Boeing has alrea dy been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wro te in Message-Id: : Th e U.S. Congressional Budget Office said the U.S. Air Force's pl an to lease 100 BOEING CO. 767s as refueling tankers will co st $1.3 billion to $2 billion more than an outright purchase. Th e congressional agency said the proposed lease also failed to me et four out of six conditions set for government leases by th e White House Office of Management and Budget. In a report publ ished on its web site, CBO said on average, the Air Force woul d spent $161 million for each new refueling tanker in 2002 doll ars, compared to a cost of $131 million for an outright purc hase. Two Senate committee plan hearings on the deal next week . The Air Force has said the deal would be about $150 mill ion more costly than a purchase, but say leasing is pref erable since it would allow the military to begin replacing it s aging fleet of KC-135 refueling tanker far sooner. (Reu ters 04:27 PM ET 08/26/2003) More : http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrot e in Message-Id: : A key panel in the U.S. House of Representatives on Friday app roved Air Force plans to lease 100 BOEING CO. 767 refueling tan kers, saying the lease would tie up less money in coming yea rs than a purchase. "(The tanker leasing proposal) allows us t o replace the aging fleet more quickly, while retaining an ess ential combat capability over the next several decades," Rep . Duncan Hunter, chair of the House Armed Services Com mittee, said in a statement late on Friday. "For this rea son, I am endorsing the proposal by the Secretary of Defense t o lease 100 KC-767 aerial refueling tankers from the Boeing Cor poration. The required notification will be sent this eve ning." (Re uters 01:58 AM ET 07/26/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 === ================================================== =========== O n Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wro te in Message-Id: : Th e General Accounting Office raised questions about U.S. Air Fo rce plans to lease 100 BOEING CO. 767 refueling tankers, sa ying the purchase cost of the planes after the 6-year lease wa s higher than that reported by the military. GAO's $173.5 mi llion per plane price is substantially higher than the $138.4 mi llion -- $131 million plus $7.4 million for financing costs -- ci ted by the Air Force, said Neal Curtin, director of defense ca pabilities for the congressional investigative agency. Curtin to ld the House Armed Services Committee he also had concerns ab out the "special purpose entity" created to own the aircraft an d lease them to the Air Force. The Air Force has already won th e approval of the House and Senate Appropriations committees, an d says it hopes to move forward on the deal by September. (R euters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wr ote in Message-Id: : B OEING CO. said a controversial plan to lease 100 tanker aircraft t o the U.S. Air Force would offer good value and speed badly n eeded planes into service. An Air Force analysis delivered to C ongress last Friday showed leasing could cost as much as $1.9 b illion more than a straight purchase, more than 10% of the p roposed $17.2 billion deal, which would include an option to b uy for another $4 billion. Critics including Republican Sen. J ohn McCain of Arizona have blasted the deal as a t axpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2 001 hijack attacks. But Air Force and Boeing officials argue t hat the tanker fleet, with an average age of 43 years, u rgently needs an upgrade, saying the maintenance savings from t he 100 proposed new aircraft would be worth $5 billion. ( Reuters 03:24 PM ET 07/14/2003) M o http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 = ================================================== ============= O n Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera w rote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ========================================== ====================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ========================================= ======================= On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ======================================== ======================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24eq4@ne ws-server.san.rr.com: BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8uqi@n ews-server.socal.rr.com: Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4g9iv@ news-server.socal.rr.com: The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3s411s @news-server.san.rr.com: BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ================================== ============================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lji0gdo : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtrsk3m6 : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8ehs5f : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =============================== ================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8s0q1 : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@news3. news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? 
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The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 =============================================== ================= On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ========================================= ======================= On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ======================================== ======================== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 =================================== ============================= On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ================================ ================================ On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 =============================== ================================= On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================== ================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ============================= =================================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ============================ ==================================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 =========================== ===================================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ======================== ======================================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ===================== =========================================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================== ============================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ================= =============================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ================= =============================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ================ ================================================ On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibilit y. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============== ================================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate profession al staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversia l lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ============ ================================================== == On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departmen t proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 =========== ================================================== === The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congression al and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 =========== ================================================== === On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesda y. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republic an who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayer s have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon 's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Presiden t George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan , the panel's top Democrat, have asked Defense Secretar y Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible referenc e to the up to 25 aircraft that Warner and Levin have suggeste d. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ========== ================================================== ==== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz , the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposa l from both Air Force Secretary James Roche and the Pentagon' s acting chief weapons buyer, Michael Wynne. (Reuter s 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposin g a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswo man Gloria Cales. "We should have our response pulled togeth er later this week or early next week." Cales gave no detail s, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflatio n. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reute rs 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposa l to lease BOEING CO. 767s as refueling tankers, said on Frida y he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'l l be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Service s Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuter s 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ======= ================================================== ======= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEI NG CO., raising new questions about a $22.4 billion Air Forc e deal to lease, then buy 100 767 tankers. Sen. John McCain cite d the investigation and once again blasted the proposed leas e deal at a Senate Commerce Committee hearing, while Alaska Republ ican Sen. Ted Stevens underscored what he called the urgenc y of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said docume nts provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extre mely aggressive sales pitch" for the deal. (Reute rs 04:11 PM ET 09/03/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darlee n Druyun, a former Air Force official, offered as early as Octobe r 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memora ndum shows. The Pentagon's Inspector General on Wednesday launch ed a formal investigation into whether the Air Force shar ed proprietary data with Boeing, an inquiry defense offici als said was focused on Druyun, who joined Boeing in Januar y 2003 after retiring from the Air Force in November 2002 . Boeing denies it received any proprietary data during the negoti ations, and Druyun had declined interview requests. The compan y insists Druyun has not been involved in the lease negoti ations since joining the company, adhering firmly to federa l rules for former defense officials. Pentagon invest igators will try to determine if Druyun overstepped her boun ds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boei ng that she played a key role early in the Air Force's negoti ations with Boeing. (Reute rs 08:12 PM ET 09/03/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Sena te Armed Services Committee Chairman John Warner said his pane l would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue, " the Virginia Republican said at the opening of a hearin g into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel woul d hold discussions in a closed hearing after taking testim ony from witnesses before he would schedule a vote. (Reute rs 10:26 AM ET 09/04/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secret ary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tanker s, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the offici als said. (Reute rs 05:05 PM ET 09/04/2003) More : http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrot e in Message-Id: : Dozen s of email exchanges among BOEING CO., the Air Force and the Penta gon released on Saturday raised fresh questions about a contr oversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chair man, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircr aft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say , but they show a close relationship between Boeing and Air For ce officials, including Air Force Secretary James Roche, as wel l as details of a rival bid by Airbus SA. (Reut ers 05:11 PM ET 08/30/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Criti cs of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cos t concerns at a Senate hearing on Wednesday in a final bid to blo ck the deal. Defense analysts predict tough questions in the Senat e Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on avera ge 43 years old, will ultimately win the votes needed for appro val. Arizona Republican Sen. John McCain, chairman of the Comme rce Committee, blasts the deal as a government bailout of BOEIN G CO., whose commercial aircraft sales slumped after the Septe mber 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog group s are also skeptical of the deal, which has already won neede d approval from three of four congressional committees. (Reut ers 05:06 PM ET 09/02/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ===== ================================================== ========= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wro te in Message-Id: : BOEI NG CO. rejected published reports that it might have obtained riva l bidder Airbus SAS's proprietary information while nego tiating a proposed $22.5 billion refueling tanker leas e-purchase agreement with the U.S. Air Force. "Boeing beli eves we did not receive any proprietary information from an y official on any subject throughout the entire tanker leas e-negotiation process," said Doug Kennett, a spokesman for th e company. Earlier in the day, the Seattle Po st-Intelligencer, citing an unnamed source, reported what it call ed new allegations that a senior Air Force official had "pro vided Boeing with proprietary information" about Airbus's offe r to supply its own aircraft and modify them for the refu eling mission. The French-German aerospace firm that cont rols Airbus said its response to the U.S. Air Force's orig inal request for tanker bids was "proprietary in nature and wa s furnished to the Air Force in confidence." (Reu ters 01:31 PM ET 08/29/2003) More : http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ==== ================================================== ========== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrot e in Message-Id: : ------------------------------------------------------------------- AVf lash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOE ING TO FACE SENATE HEARING ON TANKER LEASE Boe ing is under scrutiny, and the heat is about to intensify on Wed nesday, when a hearing will be held by the Senate Commerce Com mittee about the planemaker's $21-billion leasing deal with the U.S . Air Force for 100 B767 aerial refueling tankers. A report issued las t week by the Congressional Budget Office concluded that "the pro posed transaction would essentially be a purchase of the tankers by t he federal government but at a cost greater than would be incurred und er the normal appropriation and procurement process." The Seattle Pos t-Intelligencer reported Friday that Boeing may have had improper acc ess to information about Airbus's competing proposal for the tanker dea l. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a lon gtime vocal critic of the lease -- which he has termed "corporate wel fare" for Boeing -- will preside over the hearing. Boeing has alr eady been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 O n Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wro te in Message-Id: : Th e U.S. Congressional Budget Office said the U.S. Air Force's pl an to lease 100 BOEING CO. 767s as refueling tankers will co st $1.3 billion to $2 billion more than an outright purchase. Th e congressional agency said the proposed lease also failed to me et four out of six conditions set for government leases by th e White House Office of Management and Budget. In a report pu blished on its web site, CBO said on average, the Air Force wo uld spent $161 million for each new refueling tanker in 2002 do llars, compared to a cost of $131 million for an outright pu rchase. Two Senate committee plan hearings on the deal next we ek. The Air Force has said the deal would be about $150 mi llion more costly than a purchase, but say leasing is pr eferable since it would allow the military to begin replacing it s aging fleet of KC-135 refueling tanker far sooner. (R euters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wr ote in Message-Id: : A key panel in the U.S. House of Representatives on Friday a pproved Air Force plans to lease 100 BOEING CO. 767 refueling t ankers, saying the lease would tie up less money in coming y ears than a purchase. "(The tanker leasing proposal) allows us t o replace the aging fleet more quickly, while retaining an e ssential combat capability over the next several decades," R ep. Duncan Hunter, chair of the House Armed Services C ommittee, said in a statement late on Friday. "For this r eason, I am endorsing the proposal by the Secretary of Defense t o lease 100 KC-767 aerial refueling tankers from the Boeing C orporation. The required notification will be sent this e vening." ( Reuters 01:58 AM ET 07/26/2003) M o http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 = ================================================== ============= O n Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera w rote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ================================================= =============== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ======================================== ======================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ======================================= ========================= On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ====================================== ========================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24eq4@ news-server.san.rr.com: BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8uqi @news-server.socal.rr.com: Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4g9i : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3s41 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ================================ ================================ On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lji0g : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtrsk3 : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8ehs : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============================= =================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8s0 : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@news 3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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BOEING CO. said it was "very optimistic" about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel. Boeing was buoyed by a measure in the 2005 Defense Authorization bill passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more. The bill would require the secretary of the Air Force to enter into a multiyear contract for new Boeing tankers after renegotiating the terms. It would also set up a panel of outside experts to make sure it made sense for taxpayers -- a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz's finding that the current plan might cost $4.5 billion more than necessary. (Reuters 04:26 PM ET 05/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 14 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld likely will stick to a "pause" on a $23.5 billion U.S. Air Force plan to lease and buy BOEING CO. refueling aircraft until completion of a study of whether new aircraft are needed, Michael Wynne, the Pentagon's top weapons buyer said on Thursday. The study, being carried out by the Air Force and known as an analysis of alternatives, could wind up by the end of this year if speeded up, said Wynne. He said he expected Rumsfeld to have taken "on board" a Pentagon advisory panel's conclusions, presented to Congress Wednesday, that the existing fleet's corrosion problems were "manageable," and that there was no need to rush on the Boeing deal. In the summary of its findings presented to Congress on Wednesday, a Defense Science Board task force said there was "no compelling material or financial reason to initiate a replacement program" before studying alternatives and how the military will use the planes. (Reuters 07:03 PM ET 05/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 13 ---------------------------------------------------------------- The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ---------------------------------------------------------------- On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 ============================================== ================== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ======================================== ======================== On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ======================================= ========================= On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================== ============================== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 =============================== ================================= On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================== ================================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================= =================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ============================ ==================================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 =========================== ===================================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ========================== ====================================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ======================= ========================================= BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ==================== ============================================ Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================= =============================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ================ ================================================ The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ================ ================================================ The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 =============== ================================================= On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressiona l Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility . (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============= ================================================== = On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics , met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professiona l staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversi al lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 =========== ================================================== === On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departme nt proposal. The Pentagon still has "not adequately justifie d spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ========== ================================================== ==== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressio nal and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on document s provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, includin g an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authorit y to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ========== ================================================== ==== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraf t as refueling tankers, a U.S. lawmaker said on Wednesday . The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republica n who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpaye rs have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon' s in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuter s 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Preside nt George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairma n John Warner, a Virginia Republican, and Carl Levin of Michiga n, the panel's top Democrat, have asked Defense Secreta ry Donald Rumsfeld to consider slashing the Air Force proposa l to lease and then buy 100 767s for $22.4 billion. The senator s have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchas e procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible referen ce to the up to 25 aircraft that Warner and Levin have suggested . (Reuter s 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ========= ================================================== ===== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slante d the Pentagon process that led to its troubled $22.4 billio n plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmit z, the Defense Department inspector general, to expand an inquir y into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease propos al from both Air Force Secretary James Roche and the Pentagon 's acting chief weapons buyer, Michael Wynne. (Reute rs 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposi ng a scaled-down lease of 25 BOEING CO. 767s tankers. "We'r e in the process of preparing our letter," said Air Force spokesw oman Gloria Cales. "We should have our response pulled togethe r later this week or early next week." Cales gave no details , but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflati on. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuter s 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force propos al to lease BOEING CO. 767s as refueling tankers, said on Frid ay he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We' ll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Servic es Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reute rs 04:23 PM ET 09/05/2003) More : http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ====== ================================================== ======== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrot e in Message-Id: : The Pentagon's Inspector General announced a formal investigation int o whether an Air Force official improperly shared data with BOEIN G CO., raising new questions about a $22.4 billion Air For ce deal to lease, then buy 100 767 tankers. Sen. John McCain cit ed the investigation and once again blasted the proposed lea se deal at a Senate Commerce Committee hearing, while Alaska Repub lican Sen. Ted Stevens underscored what he called the urgen cy of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said docum ents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extr emely aggressive sales pitch" for the deal. (Reut ers 04:11 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darle en Druyun, a former Air Force official, offered as early as Octob er 2001 to meet with investors to stress the low risk of a dea l for the Air Force to lease Boeing tankers, a BOEING CO. memor andum shows. The Pentagon's Inspector General on Wednesday launc hed a formal investigation into whether the Air Force share d proprietary data with Boeing, an inquiry defense offic ials said was focused on Druyun, who joined Boeing in Janua ry 2003 after retiring from the Air Force in November 200 2. Boeing denies it received any proprietary data during the negot iations, and Druyun had declined interview requests. The compa ny insists Druyun has not been involved in the lease negot iations since joining the company, adhering firmly to feder al rules for former defense officials. Pentagon inves tigators will try to determine if Druyun overstepped her bound s in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boein g that she played a key role early in the Air Force's negot iations with Boeing. (Reut ers 08:12 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senat e Armed Services Committee Chairman John Warner said his pan el would not rush to a vote on a controversial Air Force pla n to lease 100 BOEING CO. 767 refueling tankers, which has bee n dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue ," the Virginia Republican said at the opening of a heari ng into the $22.4 billion Air Force proposal to lease and the n buy 100 aerial tankers. Warner said members of his panel wou ld hold discussions in a closed hearing after taking testi mony from witnesses before he would schedule a vote. (Reut ers 10:26 AM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secre tary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tanke rs, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the offic ials said. (Reut ers 05:05 PM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wro te in Message-Id: : Doze ns of email exchanges among BOEING CO., the Air Force and the Pent agon released on Saturday raised fresh questions about a cont roversial $22.5 billion deal to lease, then buy 100 Boeing 76 7 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chai rman, Sen. John McCain describes as a "military-industrial ri p-off" and a government bailout of Boeing, whose commercial airc raft sales slumped after the September 2001 hijack attacks. Th e documents contain no "smoking guns," congressional sources sa y, but they show a close relationship between Boeing and Air Forc e officials, including Air Force Secretary James Roche, as we ll as details of a rival bid by Airbus SA. (Reu ters 05:11 PM ET 08/30/2003) More : http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Crit ics of a $22.4 billion Air Force proposal to lease, then buy, 10 0 Boeing 767s as refueling tankers plan to raise financing and co st concerns at a Senate hearing on Wednesday in a final bid to bloc k the deal. Defense analysts predict tough questions in the Sena te Commerce Committee and other hearings this week, but say th e need to replace the Air Force's KC-135 tankers, which are on aver age 43 years old, will ultimately win the votes needed for appr oval. Arizona Republican Sen. John McCain, chairman of the Comm erce Committee, blasts the deal as a government bailout of BOEI NG CO., whose commercial aircraft sales slumped after the Sept ember 2001 hijack attacks. The Congressional Budget Office, th e General Accounting Office and several government watchdog grou ps are also skeptical of the deal, which has already won need ed approval from three of four congressional committees. (Reu ters 05:06 PM ET 09/02/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ==== ================================================== ========== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrot e in Message-Id: : BOE ING CO. rejected published reports that it might have obtained riv al bidder Airbus SAS's proprietary information while neg otiating a proposed $22.5 billion refueling tanker lea se-purchase agreement with the U.S. Air Force. "Boeing bel ieves we did not receive any proprietary information from a ny official on any subject throughout the entire tanker lea se-negotiation process," said Doug Kennett, a spokesman for t he company. Earlier in the day, the Seattle Pos t-Intelligencer, citing an unnamed source, reported what it cal led new allegations that a senior Air Force official had "pr ovided Boeing with proprietary information" about Airbus's off er to supply its own aircraft and modify them for the ref ueling mission. The French-German aerospace firm that con trols Airbus said its response to the U.S. Air Force's ori ginal request for tanker bids was "proprietary in nature and w as furnished to the Air Force in confidence." (Re uters 01:31 PM ET 08/29/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 === ================================================== =========== O n Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wro te in Message-Id: : ------------------------------------------------------------------- AV flash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BO EING TO FACE SENATE HEARING ON TANKER LEASE Bo eing is under scrutiny, and the heat is about to intensify on We dnesday, when a hearing will be held by the Senate Commerce Co mmittee about the planemaker's $21-billion leasing deal with the U. S. Air Force for 100 B767 aerial refueling tankers. A report issued la st week by the Congressional Budget Office concluded that "the pr oposed transaction would essentially be a purchase of the tankers by th e federal government but at a cost greater than would be incurred un der the normal appropriation and procurement process." The Seattle Po st-Intelligencer reported Friday that Boeing may have had improper ac cess to information about Airbus's competing proposal for the tanker de al. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a lo ngtime vocal critic of the lease -- which he has termed "corporate we lfare" for Boeing -- will preside over the hearing. Boeing has al ready been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wr ote in Message-Id: : T he U.S. Congressional Budget Office said the U.S. Air Force's p lan to lease 100 BOEING CO. 767s as refueling tankers will c ost $1.3 billion to $2 billion more than an outright purchase. T he congressional agency said the proposed lease also failed to m eet four out of six conditions set for government leases by t he White House Office of Management and Budget. In a report p ublished on its web site, CBO said on average, the Air Force w ould spent $161 million for each new refueling tanker in 2002 d ollars, compared to a cost of $131 million for an outright p urchase. Two Senate committee plan hearings on the deal next w eek. The Air Force has said the deal would be about $150 m illion more costly than a purchase, but say leasing is p referable since it would allow the military to begin replacing i ts aging fleet of KC-135 refueling tanker far sooner. ( Reuters 04:27 PM ET 08/26/2003) M o http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- O n Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera w rote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================================================== ============== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ================================================ ================ On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ======================================= ========================= On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ====================================== ========================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ===================================== =========================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24eq4 @news-server.san.rr.com: BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8uq : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4g9 : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3s4 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 =============================== ================================= On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lji0 : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtrsk : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8eh : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============================ ==================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8s : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@new s3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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The U.S. Air Force failed to use a true competitive process to choose BOEING CO. over Europe's Airbus for a stalled $20 billion-plus plan to lease and buy refueling aircraft, according to a Pentagon-commissioned report. The analysis by the Industrial College of the Armed Forces, obtained by Reuters on Wednesday, also says the Air Force appeared to have made "only limited use of considerable government buying power and leverage to obtain maximum discounts." The report, which has not been officially released, is one of a series of studies requested by Defense Secretary Donald Rumsfeld to help decide the fate of the Air Force plan to lease 20 modified Boeing 767 tankers and buy 80 more. A Defense Science Board task force has already said there is no compelling reason to rush to replace the existing KC-135 tankers and the Defense Department's inspector general has said the $23.5 billion project, as negotiated by the Air Force, could cost $4.5 billion more than necessary. (Reuters 08:20 PM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 19 ---------------------------------------------------------------- LOCKHEED MARTIN CORP. quietly proposed an all-new aerial refueling tanker in 2002 before the U.S. Air Force instead pursued a now-stalled $23.5 billion deal with BOEING CO. based on the 767 airliner, Lockheed acknowledged. The Pentagon's largest supplier, Lockheed is leaving open the possibility of reviving its pitch if the military calls for a new contest, which could further complicate Boeing's hopes to lease and sell 100 modified 767s. A copy of the previously undisclosed proposal was obtained by Reuters from a source outside the company who declined to be named. Lockheed spokesman Thomas Jurkowsky confirmed it was authentic and said it came from a Lockheed advanced development project office in response to a feeler from the Air Force. (Reuters 02:00 PM ET 05/21/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 21 ---------------------------------------------------------------- BOEING CO. said that its tanker program "is not dead" since its U.S. Air Force customer still wants to go ahead with its plan to lease and buy refueling aircraft from the aircraft maker. "The tanker is not dead," said Boeing CEO Harry Stonecipher in an address to institutional investors in New York. "The customer has not changed their mind one iota about the 767 tanker program." (Reuters 08:34 AM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19 ---------------------------------------------------------------- On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it was "very optimistic" about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel. Boeing was buoyed by a measure in the 2005 Defense Authorization bill passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more. The bill would require the secretary of the Air Force to enter into a multiyear contract for new Boeing tankers after renegotiating the terms. It would also set up a panel of outside experts to make sure it made sense for taxpayers -- a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz's finding that the current plan might cost $4.5 billion more than necessary. (Reuters 04:26 PM ET 05/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 14 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld likely will stick to a "pause" on a $23.5 billion U.S. Air Force plan to lease and buy BOEING CO. refueling aircraft until completion of a study of whether new aircraft are needed, Michael Wynne, the Pentagon's top weapons buyer said on Thursday. The study, being carried out by the Air Force and known as an analysis of alternatives, could wind up by the end of this year if speeded up, said Wynne. He said he expected Rumsfeld to have taken "on board" a Pentagon advisory panel's conclusions, presented to Congress Wednesday, that the existing fleet's corrosion problems were "manageable," and that there was no need to rush on the Boeing deal. In the summary of its findings presented to Congress on Wednesday, a Defense Science Board task force said there was "no compelling material or financial reason to initiate a replacement program" before studying alternatives and how the military will use the planes. (Reuters 07:03 PM ET 05/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 13 ---------------------------------------------------------------- The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ---------------------------------------------------------------- On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 ============================================= =================== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ======================================= ========================= On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ====================================== ========================== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================= =============================== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================== ================================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================= =================================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================ ==================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 =========================== ===================================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================== ====================================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ========================= ======================================= On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ====================== ========================================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 =================== ============================================= Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================ ================================================ A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 =============== ================================================= The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 =============== ================================================= The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressiona l reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============== ================================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congression al Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibilit y. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisitio n and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============ ================================================== == On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistic s, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate profession al staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controvers ial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committe e is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========== ================================================== ==== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departmen t proposal. The Pentagon still has "not adequately justifi ed spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuter s 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ========= ================================================== ===== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressi onal and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documen ts provided by Boeing to Senate Commerce Committee Chairma n McCain, an Arizona Republican. But investigators, includi ng an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuter s 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authori ty to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the deliver y schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuter s 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ========= ================================================== ===== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircra ft as refueling tankers, a U.S. lawmaker said on Wednesda y. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republic an who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayer s have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon 's in-house watchdog has carried out a preliminary inquir y into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reute rs 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Presiden t George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairm an John Warner, a Virginia Republican, and Carl Levin of Michigan , the panel's top Democrat, have asked Defense Secretar y Donald Rumsfeld to consider slashing the Air Force propos al to lease and then buy 100 767s for $22.4 billion. The senato rs have suggested leasing no more than 25 767s while gettin g the rest of any needed tankers through standard purcha se procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible referenc e to the up to 25 aircraft that Warner and Levin have suggeste d. (Reute rs 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======== ================================================== ====== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slant ed the Pentagon process that led to its troubled $22.4 billi on plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz , the Defense Department inspector general, to expand an inqui ry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donal d Rumsfeld to provide all records relating to the lease proposa l from both Air Force Secretary James Roche and the Pentago n's acting chief weapons buyer, Michael Wynne. (Reuter s 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee propos ing a scaled-down lease of 25 BOEING CO. 767s tankers. "We' re in the process of preparing our letter," said Air Force spokes woman Gloria Cales. "We should have our response pulled togeth er later this week or early next week." Cales gave no detail s, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewe r airplanes, due to lost volume discounts and the impact of inflat ion. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reute rs 06:17 PM ET 09/08/2003) More : http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrot e in Message-Id: : Sen . John McCain, who has criticized the cost of a U.S. Air Force propo sal to lease BOEING CO. 767s as refueling tankers, said on Frida y he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'l l be asking for as much information as we can get," McCain sai d in a telephone interview, 1 day after the Senate Armed Servi ces Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reut ers 04:23 PM ET 09/05/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ===== ================================================== ========= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wro te in Message-Id: : Th e Pentagon's Inspector General announced a formal investigation in to whether an Air Force official improperly shared data with BOEI NG CO., raising new questions about a $22.4 billion Air Forc e deal to lease, then buy 100 767 tankers. Sen. John McCain cite d the investigation and once again blasted the proposed leas e deal at a Senate Commerce Committee hearing, while Alaska Repu blican Sen. Ted Stevens underscored what he called the urge ncy of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said docu ments provided by Chicago-based Boeing, the Air Force and th e Pentagon which prompted the investigation showed an "ext remely aggressive sales pitch" for the deal. (Reu ters 04:11 PM ET 09/03/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darl een Druyun, a former Air Force official, offered as early as Octo ber 2001 to meet with investors to stress the low risk of a de al for the Air Force to lease Boeing tankers, a BOEING CO. memo randum shows. The Pentagon's Inspector General on Wednesday laun ched a formal investigation into whether the Air Force shar ed proprietary data with Boeing, an inquiry defense offi cials said was focused on Druyun, who joined Boeing in Janu ary 2003 after retiring from the Air Force in November 2002 . Boeing denies it received any proprietary data during the nego tiations, and Druyun had declined interview requests. The comp any insists Druyun has not been involved in the lease nego tiations since joining the company, adhering firmly to fede ral rules for former defense officials. Pentagon inve stigators will try to determine if Druyun overstepped her boun ds in those discussions, but congressional sources said it wa s clear from a series of emails provided to lawmakers by Boei ng that she played a key role early in the Air Force's nego tiations with Boeing. (Reu ters 08:12 PM ET 09/03/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Sena te Armed Services Committee Chairman John Warner said his pane l would not rush to a vote on a controversial Air Force pl an to lease 100 BOEING CO. 767 refueling tankers, which has be en dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issu e," the Virginia Republican said at the opening of a hear ing into the $22.4 billion Air Force proposal to lease and th en buy 100 aerial tankers. Warner said members of his panel woul d hold discussions in a closed hearing after taking test imony from witnesses before he would schedule a vote. (Reu ters 10:26 AM ET 09/04/2003) More : http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- Th e U.S. Senate Armed Services Committee has asked Defense Secr etary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tank ers, officials said. The committee will postpone a vote on th e Air Force's plan until it gets a Pentagon analysis, the offi cials said. (Reu ters 05:05 PM ET 09/04/2003) More : http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrot e in Message-Id: : Doz ens of email exchanges among BOEING CO., the Air Force and the Pen tagon released on Saturday raised fresh questions about a con troversial $22.5 billion deal to lease, then buy 100 Boeing 7 67 tankers. The documents were among more than 8,000 provided t o the Senate Commerce Committee as it investigated a deal its cha irman, Sen. John McCain describes as a "military-industrial r ip-off" and a government bailout of Boeing, whose commercial air craft sales slumped after the September 2001 hijack attacks. T he documents contain no "smoking guns," congressional sources say , but they show a close relationship between Boeing and Air For ce officials, including Air Force Secretary James Roche, as wel l as details of a rival bid by Airbus SA. (Re uters 05:11 PM ET 08/30/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Cri tics of a $22.4 billion Air Force proposal to lease, then buy, 1 00 Boeing 767s as refueling tankers plan to raise financing and cos t concerns at a Senate hearing on Wednesday in a final bid to blo ck the deal. Defense analysts predict tough questions in the Sen ate Commerce Committee and other hearings this week, but say t he need to replace the Air Force's KC-135 tankers, which are on ave rage 43 years old, will ultimately win the votes needed for app roval. Arizona Republican Sen. John McCain, chairman of the Com merce Committee, blasts the deal as a government bailout of BOE ING CO., whose commercial aircraft sales slumped after the Sep tember 2001 hijack attacks. The Congressional Budget Office, t he General Accounting Office and several government watchdog gro ups are also skeptical of the deal, which has already won nee ded approval from three of four congressional committees. (Re uters 05:06 PM ET 09/02/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 === ================================================== =========== O n Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wro te in Message-Id: : BO EING CO. rejected published reports that it might have obtained ri val bidder Airbus SAS's proprietary information while ne gotiating a proposed $22.5 billion refueling tanker le ase-purchase agreement with the U.S. Air Force. "Boeing be lieves we did not receive any proprietary information from an y official on any subject throughout the entire tanker le ase-negotiation process," said Doug Kennett, a spokesman for th e company. Earlier in the day, the Seattle Po st-Intelligencer, citing an unnamed source, reported what it ca lled new allegations that a senior Air Force official had "p rovided Boeing with proprietary information" about Airbus's of fer to supply its own aircraft and modify them for the re fueling mission. The French-German aerospace firm that co ntrols Airbus said its response to the U.S. Air Force's or iginal request for tanker bids was "proprietary in nature and wa s furnished to the Air Force in confidence." (R euters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 == ================================================== ============ On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wr ote in Message-Id: : ------------------------------------------------------------------- A Vflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- B OEING TO FACE SENATE HEARING ON TANKER LEASE B oeing is under scrutiny, and the heat is about to intensify on W ednesday, when a hearing will be held by the Senate Commerce C ommittee about the planemaker's $21-billion leasing deal with the U .S. Air Force for 100 B767 aerial refueling tankers. A report issued l ast week by the Congressional Budget Office concluded that "the p roposed transaction would essentially be a purchase of the tankers by t he federal government but at a cost greater than would be incurred u nder the normal appropriation and procurement process." The Seattle P ost-Intelligencer reported Friday that Boeing may have had improper a ccess to information about Airbus's competing proposal for the tanker d eal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a l ongtime vocal critic of the lease -- which he has termed "corporate w elfare" for Boeing -- will preside over the hearing. Boeing has a lready been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 O n Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera w rote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================================================= =============== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 =============================================== ================= On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ====================================== ========================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ===================================== =========================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ==================================== ============================ On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24eq : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8u : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4g : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3s : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================== ================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lji : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtrs : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8e : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =========================== ===================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8 : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@ne ws3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknq ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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Defense Secretary Donald Rumsfeld will defer any decision on replacing the Air Force's aerial refueling tankers until two more studies are completed by November, the Pentagon said on Tuesday. Congressional sources said Pentagon officials told them Rumsfeld had decided "not to proceed forward" with a now-suspended $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 tankers. But Pentagon spokeswoman Cheryl Irwin said the deal was "being deferred until November, not scrapped." The Pentagon statement did not specifically mention the lease and purchase plan but cited a separate Pentagon report this month which concluded that corrosion problems with the aging current fleet of KC-135 tankers could be managed. The congressional sources said they were told that even if the Air Force analysis of alternatives selected an option to lease refueling aircraft, the current Air Force deal with the company would have to be "negotiated anew." (Reuters 06:08 PM ET 05/25/2004) Mo http://q1.schwab.com/s/r?l=248&a=965...a&s=rb0405 25 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld has decided to scrap a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. aerial refueling tankers, congressional and defense sources said. Rumsfeld ordered two more studies on the need to replace the current fleet of aging KC-135 tankers to be completed by Nov. 1, which would allow funding to be included in the Bush administration's fiscal-year 2006 budget request, the sources said. Pentagon officials called lawmakers to inform them of the decision, noting that even if a formal analysis of the alternatives recommended leasing tankers, the Air Force deal with Chicago-based Boeing would have to be renegotiated. (Reuters 04:45 PM ET 05/25/2004) Mo http://q1.schwab.com/s/r?l=248&a=965...a&s=rb0405 25 ---------------------------------------------------------------- On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force failed to use a true competitive process to choose BOEING CO. over Europe's Airbus for a stalled $20 billion-plus plan to lease and buy refueling aircraft, according to a Pentagon-commissioned report. The analysis by the Industrial College of the Armed Forces, obtained by Reuters on Wednesday, also says the Air Force appeared to have made "only limited use of considerable government buying power and leverage to obtain maximum discounts." The report, which has not been officially released, is one of a series of studies requested by Defense Secretary Donald Rumsfeld to help decide the fate of the Air Force plan to lease 20 modified Boeing 767 tankers and buy 80 more. A Defense Science Board task force has already said there is no compelling reason to rush to replace the existing KC-135 tankers and the Defense Department's inspector general has said the $23.5 billion project, as negotiated by the Air Force, could cost $4.5 billion more than necessary. (Reuters 08:20 PM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 19 ---------------------------------------------------------------- LOCKHEED MARTIN CORP. quietly proposed an all-new aerial refueling tanker in 2002 before the U.S. Air Force instead pursued a now-stalled $23.5 billion deal with BOEING CO. based on the 767 airliner, Lockheed acknowledged. The Pentagon's largest supplier, Lockheed is leaving open the possibility of reviving its pitch if the military calls for a new contest, which could further complicate Boeing's hopes to lease and sell 100 modified 767s. A copy of the previously undisclosed proposal was obtained by Reuters from a source outside the company who declined to be named. Lockheed spokesman Thomas Jurkowsky confirmed it was authentic and said it came from a Lockheed advanced development project office in response to a feeler from the Air Force. (Reuters 02:00 PM ET 05/21/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 21 ---------------------------------------------------------------- BOEING CO. said that its tanker program "is not dead" since its U.S. Air Force customer still wants to go ahead with its plan to lease and buy refueling aircraft from the aircraft maker. "The tanker is not dead," said Boeing CEO Harry Stonecipher in an address to institutional investors in New York. "The customer has not changed their mind one iota about the 767 tanker program." (Reuters 08:34 AM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19 ---------------------------------------------------------------- On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it was "very optimistic" about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel. Boeing was buoyed by a measure in the 2005 Defense Authorization bill passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more. The bill would require the secretary of the Air Force to enter into a multiyear contract for new Boeing tankers after renegotiating the terms. It would also set up a panel of outside experts to make sure it made sense for taxpayers -- a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz's finding that the current plan might cost $4.5 billion more than necessary. (Reuters 04:26 PM ET 05/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 14 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld likely will stick to a "pause" on a $23.5 billion U.S. Air Force plan to lease and buy BOEING CO. refueling aircraft until completion of a study of whether new aircraft are needed, Michael Wynne, the Pentagon's top weapons buyer said on Thursday. The study, being carried out by the Air Force and known as an analysis of alternatives, could wind up by the end of this year if speeded up, said Wynne. He said he expected Rumsfeld to have taken "on board" a Pentagon advisory panel's conclusions, presented to Congress Wednesday, that the existing fleet's corrosion problems were "manageable," and that there was no need to rush on the Boeing deal. In the summary of its findings presented to Congress on Wednesday, a Defense Science Board task force said there was "no compelling material or financial reason to initiate a replacement program" before studying alternatives and how the military will use the planes. (Reuters 07:03 PM ET 05/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 13 ---------------------------------------------------------------- The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ---------------------------------------------------------------- On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 ============================================ ==================== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ====================================== ========================== On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ===================================== =========================== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================ ================================ On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================= =================================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================ ==================================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 =========================== ===================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================== ====================================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================= ======================================= On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================== ======================================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ===================== =========================================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================== ============================================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 =============== ================================================= A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============== ================================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============== ================================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congression al reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============= ================================================== = On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressiona l Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibili ty. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisiti on and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 =========== ================================================== === On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright , rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committe e put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics , met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professio nal staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controver sial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committ ee is the final of four congressional panels to review the deal. The other three have approved it. (Reuter s 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========= ================================================== ===== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departme nt proposal. The Pentagon still has "not adequately justifie d spending what it now acknowledges will be billions of dollar s more to acquire tankers through a lease," McCain, an Arizon a Republican, said in letters to the armed services panel' s leaders. McCain's new qualms could translate into furthe r delays for the tanker deal -- a plan to lease a major weapon s system for the first time rather than buy it outright. (Reute rs 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======== ================================================== ====== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billio n deal to lease then buy 100 Boeing 767 tankers, congress ional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusua l move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on document s provided by Boeing to Senate Commerce Committee Chairm an McCain, an Arizona Republican. But investigators, includin g an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reute rs 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authorit y to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defens e Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delive ry schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reute rs 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======== ================================================== ====== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a forma l investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraf t as refueling tankers, a U.S. lawmaker said on Wednesd ay. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a forma l investigation, said Sen. John McCain, an Arizona Republi can who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpaye rs have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentago n's in-house watchdog has carried out a preliminary inqui ry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuter s 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Preside nt George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairma n John Warner, a Virginia Republican, and Carl Levin of Michiga n, the panel's top Democrat, have asked Defense Secreta ry Donald Rumsfeld to consider slashing the Air Force proposa l to lease and then buy 100 767s for $22.4 billion. The senator s have suggested leasing no more than 25 767s while getti ng the rest of any needed tankers through standard purchas e procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible referen ce to the up to 25 aircraft that Warner and Levin have suggest ed. (Reuter s 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======= ================================================== ======= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slante d the Pentagon process that led to its troubled $22.4 billio n plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct migh t have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmit z, the Defense Department inspector general, to expand an inquir y into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Dona ld Rumsfeld to provide all records relating to the lease propos al from both Air Force Secretary James Roche and the Pentag on's acting chief weapons buyer, Michael Wynne. (Reute rs 08:38 PM ET 09/11/2003) More : http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrot e in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early nex t week to a letter from the Senate Armed Services Committee propo sing a scaled-down lease of 25 BOEING CO. 767s tankers. "We'r e in the process of preparing our letter," said Air Force spoke swoman Gloria Cales. "We should have our response pulled toget her later this week or early next week." Cales gave no detai ls, but Air Force acquisitions chief Marvin Sambur last wee k said it would be "significantly more expensive" to lease few er airplanes, due to lost volume discounts and the impact of infla tion. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reut ers 06:17 PM ET 09/08/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wro te in Message-Id: : Se n. John McCain, who has criticized the cost of a U.S. Air Force prop osal to lease BOEING CO. 767s as refueling tankers, said on Frid ay he would press Air Force Secretary James Roche and other to p Pentagon officials to hand over all records on the deal. "We' ll be asking for as much information as we can get," McCain sa id in a telephone interview, 1 day after the Senate Armed Serv ices Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reu ters 04:23 PM ET 09/05/2003) More : http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ==== ================================================== ========== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrot e in Message-Id: : T he Pentagon's Inspector General announced a formal investigation int o whether an Air Force official improperly shared data with BOE ING CO., raising new questions about a $22.4 billion Air For ce deal to lease, then buy 100 767 tankers. Sen. John McCain cit ed the investigation and once again blasted the proposed lea se deal at a Senate Commerce Committee hearing, while Alaska Rep ublican Sen. Ted Stevens underscored what he called the urg ency of quickly replacing the Air Force's aging fleet of K C-135 tankers due to increased wartime use. McCain said doc uments provided by Chicago-based Boeing, the Air Force and t he Pentagon which prompted the investigation showed an "ex tremely aggressive sales pitch" for the deal. (Re uters 04:11 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Dar leen Druyun, a former Air Force official, offered as early as Oct ober 2001 to meet with investors to stress the low risk of a dea l for the Air Force to lease Boeing tankers, a BOEING CO. mem orandum shows. The Pentagon's Inspector General on Wednesday lau nched a formal investigation into whether the Air Force sha red proprietary data with Boeing, an inquiry defense off icials said was focused on Druyun, who joined Boeing in Jan uary 2003 after retiring from the Air Force in November 200 2. Boeing denies it received any proprietary data during the neg otiations, and Druyun had declined interview requests. The com pany insists Druyun has not been involved in the lease neg otiations since joining the company, adhering firmly to fed eral rules for former defense officials. Pentagon inv estigators will try to determine if Druyun overstepped her bou nds in those discussions, but congressional sources said it w as clear from a series of emails provided to lawmakers by Boe ing that she played a key role early in the Air Force's neg otiations with Boeing. (Re uters 08:12 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Sen ate Armed Services Committee Chairman John Warner said his pan el would not rush to a vote on a controversial Air Force pla n to lease 100 BOEING CO. 767 refueling tankers, which has bee n dogged by questions about its cost and propriety. "We owe a n obligation to the taxpayers to very carefully assess this iss ue," the Virginia Republican said at the opening of a hea ring into the $22.4 billion Air Force proposal to lease and the n buy 100 aerial tankers. Warner said members of his panel wou ld hold discussions in a closed hearing after taking tes timony from witnesses before he would schedule a vote. (Re uters 10:26 AM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- T he U.S. Senate Armed Services Committee has asked Defense Sec retary Donald Rumsfeld to look at leasing just one quarter o f the 100 BOEING CO. 767s sought by the Air Force as refueling tan kers, officials said. The committee will postpone a vote on t he Air Force's plan until it gets a Pentagon analysis, the off icials said. (Re uters 05:05 PM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- O n Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wro te in Message-Id: : Do zens of email exchanges among BOEING CO., the Air Force and the Pe ntagon released on Saturday raised fresh questions about a co ntroversial $22.5 billion deal to lease, then buy 100 Boeing 76 7 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its ch airman, Sen. John McCain describes as a "military-industrial ri p-off" and a government bailout of Boeing, whose commercial ai rcraft sales slumped after the September 2001 hijack attacks. Th e documents contain no "smoking guns," congressional sources sa y, but they show a close relationship between Boeing and Air Fo rce officials, including Air Force Secretary James Roche, as we ll as details of a rival bid by Airbus SA. (R euters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Cr itics of a $22.4 billion Air Force proposal to lease, then buy, 10 0 Boeing 767s as refueling tankers plan to raise financing and co st concerns at a Senate hearing on Wednesday in a final bid to bl ock the deal. Defense analysts predict tough questions in the Se nate Commerce Committee and other hearings this week, but say th e need to replace the Air Force's KC-135 tankers, which are on av erage 43 years old, will ultimately win the votes needed for ap proval. Arizona Republican Sen. John McCain, chairman of the Co mmerce Committee, blasts the deal as a government bailout of BO EING CO., whose commercial aircraft sales slumped after the Se ptember 2001 hijack attacks. The Congressional Budget Office, th e General Accounting Office and several government watchdog gr oups are also skeptical of the deal, which has already won ne eded approval from three of four congressional committees. (R euters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 == ================================================== ============ On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wr ote in Message-Id: : B OEING CO. rejected published reports that it might have obtained r ival bidder Airbus SAS's proprietary information while n egotiating a proposed $22.5 billion refueling tanker l ease-purchase agreement with the U.S. Air Force. "Boeing b elieves we did not receive any proprietary information from a ny official on any subject throughout the entire tanker l ease-negotiation process," said Doug Kennett, a spokesman for t he company. Earlier in the day, the Seattle P ost-Intelligencer, citing an unnamed source, reported what it c alled new allegations that a senior Air Force official had " provided Boeing with proprietary information" about Airbus's o ffer to supply its own aircraft and modify them for the r efueling mission. The French-German aerospace firm that c ontrols Airbus said its response to the U.S. Air Force's o riginal request for tanker bids was "proprietary in nature and w as furnished to the Air Force in confidence." ( Reuters 01:31 PM ET 08/29/2003) M o http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 = ================================================== ============= O n Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera w rote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================================================ ================ On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ============================================== ================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ===================================== =========================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ==================================== ============================ On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 =================================== ============================= On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24e : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4 : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================= =================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lj : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtr : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8 : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================== ====================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@n ews3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mkn ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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A multibillion-dollar BOEING CO. drive to supply refueling planes to the U.S. Air Force is likely to fly in some form, experts on military purchases say. On Tuesday, the Pentagon put off until at least November a decision on whether to reopen negotiations on a $23.5 billion plan to lease 20 and buy up to another 80 modified tankers based on Boeings' 767 commercial airliner. "I believe that the Air Force is going to rearrange its weapons-purchasing priorities in the future to find money for tanker modernization," said Loren Thompson, director of the Lexington Institute in Arlington, Va. Others cautioned Boeing could end up with a deal smaller than it hoped, possibly involving used aircraft, amid growing concern over rising federal budget deficits. Boeing's chief rival in the business is Airbus parent EADS, which says it is ready to compete if the Pentagon seeks new bids for tankers. But many lawmakers have made clear they would oppose giving a non-U.S. company any such contract. (Reuters 01:40 PM ET 05/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=965...a&s=rb0405 27 ---------------------------------------------------------------- On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force failed to use a true competitive process to choose BOEING CO. over Europe's Airbus for a stalled $20 billion-plus plan to lease and buy refueling aircraft, according to a Pentagon-commissioned report. The analysis by the Industrial College of the Armed Forces, obtained by Reuters on Wednesday, also says the Air Force appeared to have made "only limited use of considerable government buying power and leverage to obtain maximum discounts." The report, which has not been officially released, is one of a series of studies requested by Defense Secretary Donald Rumsfeld to help decide the fate of the Air Force plan to lease 20 modified Boeing 767 tankers and buy 80 more. A Defense Science Board task force has already said there is no compelling reason to rush to replace the existing KC-135 tankers and the Defense Department's inspector general has said the $23.5 billion project, as negotiated by the Air Force, could cost $4.5 billion more than necessary. (Reuters 08:20 PM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 19 ---------------------------------------------------------------- LOCKHEED MARTIN CORP. quietly proposed an all-new aerial refueling tanker in 2002 before the U.S. Air Force instead pursued a now-stalled $23.5 billion deal with BOEING CO. based on the 767 airliner, Lockheed acknowledged. The Pentagon's largest supplier, Lockheed is leaving open the possibility of reviving its pitch if the military calls for a new contest, which could further complicate Boeing's hopes to lease and sell 100 modified 767s. A copy of the previously undisclosed proposal was obtained by Reuters from a source outside the company who declined to be named. Lockheed spokesman Thomas Jurkowsky confirmed it was authentic and said it came from a Lockheed advanced development project office in response to a feeler from the Air Force. (Reuters 02:00 PM ET 05/21/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 21 ---------------------------------------------------------------- BOEING CO. said that its tanker program "is not dead" since its U.S. Air Force customer still wants to go ahead with its plan to lease and buy refueling aircraft from the aircraft maker. "The tanker is not dead," said Boeing CEO Harry Stonecipher in an address to institutional investors in New York. "The customer has not changed their mind one iota about the 767 tanker program." (Reuters 08:34 AM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19 ---------------------------------------------------------------- On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it was "very optimistic" about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel. Boeing was buoyed by a measure in the 2005 Defense Authorization bill passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more. The bill would require the secretary of the Air Force to enter into a multiyear contract for new Boeing tankers after renegotiating the terms. It would also set up a panel of outside experts to make sure it made sense for taxpayers -- a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz's finding that the current plan might cost $4.5 billion more than necessary. (Reuters 04:26 PM ET 05/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 14 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld likely will stick to a "pause" on a $23.5 billion U.S. Air Force plan to lease and buy BOEING CO. refueling aircraft until completion of a study of whether new aircraft are needed, Michael Wynne, the Pentagon's top weapons buyer said on Thursday. The study, being carried out by the Air Force and known as an analysis of alternatives, could wind up by the end of this year if speeded up, said Wynne. He said he expected Rumsfeld to have taken "on board" a Pentagon advisory panel's conclusions, presented to Congress Wednesday, that the existing fleet's corrosion problems were "manageable," and that there was no need to rush on the Boeing deal. In the summary of its findings presented to Congress on Wednesday, a Defense Science Board task force said there was "no compelling material or financial reason to initiate a replacement program" before studying alternatives and how the military will use the planes. (Reuters 07:03 PM ET 05/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 13 ---------------------------------------------------------------- The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ---------------------------------------------------------------- On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 ============================================ ==================== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ====================================== ========================== On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ===================================== =========================== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================ ================================ On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================= =================================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================ ==================================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 =========================== ===================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================== ====================================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================= ======================================= On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================== ======================================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ===================== =========================================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================== ============================================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 =============== ================================================= A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============== ================================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============== ================================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congression al reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============= ================================================== = On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressiona l Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibili ty. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisiti on and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 =========== ================================================== === On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright , rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committe e put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics , met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professio nal staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controver sial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committ ee is the final of four congressional panels to review the deal. The other three have approved it. (Reuter s 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========= ================================================== ===== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departme nt proposal. The Pentagon still has "not adequately justifie d spending what it now acknowledges will be billions of dollar s more to acquire tankers through a lease," McCain, an Arizon a Republican, said in letters to the armed services panel' s leaders. McCain's new qualms could translate into furthe r delays for the tanker deal -- a plan to lease a major weapon s system for the first time rather than buy it outright. (Reute rs 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======== ================================================== ====== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billio n deal to lease then buy 100 Boeing 767 tankers, congress ional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusua l move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on document s provided by Boeing to Senate Commerce Committee Chairm an McCain, an Arizona Republican. But investigators, includin g an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reute rs 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authorit y to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defens e Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delive ry schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reute rs 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======== ================================================== ====== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a forma l investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraf t as refueling tankers, a U.S. lawmaker said on Wednesd ay. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a forma l investigation, said Sen. John McCain, an Arizona Republi can who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpaye rs have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentago n's in-house watchdog has carried out a preliminary inqui ry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuter s 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Preside nt George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairma n John Warner, a Virginia Republican, and Carl Levin of Michiga n, the panel's top Democrat, have asked Defense Secreta ry Donald Rumsfeld to consider slashing the Air Force proposa l to lease and then buy 100 767s for $22.4 billion. The senator s have suggested leasing no more than 25 767s while getti ng the rest of any needed tankers through standard purchas e procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible referen ce to the up to 25 aircraft that Warner and Levin have suggest ed. (Reuter s 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======= ================================================== ======= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slante d the Pentagon process that led to its troubled $22.4 billio n plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct migh t have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmit z, the Defense Department inspector general, to expand an inquir y into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Dona ld Rumsfeld to provide all records relating to the lease propos al from both Air Force Secretary James Roche and the Pentag on's acting chief weapons buyer, Michael Wynne. (Reute rs 08:38 PM ET 09/11/2003) More : http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrot e in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early nex t week to a letter from the Senate Armed Services Committee propo sing a scaled-down lease of 25 BOEING CO. 767s tankers. "We'r e in the process of preparing our letter," said Air Force spoke swoman Gloria Cales. "We should have our response pulled toget her later this week or early next week." Cales gave no detai ls, but Air Force acquisitions chief Marvin Sambur last wee k said it would be "significantly more expensive" to lease few er airplanes, due to lost volume discounts and the impact of infla tion. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reut ers 06:17 PM ET 09/08/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wro te in Message-Id: : Se n. John McCain, who has criticized the cost of a U.S. Air Force prop osal to lease BOEING CO. 767s as refueling tankers, said on Frid ay he would press Air Force Secretary James Roche and other to p Pentagon officials to hand over all records on the deal. "We' ll be asking for as much information as we can get," McCain sa id in a telephone interview, 1 day after the Senate Armed Serv ices Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reu ters 04:23 PM ET 09/05/2003) More : http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ==== ================================================== ========== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrot e in Message-Id: : T he Pentagon's Inspector General announced a formal investigation int o whether an Air Force official improperly shared data with BOE ING CO., raising new questions about a $22.4 billion Air For ce deal to lease, then buy 100 767 tankers. Sen. John McCain cit ed the investigation and once again blasted the proposed lea se deal at a Senate Commerce Committee hearing, while Alaska Rep ublican Sen. Ted Stevens underscored what he called the urg ency of quickly replacing the Air Force's aging fleet of K C-135 tankers due to increased wartime use. McCain said doc uments provided by Chicago-based Boeing, the Air Force and t he Pentagon which prompted the investigation showed an "ex tremely aggressive sales pitch" for the deal. (Re uters 04:11 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Dar leen Druyun, a former Air Force official, offered as early as Oct ober 2001 to meet with investors to stress the low risk of a dea l for the Air Force to lease Boeing tankers, a BOEING CO. mem orandum shows. The Pentagon's Inspector General on Wednesday lau nched a formal investigation into whether the Air Force sha red proprietary data with Boeing, an inquiry defense off icials said was focused on Druyun, who joined Boeing in Jan uary 2003 after retiring from the Air Force in November 200 2. Boeing denies it received any proprietary data during the neg otiations, and Druyun had declined interview requests. The com pany insists Druyun has not been involved in the lease neg otiations since joining the company, adhering firmly to fed eral rules for former defense officials. Pentagon inv estigators will try to determine if Druyun overstepped her bou nds in those discussions, but congressional sources said it w as clear from a series of emails provided to lawmakers by Boe ing that she played a key role early in the Air Force's neg otiations with Boeing. (Re uters 08:12 PM ET 09/03/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Sen ate Armed Services Committee Chairman John Warner said his pan el would not rush to a vote on a controversial Air Force pla n to lease 100 BOEING CO. 767 refueling tankers, which has bee n dogged by questions about its cost and propriety. "We owe a n obligation to the taxpayers to very carefully assess this iss ue," the Virginia Republican said at the opening of a hea ring into the $22.4 billion Air Force proposal to lease and the n buy 100 aerial tankers. Warner said members of his panel wou ld hold discussions in a closed hearing after taking tes timony from witnesses before he would schedule a vote. (Re uters 10:26 AM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- T he U.S. Senate Armed Services Committee has asked Defense Sec retary Donald Rumsfeld to look at leasing just one quarter o f the 100 BOEING CO. 767s sought by the Air Force as refueling tan kers, officials said. The committee will postpone a vote on t he Air Force's plan until it gets a Pentagon analysis, the off icials said. (Re uters 05:05 PM ET 09/04/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- O n Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wro te in Message-Id: : Do zens of email exchanges among BOEING CO., the Air Force and the Pe ntagon released on Saturday raised fresh questions about a co ntroversial $22.5 billion deal to lease, then buy 100 Boeing 76 7 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its ch airman, Sen. John McCain describes as a "military-industrial ri p-off" and a government bailout of Boeing, whose commercial ai rcraft sales slumped after the September 2001 hijack attacks. Th e documents contain no "smoking guns," congressional sources sa y, but they show a close relationship between Boeing and Air Fo rce officials, including Air Force Secretary James Roche, as we ll as details of a rival bid by Airbus SA. (R euters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Cr itics of a $22.4 billion Air Force proposal to lease, then buy, 10 0 Boeing 767s as refueling tankers plan to raise financing and co st concerns at a Senate hearing on Wednesday in a final bid to bl ock the deal. Defense analysts predict tough questions in the Se nate Commerce Committee and other hearings this week, but say th e need to replace the Air Force's KC-135 tankers, which are on av erage 43 years old, will ultimately win the votes needed for ap proval. Arizona Republican Sen. John McCain, chairman of the Co mmerce Committee, blasts the deal as a government bailout of BO EING CO., whose commercial aircraft sales slumped after the Se ptember 2001 hijack attacks. The Congressional Budget Office, th e General Accounting Office and several government watchdog gr oups are also skeptical of the deal, which has already won ne eded approval from three of four congressional committees. (R euters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 == ================================================== ============ On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wr ote in Message-Id: : B OEING CO. rejected published reports that it might have obtained r ival bidder Airbus SAS's proprietary information while n egotiating a proposed $22.5 billion refueling tanker l ease-purchase agreement with the U.S. Air Force. "Boeing b elieves we did not receive any proprietary information from a ny official on any subject throughout the entire tanker l ease-negotiation process," said Doug Kennett, a spokesman for t he company. Earlier in the day, the Seattle P ost-Intelligencer, citing an unnamed source, reported what it c alled new allegations that a senior Air Force official had " provided Boeing with proprietary information" about Airbus's o ffer to supply its own aircraft and modify them for the r efueling mission. The French-German aerospace firm that c ontrols Airbus said its response to the U.S. Air Force's o riginal request for tanker bids was "proprietary in nature and w as furnished to the Air Force in confidence." ( Reuters 01:31 PM ET 08/29/2003) M o http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 = ================================================== ============= O n Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera w rote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================================================ ================ On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ============================================== ================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ===================================== =========================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ==================================== ============================ On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 =================================== ============================= On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24e : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t8 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh4 : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc3 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================= =================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2lj : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtr : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8 : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================== ====================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@n ews3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mkn ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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#67
May 29th 04, 02:05 PM
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"Larry Dighera" wrote in message ... 218 kb of schlock Welcome to my killfile with the rest of the nuts. Keith
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#68
May 29th 04, 05:18 PM
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Keith Willshaw wrote:
"Larry Dighera" wrote in message 218 kb of schlock Welcome to my killfile with the rest of the nuts. Well, for the first few lines of the post that I quickly scanned, he actually seemed to be a coherent writer (perhaps taking his meds?) and focused on a single topic. I take some points off in that his lines were not right justified, and content was a mere 2700 lines. Considering that much of his post was response to himself, he's got a ways to go to reach J. Wiz whacko content quality. Definitely nutsoid potential though, and neighbors and associates should probably keep the loon mallet close at hand. SMH
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#69
May 30th 04, 07:55 AM
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"Stephen Harding" wrote in message ... Keith Willshaw wrote: "Larry Dighera" wrote in message 218 kb of schlock Welcome to my killfile with the rest of the nuts. Well, for the first few lines of the post that I quickly scanned, he actually seemed to be a coherent writer (perhaps taking his meds?) and focused on a single topic. I take some points off in that his lines were not right justified, and content was a mere 2700 lines. Considering that much of his post was response to himself, he's got a ways to go to reach J. Wiz whacko content quality. Definitely nutsoid potential though, and neighbors and associates should probably keep the loon mallet close at hand. Ah, Larry's not too bad if you ignore this particular subject. I use the following rule for Outlook Express rats, I can't copy the rule to the clip board, oh well Simply put: under "Tools" - "Message Rules" - "News" When the "From line contains: ' and Where the Subject Line contains 'Boeing Boondoggle' Delete it and mark the message ignored."
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#70
June 2nd 04, 03:21 PM
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BOEING CO. said on Monday it was confident it could cling to a multibillion-dollar U.S. Air Force contract for refueling planes even if the Pentagon seeks new bids for the lucrative tanker deal. James Albaugh, president and chief executive of Boeing's Integrated Defense Systems, also said the aircraft manufacturer still expected to boost revenue at its key military and space unit by 10% in 2004 despite pressure on Pentagon spending. He said the military and space division expected to earn $30 billion in revenues this year. The defense division generates around 60% of Boeing's $50.5 billion annual revenue. Some caution Boeing could end up with a smaller deal than it had hoped, possibly involving used aircraft, amid growing concern over rising federal budget deficits. Albaugh said Boeing's military and space unit could achieve annual compound growth of 6% without winning any new major contracts, but remained confident of snaring new orders regardless of who was elected at the upcoming U.S. polls. (Reuters 02:37 AM ET 05/31/2004) Mo http://q1.schwab.com/s/r?l=248&a=966...a&s=rb0405 31 ---------------------------------------------------------------- On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera wrote in Message-Id: : A multibillion-dollar BOEING CO. drive to supply refueling planes to the U.S. Air Force is likely to fly in some form, experts on military purchases say. On Tuesday, the Pentagon put off until at least November a decision on whether to reopen negotiations on a $23.5 billion plan to lease 20 and buy up to another 80 modified tankers based on Boeings' 767 commercial airliner. "I believe that the Air Force is going to rearrange its weapons-purchasing priorities in the future to find money for tanker modernization," said Loren Thompson, director of the Lexington Institute in Arlington, Va. Others cautioned Boeing could end up with a deal smaller than it hoped, possibly involving used aircraft, amid growing concern over rising federal budget deficits. Boeing's chief rival in the business is Airbus parent EADS, which says it is ready to compete if the Pentagon seeks new bids for tankers. But many lawmakers have made clear they would oppose giving a non-U.S. company any such contract. (Reuters 01:40 PM ET 05/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=965...a&s=rb0405 27 ---------------------------------------------------------------- On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force failed to use a true competitive process to choose BOEING CO. over Europe's Airbus for a stalled $20 billion-plus plan to lease and buy refueling aircraft, according to a Pentagon-commissioned report. The analysis by the Industrial College of the Armed Forces, obtained by Reuters on Wednesday, also says the Air Force appeared to have made "only limited use of considerable government buying power and leverage to obtain maximum discounts." The report, which has not been officially released, is one of a series of studies requested by Defense Secretary Donald Rumsfeld to help decide the fate of the Air Force plan to lease 20 modified Boeing 767 tankers and buy 80 more. A Defense Science Board task force has already said there is no compelling reason to rush to replace the existing KC-135 tankers and the Defense Department's inspector general has said the $23.5 billion project, as negotiated by the Air Force, could cost $4.5 billion more than necessary. (Reuters 08:20 PM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 19 ---------------------------------------------------------------- LOCKHEED MARTIN CORP. quietly proposed an all-new aerial refueling tanker in 2002 before the U.S. Air Force instead pursued a now-stalled $23.5 billion deal with BOEING CO. based on the 767 airliner, Lockheed acknowledged. The Pentagon's largest supplier, Lockheed is leaving open the possibility of reviving its pitch if the military calls for a new contest, which could further complicate Boeing's hopes to lease and sell 100 modified 767s. A copy of the previously undisclosed proposal was obtained by Reuters from a source outside the company who declined to be named. Lockheed spokesman Thomas Jurkowsky confirmed it was authentic and said it came from a Lockheed advanced development project office in response to a feeler from the Air Force. (Reuters 02:00 PM ET 05/21/2004) Mo http://q1.schwab.com/s/r?l=248&a=963...a&s=rb0405 21 ---------------------------------------------------------------- BOEING CO. said that its tanker program "is not dead" since its U.S. Air Force customer still wants to go ahead with its plan to lease and buy refueling aircraft from the aircraft maker. "The tanker is not dead," said Boeing CEO Harry Stonecipher in an address to institutional investors in New York. "The customer has not changed their mind one iota about the 767 tanker program." (Reuters 08:34 AM ET 05/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19 ---------------------------------------------------------------- On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it was "very optimistic" about completing a stalled $23.5 billion plan to supply refueling aircraft to the U.S. Air Force despite new doubts about the deal raised by a Pentagon advisory panel. Boeing was buoyed by a measure in the 2005 Defense Authorization bill passed by the House of Representatives Armed Services Committee late Wednesday, earmarking $95 million to speed the lease of 20 tankers and the purchase of 80 more. The bill would require the secretary of the Air Force to enter into a multiyear contract for new Boeing tankers after renegotiating the terms. It would also set up a panel of outside experts to make sure it made sense for taxpayers -- a tacit acknowledgment of Pentagon Inspector General Joseph Schmitz's finding that the current plan might cost $4.5 billion more than necessary. (Reuters 04:26 PM ET 05/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 14 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld likely will stick to a "pause" on a $23.5 billion U.S. Air Force plan to lease and buy BOEING CO. refueling aircraft until completion of a study of whether new aircraft are needed, Michael Wynne, the Pentagon's top weapons buyer said on Thursday. The study, being carried out by the Air Force and known as an analysis of alternatives, could wind up by the end of this year if speeded up, said Wynne. He said he expected Rumsfeld to have taken "on board" a Pentagon advisory panel's conclusions, presented to Congress Wednesday, that the existing fleet's corrosion problems were "manageable," and that there was no need to rush on the Boeing deal. In the summary of its findings presented to Congress on Wednesday, a Defense Science Board task force said there was "no compelling material or financial reason to initiate a replacement program" before studying alternatives and how the military will use the planes. (Reuters 07:03 PM ET 05/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=961...a&s=rb0405 13 ---------------------------------------------------------------- The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ---------------------------------------------------------------- On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force has no pressing need to start phasing out its refueling planes, a Pentagon-commissioned report made available Wednesday said, in a fresh blow to a stalled $23.5 billion BOEING CO. tanker deal. The report by a task force of the Defense Science Board, a Pentagon advisory panel, found "no compelling material or financial reason" to replace the KC-135 tankers until a traditional analysis of alternatives was completed -- a process the Pentagon has said could take up to 18 months. New 767 aircraft may not be required, the task force added, citing the possibility of replacing engines on the old aircraft, converting retired DC-10 aircraft or developing new tankers with more modern airframes. Boeing must decide whether to close the production line within a few months if the deal to lease and sell 100 modified 767s as mid-air tankers stays stalled, a top company executive said Tuesday night. (Reuters 10:53 PM ET 05/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=960...a&s=rb0405 12 ---------------------------------------------------------------- U.S. Sen. John McCain on Tuesday held up more Pentagon nominations and threatened to seek a subpoena for Pentagon documents on a now-suspended $23.5 billion Air Force deal for 100 BOEING CO. 767 tankers if defense officials did not turn over the data soon. McCain, who has led opposition to the tanker lease-buy deal, said he would place a hold on five additional nominations for civilian jobs at the Pentagon over the document issue, bringing the total number of nominations on hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense Department had already provided Congress with documents that it deemed appropriate and that would not inadvertently lead to the release of company proprietary data. A majority of members of the Senate Armed Services Committee voted to approve the nominations of Tina Jonas to replace former Pentagon Comptroller Dov Zakheim and Dionel Aviles as Navy Undersecretary, and three others. (Reuters 07:14 PM ET 05/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11 ----------------------------------------------------------------On Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote in Message-Id: : Two more Pentagon reports have raised questions about a $23.5 billion Air Force plan to lease and buy 100 BOEING CO. 767 refueling tankers, sources familiar with the reports said on Monday, a development that could prompt Defense Secretary Donald Rumsfeld to scuttle the deal. The Defense Science Board, a Pentagon advisory board, and the National Defense University have finished separate reviews on the deal -- reports that Rumsfeld said he needed to see before deciding whether to approve the controversial deal. The sources said defense officials now expect Rumsfeld to scrap the tanker lease and order a formal analysis of alternatives on how to modernize the Air Force's aging fleet of KC-135s -- a review that could take a year to 18 months. (Reuters 07:57 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera wrote in Message-Id: : ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO.'s former chief executive was present when the aerospace giant first tried to hire an Air Force procurement official who oversaw Boeing contracts, according to an Air Force memo, The Wall Street Journal said. The February memo describes job talks between Boeing and Darleen Druyun, saying "the possibility of Druyun's future employment with Boeing" was mentioned "in general terms," during an August 2002 lunch at Boeing's Chicago headquarters attended by then Chairman and CEO Phil Condit, Druyun and former Boeing CFO Michael Sears, the Journal said. The memo was made public last week, the Journal said. Druyun last month pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating a job at Boeing while still at the Air Force overseeing a $20 billion-plus refueling-tanker deal and other Boeing-related contracts. (Reuters 07:54 AM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ---------------------------------------------------------------- Boeing Co (BA) (42.59 -0.81) BOEING CO. will fire 50 contract workers in Wichita, Kan., and reassign some company workers because of delays in a controversial order for 100 U.S. Air Force refueling tankers, according to an internal memo obtained by Reuters. The cuts would come "over the next several days" and will add to the 150 jobs cuts and 600 job transfers announced in February when Boeing, the No. 2 Pentagon contractor, said it was slowing development of the 767-based tankers. A spokesman for Chicago-based Boeing did not immediately return a phone call seeking comment. Boeing last week took out full-page ads in a dozen publications defending the deal, which has been labeled corporate welfare by fiscal watchdog groups and hampered by the discovery that a former Air Force official negotiated a job at Boeing while still overseeing the tanker talks. (Reuters 12:47 PM ET 05/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10 ----------------------------------------------------------------On Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote in Message-Id: : A Pentagon decision on whether to buy 100 midair refueling tankers from BOEING for more than $20 billion may be delayed at least until November, The Wall Street Journal said. In April a former top U.S. Air Force procurement official, Darleen Druyun, pleaded guilty to one conspiracy count for violating a conflict-of-interest law by negotiating an eventual job at Boeing while she was still overseeing talks for the multibillion dollar tanker deal. The Pentagon has put the tanker deal on hold pending reviews, including an examination by the Defense Science Board, with a specific eye to the Air Force's claim that the current fleet of KC-135 tankers is experiencing worse-than-expected corrosion. (Reuters 05:55 AM ET 05/07/2004) Mo http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07 =========================================== ===================== On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. lashed out at news reports questioning its now-suspended deal to sell and lease the U.S. Air Force 100 767 tankers, placing a full-page retort in a dozen publications including The Washington Post and The Wall Street Journal. In the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts Straight," Chief Executive Harry Stonecipher cited media reports "based on draft reports, out-of-context emails and misleading allegations." Stonecipher, who took the helm at Boeing late last year after a growing scandal surrounding the $23.5 billion tanker deal caused former Chief Executive Phil Condit to resign, defended the project and said he was ready to reopen talks with the Air Force as soon as the Pentagon was ready. (Reuters 03:03 PM ET 05/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04 ---------------------------------------------------------------- The chief executive of BOEING CO. said he expects the company's $20-billion-plus plan to lease and sell the U.S. military 100 midair refueling tankers to go through this year because the Air Force still favors it. "The reason I'm confident it will get done is because the customer, still, is very much in favor," Chief Executive Harry Stonecipher said following Boeing's annual shareholders meeting. Stonecipher, a former vice chairman of Boeing, returned to active management last year following the sudden resignation of former CEO Phil Condit. The company's problems in concluding the tanker deal, first announced more than 2 years ago, have intensified in recent months as several reviews take place in various governmental and legal offices. (Reuters 03:12 PM ET 05/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03 ---------------------------------------------------------------- On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force improperly awarded a $1.32 billion NATO surveillance-plane upgrade contract to BOEING CO. that was negotiated by an official who later joined the company, the Pentagon's chief inspector said on Thursday. The deal was negotiated by Darleen Druyun, the Air Force's former No. 2 procurement official who was hired one month later by Boeing, said Inspector General Joseph Schmitz, an internal watchdog. Druyun is scheduled to plead guilty on Tuesday to a felony count of conspiracy in another Boeing-related matter. She has agreed to cooperate with prosecutors investigating a possibly tainted $23.5 billion Air Force plan to lease and buy Boeing 767s as refueling planes. (Reuters 07:55 PM ET 04/15/2004) Mo http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15 ---------------------------------------------------------------- On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera wrote in Message-Id: : A former BOEING CO. official, under investigation for possible conflicts of interest in a $23.5 billion Pentagon air tanker deal, plans to plead guilty to conspiracy next week, court documents showed. The investigation centers on whether the actions of Darleen Druyun, formerly the U.S. Air Force's No. 2 acquisition official, and another former Boeing official tainted an Air Force plan to lease and buy Boeing 767s as refueling planes. Druyun's plea agreement could be a further setback for the Air Force, which says it needs to begin replacing its fleet of KC-135 tankers, which average 40 years in age. The deal is already on hold pending several Pentagon reviews, an investigation by the SEC and an ongoing federal criminal investigation. (Reuters 02:43 PM ET 04/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13 On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera wrote in Message-Id: : A proposed $23.5 billion Air Force deal to lease and buy 100 BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion more than it should, according to a Pentagon Inspector General audit that urged the Pentagon to hold off on the deal until concerns are addressed. Senate aides said the audit put the deal in jeopardy, despite Boeing executive James Albaugh's comment on Tuesday that he thinks the deal to lease 20 tankers and purchase 80 more will "get done this year." The Inspector General's (IG) audit showed the deal would cost taxpayers between $2.5 billion to $4.4 billion more than if the Air Force had followed standard defense procurement rules. It also chided the Air Force for including $1 billion of development costs, although Boeing developed a similar tanker for other nations. (Reuters 07:07 PM ET 04/06/2004) Mo http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06 ---------------------------------------------------------------- On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera wrote in Message-Id: : Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the prospect of legislation to exclude foreign companies from future tanker deals. Dicks, D-Wash., said Airbus Industries should be banned from bidding for future tanker contracts since it receives subsidies from European governments and the U.S. had only one commercial aircraft maker left -- Boeing. Ralph Crosby, chairman and CEO of the North American unit of EADS, the parent company of Airbus, said Airbus received interest-bearing, repayable loans to help finance the launch of new aircraft, but it always repaid those loans. (Reuters 06:41 PM ET 03/30/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30 -------------------------------------------------------------- On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera wrote in Message-Id: : The Pentagon should fix, but not necessarily kill, a stalled $23 billion plan to lease and buy modified BOEING CO. refueling planes, the Defense Department's internal watchdog said. Inspector General Joseph Schmitz, outlining audit results to Congress, said he had found no "compelling reason" to block the acquisition of 100 Boeing 767 aircraft used to refuel warplanes in midair. But procurement laws need to be fulfilled before the program moves forward, Schmitz and his aides told the staff of the Senate Armed Services Committee and others in a briefing. The tanker deal was put on hold last year after Boeing fired two executives over "unethical" contacts during negotiations on the plan, the first involving lease of a major weapon rather than a straight purchase. (Reuters 06:59 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ===================================== =========================== On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera wrote in Message-Id: : Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ==================================== ============================ On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 =============================== ================================= On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================ ==================================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 =========================== ===================================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ========================== ====================================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================= ======================================= On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ======================== ======================================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================= ========================================= On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ==================== ============================================ BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================= =============================================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representative s Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ============== ================================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============= ================================================== = The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============= ================================================== = The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressiona l reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============ ================================================== == On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congression al Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgiving s about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin , that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibil ity. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official . She had been deputy assistant secretary for Air Force acquisitio n and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ========== ================================================== ==== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outrigh t, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committ ee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuter s 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michae l Zettler, deputy chief of staff for installations and logistic s, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a simila r -- and equally contentious -- briefing for Senate professi onal staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controve rsial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committe e is the final of four congressional panels to review the deal. The other three have approved it. (Reute rs 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ======== ================================================== ====== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senat e Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Departm ent proposal. The Pentagon still has "not adequately justifi ed spending what it now acknowledges will be billions of dolla rs more to acquire tankers through a lease," McCain, an Arizo na Republican, said in letters to the armed services panel 's leaders. McCain's new qualms could translate into furth er delays for the tanker deal -- a plan to lease a major weapo ns system for the first time rather than buy it outright. (Reuter s 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======= ================================================== ======= The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billi on deal to lease then buy 100 Boeing 767 tankers, congres sional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusu al move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documen ts provided by Boeing to Senate Commerce Committee Chairma n McCain, an Arizona Republican. But investigators, includi ng an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuter s 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boein g Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authori ty to buy 26 of the tankers before their 6-year leases expir e to pare total program costs by $1.2 billion. Deputy Defen se Secretary Paul Wolfowitz said buying the 26 tankers early , between 2008 and 2010, would add $2.4 billion in initial budge t costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the deliver y schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuter s 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======= ================================================== ======= On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a form al investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircra ft as refueling tankers, a U.S. lawmaker said on Wednes day. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a form al investigation, said Sen. John McCain, an Arizona Republ ican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpay ers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentag on's in-house watchdog has carried out a preliminary inquir y into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reute rs 10:50 PM ET 09/17/2003) More : http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Presid ent George W. Bush backed a controversial Air Force plan to leas e BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and othe r regional newspapers. Senate Armed Services Committee Chairm an John Warner, a Virginia Republican, and Carl Levin of Michig an, the panel's top Democrat, have asked Defense Secret ary Donald Rumsfeld to consider slashing the Air Force propos al to lease and then buy 100 767s for $22.4 billion. The senato rs have suggested leasing no more than 25 767s while gettin g the rest of any needed tankers through standard purcha se procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible refere nce to the up to 25 aircraft that Warner and Levin have sugges ted. (Reute rs 01:34 PM ET 09/17/2003) More : http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ====== ================================================== ======== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrot e in Message-Id: : Sen . John McCain said that BOEING CO. appeared to have improperly slant ed the Pentagon process that led to its troubled $22.4 billi on plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct mig ht have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmi tz, the Defense Department inspector general, to expand an inqui ry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donal d Rumsfeld to provide all records relating to the lease propo sal from both Air Force Secretary James Roche and the Penta gon's acting chief weapons buyer, Michael Wynne. (Reut ers 08:38 PM ET 09/11/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wro te in Message-Id: : Th e U.S. Air Force on Monday said it expected to respond by early ne xt week to a letter from the Senate Armed Services Committee prop osing a scaled-down lease of 25 BOEING CO. 767s tankers. "We' re in the process of preparing our letter," said Air Force spok eswoman Gloria Cales. "We should have our response pulled toge ther later this week or early next week." Cales gave no deta ils, but Air Force acquisitions chief Marvin Sambur last we ek said it would be "significantly more expensive" to lease fewe r airplanes, due to lost volume discounts and the impact of infl ation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reu ters 06:17 PM ET 09/08/2003) More : http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrot e in Message-Id: : Sen . John McCain, who has criticized the cost of a U.S. Air Force pro posal to lease BOEING CO. 767s as refueling tankers, said on Fri day he would press Air Force Secretary James Roche and other t op Pentagon officials to hand over all records on the deal. "We 'll be asking for as much information as we can get," McCain sai d in a telephone interview, 1 day after the Senate Armed Ser vices Committee on which he serves delayed an expected vote o n a $22.4 billion lease-to-buy plan. (Re uters 04:23 PM ET 09/05/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 === ================================================== =========== O n Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wro te in Message-Id: : Th e Pentagon's Inspector General announced a formal investigation in to whether an Air Force official improperly shared data with BO EING CO., raising new questions about a $22.4 billion Air Fo rce deal to lease, then buy 100 767 tankers. Sen. John McCain ci ted the investigation and once again blasted the proposed le ase deal at a Senate Commerce Committee hearing, while Alaska Re publican Sen. Ted Stevens underscored what he called the ur gency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said do cuments provided by Chicago-based Boeing, the Air Force and th e Pentagon which prompted the investigation showed an "e xtremely aggressive sales pitch" for the deal. (R euters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Da rleen Druyun, a former Air Force official, offered as early as Oc tober 2001 to meet with investors to stress the low risk of a de al for the Air Force to lease Boeing tankers, a BOEING CO. me morandum shows. The Pentagon's Inspector General on Wednesday la unched a formal investigation into whether the Air Force sh ared proprietary data with Boeing, an inquiry defense of ficials said was focused on Druyun, who joined Boeing in Ja nuary 2003 after retiring from the Air Force in November 20 02. Boeing denies it received any proprietary data during the ne gotiations, and Druyun had declined interview requests. The co mpany insists Druyun has not been involved in the lease ne gotiations since joining the company, adhering firmly to fe deral rules for former defense officials. Pentagon in vestigators will try to determine if Druyun overstepped her bo unds in those discussions, but congressional sources said it wa s clear from a series of emails provided to lawmakers by Bo eing that she played a key role early in the Air Force's ne gotiations with Boeing. (R euters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Se nate Armed Services Committee Chairman John Warner said his pa nel would not rush to a vote on a controversial Air Force pl an to lease 100 BOEING CO. 767 refueling tankers, which has be en dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this is sue," the Virginia Republican said at the opening of a he aring into the $22.4 billion Air Force proposal to lease and th en buy 100 aerial tankers. Warner said members of his panel wo uld hold discussions in a closed hearing after taking te stimony from witnesses before he would schedule a vote. (R euters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- Th e U.S. Senate Armed Services Committee has asked Defense Se cretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling ta nkers, officials said. The committee will postpone a vote on th e Air Force's plan until it gets a Pentagon analysis, the of ficials said. (R euters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wr ote in Message-Id: : D ozens of email exchanges among BOEING CO., the Air Force and the P entagon released on Saturday raised fresh questions about a c ontroversial $22.5 billion deal to lease, then buy 100 Boeing 7 67 tankers. The documents were among more than 8,000 provided t o the Senate Commerce Committee as it investigated a deal its c hairman, Sen. John McCain describes as a "military-industrial r ip-off" and a government bailout of Boeing, whose commercial a ircraft sales slumped after the September 2001 hijack attacks. T he documents contain no "smoking guns," congressional sources s ay, but they show a close relationship between Boeing and Air F orce officials, including Air Force Secretary James Roche, as w ell as details of a rival bid by Airbus SA. ( Reuters 05:11 PM ET 08/30/2003) M o http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- C ritics of a $22.4 billion Air Force proposal to lease, then buy, 1 00 Boeing 767s as refueling tankers plan to raise financing and c ost concerns at a Senate hearing on Wednesday in a final bid to b lock the deal. Defense analysts predict tough questions in the S enate Commerce Committee and other hearings this week, but say t he need to replace the Air Force's KC-135 tankers, which are on a verage 43 years old, will ultimately win the votes needed for a pproval. Arizona Republican Sen. John McCain, chairman of the C ommerce Committee, blasts the deal as a government bailout of B OEING CO., whose commercial aircraft sales slumped after the S eptember 2001 hijack attacks. The Congressional Budget Office, t he General Accounting Office and several government watchdog g roups are also skeptical of the deal, which has already won n eeded approval from three of four congressional committees. ( Reuters 05:06 PM ET 09/02/2003) M o http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 = ================================================== ============= O n Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera w rote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================================================== ============== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 =============================================== ================= On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ============================================= =================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ==================================== ============================ On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 =================================== ============================= On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ================================== ============================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit24 : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0460t : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusalh : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrjlc : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================ ==================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje2l : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagt : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================= ======================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7a : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921471@ news3.news.adelphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mk ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
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