|
| If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. |
|
|||||||
|
|
Thread Tools | Display Modes |
|
#71
June 7th 04, 07:10 AM
|
|||
|
|||
The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 Representativ es 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 Committe e 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 Congressio nal Budget Office, General Accounting Office, Institut e 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 -- identica l to a Senate appropriations measure -- highlighted misgivin gs 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 Wisconsi n, 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 responsibi lity. (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 attorne y while still working for the Air Force as a procurement officia l. She had been deputy assistant secretary for Air Force acquisiti on and management. The group also said Druyun's daughte r and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuter s 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. (Reute rs 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. Micha el Zettler, deputy chief of staff for installations and logisti cs, 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 simil ar -- and equally contentious -- briefing for Senate profess ional 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 controv ersial 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: : Sena te Armed Services Committee member John McCain, who helped stal l a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Depart ment proposal. The Pentagon still has "not adequately justif ied 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) More : 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, congre ssional 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 leas e 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 docume nts provided by Boeing to Senate Commerce Committee Chairm an McCain, an Arizona Republican. But investigators, includ ing 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) More : http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boei ng 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 author ity to buy 26 of the tankers before their 6-year leases expi re to pare total program costs by $1.2 billion. Deputy Defens e Secretary Paul Wolfowitz said buying the 26 tankers earl y, between 2008 and 2010, would add $2.4 billion in initial budg et 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 Arme d Services Committee, the last of four congressional panels that must vote on the lease deal. (Reute rs 02:53 PM ET 09/23/2003) More : 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 wrot e 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 aircr aft as refueling tankers, a U.S. lawmaker said on Wedne sday. The inspector general, Joseph Schmitz, has concluded tha t "sufficient credible information exists to warrant" a forma l investigation, said Sen. John McCain, an Arizona Repub lican who has denounced the lease proposal as a sweetheart dea l for Boeing. "Up to now, it appears that the interests of taxpa yers have been subordinated to those of Boeing," McCain sai d in disclosing the upgraded probe. In recent weeks, the Penta gon's in-house watchdog has carried out a preliminary inqui ry into, among other things, whether an Air Force official gav e Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reut ers 10:50 PM ET 09/17/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Presi dent George W. Bush backed a controversial Air Force plan to lea se BOEING 767 aircraft as refueling tankers despite criticism fro m Congress, according to an interview. "I do support it," he sai d in an interview with the Seattle Post-Intelligencer and oth er regional newspapers. Senate Armed Services Committee Chair man John Warner, a Virginia Republican, and Carl Levin of Michi gan, the panel's top Democrat, have asked Defense Secre tary Donald Rumsfeld to consider slashing the Air Force propo sal to lease and then buy 100 767s for $22.4 billion. The senat ors have suggested leasing no more than 25 767s while getti ng the rest of any needed tankers through standard purch ase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible refer ence to the up to 25 aircraft that Warner and Levin have sugge sted. (Reut ers 01:34 PM ET 09/17/2003) Mor e: 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 wro te in Message-Id: : Se n. John McCain said that BOEING CO. appeared to have improperly slan ted the Pentagon process that led to its troubled $22.4 bill ion plan to lease then sell modified refueling tankers to th e 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 Schm itz, the Defense Department inspector general, to expand an inqu iry 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 prop osal from both Air Force Secretary James Roche and the Pent agon's acting chief weapons buyer, Michael Wynne. (Reu ters 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: : T he 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 pro posing a scaled-down lease of 25 BOEING CO. 767s tankers. "We 're in the process of preparing our letter," said Air Force spo keswoman Gloria Cales. "We should have our response pulled tog ether later this week or early next week." Cales gave no det ails, 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 inf lation. Once the Air Force completed its response, it would g o to Defense Secretary Donald Rumsfeld for approval, she said. (Re uters 06:17 PM ET 09/08/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- O n 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 pr oposal to lease BOEING CO. 767s as refueling tankers, said on Fr iday he would press Air Force Secretary James Roche and other to p Pentagon officials to hand over all records on the deal. "W e'll be asking for as much information as we can get," McCain sa id in a telephone interview, 1 day after the Senate Armed Se rvices Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (R euters 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 wr ote in Message-Id: : T he Pentagon's Inspector General announced a formal investigation i nto whether an Air Force official improperly shared data with B OEING CO., raising new questions about a $22.4 billion Air F orce deal to lease, then buy 100 767 tankers. Sen. John McCain c ited the investigation and once again blasted the proposed l ease deal at a Senate Commerce Committee hearing, while Alaska R epublican Sen. Ted Stevens underscored what he called the u rgency of quickly replacing the Air Force's aging fleet of K C-135 tankers due to increased wartime use. McCain said d ocuments provided by Chicago-based Boeing, the Air Force and t he Pentagon which prompted the investigation showed an " extremely aggressive sales pitch" for the deal. ( Reuters 04:11 PM ET 09/03/2003) M o http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- D arleen Druyun, a former Air Force official, offered as early as O ctober 2001 to meet with investors to stress the low risk of a d eal for the Air Force to lease Boeing tankers, a BOEING CO. m emorandum shows. The Pentagon's Inspector General on Wednesday l aunched a formal investigation into whether the Air Force s hared proprietary data with Boeing, an inquiry defense o fficials said was focused on Druyun, who joined Boeing in J anuary 2003 after retiring from the Air Force in November 2 002. Boeing denies it received any proprietary data during the n egotiations, and Druyun had declined interview requests. The c ompany insists Druyun has not been involved in the lease n egotiations since joining the company, adhering firmly to f ederal rules for former defense officials. Pentagon i nvestigators will try to determine if Druyun overstepped her b ounds in those discussions, but congressional sources said it w as clear from a series of emails provided to lawmakers by B oeing that she played a key role early in the Air Force's n egotiations with Boeing. ( Reuters 08:12 PM ET 09/03/2003) M o http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- S enate Armed Services Committee Chairman John Warner said his p anel would not rush to a vote on a controversial Air Force p lan to lease 100 BOEING CO. 767 refueling tankers, which has b een dogged by questions about its cost and propriety. "We owe a n obligation to the taxpayers to very carefully assess this i ssue," the Virginia Republican said at the opening of a h earing into the $22.4 billion Air Force proposal to lease and t hen buy 100 aerial tankers. Warner said members of his panel w ould hold discussions in a closed hearing after taking t estimony from witnesses before he would schedule a vote. ( Reuters 10:26 AM ET 09/04/2003) M o 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 S ecretary Donald Rumsfeld to look at leasing just one quarter o f the 100 BOEING CO. 767s sought by the Air Force as refueling t ankers, officials said. The committee will postpone a vote on t he Air Force's plan until it gets a Pentagon analysis, the o fficials said. ( Reuters 05:05 PM ET 09/04/2003) M o 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 w rote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7esh3fkit2 : 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 4n8e4v8av75ot2gflip94v7os0460 : 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 d7d92v8q5sdkupes0o5fovvhusal : 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 ifpdtuovlha5l2fbpreojtfbrjl : 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 dvissu4135etdu8toc2l6hrje2 : 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 i4disug2gpmufjvj7kk9u4iag : 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 d5panukhiq14qdrpfaelragt : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ======================== ======================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7 : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" t (W. D. Allen) wrote in Message ID EMCZ8.6962$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:8j8cjug531sd2e94m ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, 
|
|
#72
June 17th 04, 01:21 AM
|
|||
|
|||
|
France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 responsibilit y 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: : Congressiona l 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 negotiation s 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 maintenanc e 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 Departmen t, 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 committee s 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 congressio nal 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 oversigh t 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 taxpayer s 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 Committ ee 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 Congressi onal Budget Office, General Accounting Office, Institu te for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraf t initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuter s 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 -- identic al 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 responsib ility. (Reuter s 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 attorn ey while still working for the Air Force as a procurement official . She had been deputy assistant secretary for Air Force acquisit ion and management. The group also said Druyun's daught er and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reute rs 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 doubt s on Wednesday about a fresh Pentagon push to acquire BOEIN G CO. 767 aircraft as midair refueling tankers through a lease . The research service said the Defense Department's lates t 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 aide s. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michae l Zettler, deputy chief of staff for installations and logist ics, 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 profes sional 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 contro versial lease deal this week, putting off any action unti l at least mid-October, after a one-week recess. The commit tee 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) More : 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 wrot e in Message-Id: : Senat e Armed Services Committee member John McCain, who helped sta ll a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Depar tment proposal. The Pentagon still has "not adequately justi fied 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. (Reut ers 04:53 PM ET 09/25/2003) Mor e: 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, congr essional and administration sources said on Monday. They sai d Inspector General Joseph Schmitz is considering the unusu al move as he investigates possible impropriety in the lea se proposal that critics including U.S. Sen. John McCain hav e blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on docum ents provided by Boeing to Senate Commerce Committee Chair man McCain, an Arizona Republican. But investigators, inclu ding an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reut ers 05:40 PM ET 09/22/2003) Mor e: 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 dea l to lease, then buy, 100 BOEING CO. 767 tankers, seeking autho rity 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 cos t of the program, the additional funds needed ... and the deliv ery schedule for the new capability," he told the Senate Arm ed Services Committee, the last of four congressional panels tha t must vote on the lease deal. (Reut ers 02:53 PM ET 09/23/2003) Mor e: 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 wro te in Message-Id: : Th e Pentagon's inspector general has told Congress he plans a form al investigation of possible impropriety involving the U.S. Ai r Force's $22.4 billion proposal to lease then buy BOEING 767 airc raft as refueling tankers, a U.S. lawmaker said on Wedn esday. The inspector general, Joseph Schmitz, has concluded th at "sufficient credible information exists to warrant" a form al investigation, said Sen. John McCain, an Arizona Repu blican who has denounced the lease proposal as a sweetheart de al for Boeing. "Up to now, it appears that the interests of taxp ayers have been subordinated to those of Boeing," McCain sa id in disclosing the upgraded probe. In recent weeks, the Pent agon's in-house watchdog has carried out a preliminary inqu iry into, among other things, whether an Air Force official ga ve Boeing proprietary pricing data from Airbus, a rival for th e deal, Congressional staffmembers said. (Reu ters 10:50 PM ET 09/17/2003) More : http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Pres ident George W. Bush backed a controversial Air Force plan to leas e BOEING 767 aircraft as refueling tankers despite criticism fr om Congress, according to an interview. "I do support it," he sa id in an interview with the Seattle Post-Intelligencer and othe r regional newspapers. Senate Armed Services Committee Chai rman John Warner, a Virginia Republican, and Carl Levin of Mich igan, the panel's top Democrat, have asked Defense Secr etary Donald Rumsfeld to consider slashing the Air Force prop osal to lease and then buy 100 767s for $22.4 billion. The sena tors have suggested leasing no more than 25 767s while gett ing the rest of any needed tankers through standard purc hase procedures. Air Force Secretary James Roche said the Ai r Force was still working on a lease-to-own deal, a possible refe rence to the up to 25 aircraft that Warner and Levin have sugg ested. (Reu ters 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 sla nted the Pentagon process that led to its troubled $22.4 bil lion plan to lease then sell modified refueling tankers to t he Air Force. "To the extent that Boeing did so, its conduct mig ht have constituted an organizational conflict of interest o r anti-competitive behavior," he said in pressing Joseph Sch mitz, the Defense Department inspector general, to expand an inq uiry into the matter. In a separate letter, McCain, a member o f the Armed Services Committee, called on Defense Secretary Don ald Rumsfeld to provide all records relating to the lease pro posal from both Air Force Secretary James Roche and the Pen tagon's acting chief weapons buyer, Michael Wynne. (Re uters 08:38 PM ET 09/11/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- O n 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 pr oposing a scaled-down lease of 25 BOEING CO. 767s tankers. "W e're in the process of preparing our letter," said Air Force sp okeswoman Gloria Cales. "We should have our response pulled to gether later this week or early next week." Cales gave no de tails, but Air Force acquisitions chief Marvin Sambur last we ek said it would be "significantly more expensive" to lease fe wer airplanes, due to lost volume discounts and the impact of in flation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (R euters 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 wr ote in Message-Id: : S en. John McCain, who has criticized the cost of a U.S. Air Force p roposal to lease BOEING CO. 767s as refueling tankers, said on F riday 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 s aid in a telephone interview, 1 day after the Senate Armed S ervices Committee on which he serves delayed an expected vote o n a $22.4 billion lease-to-buy plan. ( Reuters 04:23 PM ET 09/05/2003) M o 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 w rote 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7esh3fkit : 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 4n8e4v8av75ot2gflip94v7os046 : 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 d7d92v8q5sdkupes0o5fovvhusa : 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 ifpdtuovlha5l2fbpreojtfbrj : 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 dvissu4135etdu8toc2l6hrje : 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 i4disug2gpmufjvj7kk9u4ia : 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 d5panukhiq14qdrpfaelrag : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ======================= ========================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.392147 : 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:8j8cjug531sd2e94 ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#73
July 18th 04, 03:27 AM
|
|||
|
|||
|
The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 congressiona l 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 responsibili ty 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: : Congression al 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 Representativ es 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 negotiatio ns 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 acceptanc e 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 maintenan ce 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 jetliner s to the Air Force as refueling planes, congressional official s 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 Committe e, 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 Wednesda y, 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 Committe e 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 committe es 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 congressi onal 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 origina l 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 oversig ht 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 taxpaye rs could reap $6.7 billion in savings with an outright purchas e, which is standard procurement procedure for arms systems . (Reuter s 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 Committe e 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 report s 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 Congress ional Budget Office, General Accounting Office, Institut e for Defense Analyses and Congressional Research Servic e have shown that acquiring the 100 modified Boeing 767 aircra ft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reute rs 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 -- identica l to a Senate appropriations measure -- highlighted misgivin gs 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 Wisconsi n, 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 responsi bility. (Reute rs 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 dolla r 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 attorne y while still working for the Air Force as a procurement officia l. She had been deputy assistant secretary for Air Force acquisi tion and management. The group also said Druyun's daughte r and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuter s 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 doub ts on Wednesday about a fresh Pentagon push to acquire BOEI NG CO. 767 aircraft as midair refueling tankers through a leas e. The research service said the Defense Department's late st proposal bolstered the case for purchasing the aircraft outrig ht, rather than leasing them first in a deal valued at $22. 4 billion. Earlier this month the Senate Armed Services Commit tee put off what was to have been a final vote on the leas e 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. (Reute rs 07:46 PM ET 10/01/2003) More : 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 wrot e in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart dea l for BOEING CO. in the face of tough questions from Senate aides . Air Force acquisitions chief Marvin Sambur and Lt. Gen. Micha el Zettler, deputy chief of staff for installations and logis tics, 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 simil ar -- and equally contentious -- briefing for Senate profe ssional staffers on Friday, aides said. Despite the las t-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the contr oversial lease deal this week, putting off any action unt il at least mid-October, after a one-week recess. The commi ttee is the final of four congressional panels to review the deal. The other three have approved it. (Reut ers 08:08 PM ET 09/29/2003) Mor e: 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 wro te in Message-Id: : Sena te Armed Services Committee member John McCain, who helped stal l a $22.4 billion Air Force plan to lease then buy BOEING CO . tankers, rejected as "non-responsive" a modified Defense Depa rtment proposal. The Pentagon still has "not adequately just ified spending what it now acknowledges will be billions of doll ars more to acquire tankers through a lease," McCain, an Ariz ona Republican, said in letters to the armed services pane l's leaders. McCain's new qualms could translate into furt her delays for the tanker deal -- a plan to lease a major weap ons system for the first time rather than buy it outright. (Reu ters 04:53 PM ET 09/25/2003) More : http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ==== ================================================== ========== Th e 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 bill ion deal to lease then buy 100 Boeing 767 tankers, cong ressional and administration sources said on Monday. They sa id Inspector General Joseph Schmitz is considering the unus ual move as he investigates possible impropriety in the leas e proposal that critics including U.S. Sen. John McCain ha ve blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on docu ments provided by Boeing to Senate Commerce Committee Chai rman McCain, an Arizona Republican. But investigators, incl uding an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reu ters 05:40 PM ET 09/22/2003) More : http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boei ng Co (BA) (35.15 +0.26) Th e Pentagon urged senators to approve a modified $22.4 billion de al to lease, then buy, 100 BOEING CO. 767 tankers, seeking auth ority to buy 26 of the tankers before their 6-year leases expi re to pare total program costs by $1.2 billion. Deputy Defe nse Secretary Paul Wolfowitz said buying the 26 tankers earl y, between 2008 and 2010, would add $2.4 billion in initial budg et costs while lowering total program costs and allowing the Ai r Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total co st of the program, the additional funds needed ... and the deli very schedule for the new capability," he told the Senate Arme d Services Committee, the last of four congressional panels th at must vote on the lease deal. (Reu ters 02:53 PM ET 09/23/2003) More : 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 wrot e in Message-Id: : T he Pentagon's inspector general has told Congress he plans a for mal investigation of possible impropriety involving the U.S. A ir Force's $22.4 billion proposal to lease then buy BOEING 767 air craft as refueling tankers, a U.S. lawmaker said on Wed nesday. The inspector general, Joseph Schmitz, has concluded tha t "sufficient credible information exists to warrant" a for mal investigation, said Sen. John McCain, an Arizona Rep ublican who has denounced the lease proposal as a sweetheart dea l for Boeing. "Up to now, it appears that the interests of tax payers have been subordinated to those of Boeing," McCain sai d in disclosing the upgraded probe. In recent weeks, the Pen tagon's in-house watchdog has carried out a preliminary inq uiry into, among other things, whether an Air Force official gav e Boeing proprietary pricing data from Airbus, a rival for t he deal, Congressional staffmembers said. (Re uters 10:50 PM ET 09/17/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Pre sident George W. Bush backed a controversial Air Force plan to lea se BOEING 767 aircraft as refueling tankers despite criticism fro m Congress, according to an interview. "I do support it," he sai d in an interview with the Seattle Post-Intelligencer and oth er regional newspapers. Senate Armed Services Committee Cha irman John Warner, a Virginia Republican, and Carl Levin of Mic higan, the panel's top Democrat, have asked Defense Sec retary Donald Rumsfeld to consider slashing the Air Force pro posal to lease and then buy 100 767s for $22.4 billion. The sen ators have suggested leasing no more than 25 767s while get ting the rest of any needed tankers through standard pur chase procedures. Air Force Secretary James Roche said the A ir Force was still working on a lease-to-own deal, a possible ref erence to the up to 25 aircraft that Warner and Levin have sug gested. (Re uters 01:34 PM ET 09/17/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 === ================================================== =========== O n Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wro te in Message-Id: : Se n. John McCain said that BOEING CO. appeared to have improperly sl anted the Pentagon process that led to its troubled $22.4 bi llion plan to lease then sell modified refueling tankers to th e Air Force. "To the extent that Boeing did so, its conduct mi ght have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Sc hmitz, the Defense Department inspector general, to expand an in quiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Do nald Rumsfeld to provide all records relating to the lease pr oposal from both Air Force Secretary James Roche and the Pe ntagon's acting chief weapons buyer, Michael Wynne. (R euters 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 wr ote in Message-Id: : T he U.S. Air Force on Monday said it expected to respond by early n ext week to a letter from the Senate Armed Services Committee p roposing a scaled-down lease of 25 BOEING CO. 767s tankers. " We're in the process of preparing our letter," said Air Force s pokeswoman Gloria Cales. "We should have our response pulled t ogether later this week or early next week." Cales gave no d etails, but Air Force acquisitions chief Marvin Sambur last w eek said it would be "significantly more expensive" to lease f ewer airplanes, due to lost volume discounts and the impact of i nflation. Once the Air Force completed its response, it would g o to Defense Secretary Donald Rumsfeld for approval, she said. ( Reuters 06:17 PM ET 09/08/2003) M o http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- O n Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera w rote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7esh3fki : 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 4n8e4v8av75ot2gflip94v7os04 : 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 d7d92v8q5sdkupes0o5fovvhus : 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 ifpdtuovlha5l2fbpreojtfbr : 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 dvissu4135etdu8toc2l6hrj : 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 i4disug2gpmufjvj7kk9u4i : 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 d5panukhiq14qdrpfaelra : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ====================== ========================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3 : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" t (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.39214 : 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:8j8cjug531sd2e9 ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#74
July 20th 04, 01:56 AM
|
|||
|
|||
|
A decision on a potential shutdown of Boeing 767 jet production will probably need to be made by next spring, the president of BOEING CO.'s commercial plane division said. "We have around 24 767s in our backlog ... so we probably need to make a decision in the spring of next year about what we do with the 767 line," said Boeing Commercial Airplanes President Alan Mulally. "Clearly the plan is to replace the 767 line with the 7E7." Mulally said the U.S. Air Force would be working through various evaluations of a proposed U.S. air refueling tanker in the meantime. The company still hopes it will meet the requirements of the program, he said. U.S. Defense Secretary Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to sell and lease the Air Force an initial 100 tankers based on the 767 commercial platform. (Reuters 07:20 AM ET 07/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19 ---------------------------------------------------------------- On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera wrote: The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 multibillio n-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 congression al 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 responsibilit y 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: : Congressiona l 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 Representati ves 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 independen t 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 negotiation s 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 acceptan ce 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 companie s routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenanc e 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 jetline rs to the Air Force as refueling planes, congressional officia ls and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfel d 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 instanc e on the situation in post-war Iraq. But it also reflect s perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Departmen t, and the panel's second-ranking Republican, John McCain of Arizona. (Reuter s 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 Commerc e 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 pinchin g other combat priorities. McCain has denounced the propose d 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. (Reuter s 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 Committ ee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virgini a Republican Sen. John Warner, is the last of four committee s 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. (Reuter s 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 congress ional 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 origin al 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 oversigh t panels that has yet to approve the deal, designed to acquir e 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 taxpayer s could reap $6.7 billion in savings with an outright purchase , which is standard procurement procedure for arms system s. (Reute rs 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 Committ ee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citin g studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many repor ts and studies that have emerged since our hearings on the issue ," Rep. Ike Skelton of Missouri wrote panel chairman Dunca n Hunter, R-Calif., on Wednesday. Studies by the Congres sional Budget Office, General Accounting Office, Institu te for Defense Analyses and Congressional Research Servi ce have shown that acquiring the 100 modified Boeing 767 aircraf t initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuter s 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 BOEIN G CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identic al to a Senate appropriations measure -- highlighted misgivi ngs about the deal among what appeared to be a growing numbe r of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wiscons in, that would have earmarked $14 billion to start buyin g 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 respons ibility. (Reuter s 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 doll ar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit grou p opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorn ey while still working for the Air Force as a procurement offici al. She had been deputy assistant secretary for Air Force acquis ition and management. The group also said Druyun's daught er and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reute rs 03:18 PM ET 10/07/2003) More : 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 wrot e in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubt s on Wednesday about a fresh Pentagon push to acquire BOEIN G CO. 767 aircraft as midair refueling tankers through a lease . The research service said the Defense Department's lates t proposal bolstered the case for purchasing the aircraft outri ght, rather than leasing them first in a deal valued at $22 .4 billion. Earlier this month the Senate Armed Services Commi ttee put off what was to have been a final vote on the lea se 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, dow n from the 100 sought by the Air Force. (Reut ers 07:46 PM ET 10/01/2003) Mor e: 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 wro te in Message-Id: : Ai r Force officials on Monday staunchly defended a $22.4 billion ai r tanker lease agreement some critics say is a sweetheart de al for BOEING CO. in the face of tough questions from Senate aide s. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Mich ael Zettler, deputy chief of staff for installations and logi stics, met with military legislative aides hoping to pave th e way for approval by the Senate Armed Services Committee of th e plan to lease then buy 100 Boeing 767 tankers. They held a simi lar -- and equally contentious -- briefing for Senate prof essional staffers on Friday, aides said. Despite the la st-minute push by the Air Force, Senate aides said they did no t expect the Senate Armed Services Committee to vote on the cont roversial lease deal this week, putting off any action unti l at least mid-October, after a one-week recess. The comm ittee is the final of four congressional panels to review th e deal. The other three have approved it. (Reu ters 08:08 PM ET 09/29/2003) More : 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 wrot e in Message-Id: : Sen ate Armed Services Committee member John McCain, who helped sta ll a $22.4 billion Air Force plan to lease then buy BOEING C O. tankers, rejected as "non-responsive" a modified Defense Dep artment proposal. The Pentagon still has "not adequately jus tified spending what it now acknowledges will be billions of dol lars more to acquire tankers through a lease," McCain, an Ari zona Republican, said in letters to the armed services pan el's leaders. McCain's new qualms could translate into fur ther delays for the tanker deal -- a plan to lease a major wea pons system for the first time rather than buy it outright. (Re uters 04:53 PM ET 09/25/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 === ================================================== =========== T he Pentagon's inspector general may issue a subpoena to BOEING C O. and the U.S. Air Force for all written materials on a $22.4 bil lion deal to lease then buy 100 Boeing 767 tankers, con gressional and administration sources said on Monday. They sai d Inspector General Joseph Schmitz is considering the unu sual move as he investigates possible impropriety in the lea se proposal that critics including U.S. Sen. John McCain hav e blasted as a sweetheart deal for Boeing. The Pentagon's i n-house watchdog agency kicked off its investigation based on doc uments provided by Boeing to Senate Commerce Committee Cha irman McCain, an Arizona Republican. But investigators, inc luding an FBI agent, want to see a complete and full record o f documents related to the case, the sources said. (Re uters 05:40 PM ET 09/22/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boe ing Co (BA) (35.15 +0.26) T he Pentagon urged senators to approve a modified $22.4 billion dea l to lease, then buy, 100 BOEING CO. 767 tankers, seeking aut hority to buy 26 of the tankers before their 6-year leases exp ire to pare total program costs by $1.2 billion. Deputy Def ense Secretary Paul Wolfowitz said buying the 26 tankers ear ly, between 2008 and 2010, would add $2.4 billion in initial bud get costs while lowering total program costs and allowing the A ir Force to immediately begin modernizing its 43-year-old fleet o f KC-135 tankers. "The optimum approach must balance the total cos t of the program, the additional funds needed ... and the del ivery schedule for the new capability," he told the Senate Arm ed Services Committee, the last of four congressional panels tha t must vote on the lease deal. (Re uters 02:53 PM ET 09/23/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 === ================================================== =========== O n Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wro te in Message-Id: : Th e Pentagon's inspector general has told Congress he plans a fo rmal investigation of possible impropriety involving the U.S. Ai r Force's $22.4 billion proposal to lease then buy BOEING 767 ai rcraft as refueling tankers, a U.S. lawmaker said on We dnesday. The inspector general, Joseph Schmitz, has concluded th at "sufficient credible information exists to warrant" a fo rmal investigation, said Sen. John McCain, an Arizona Re publican who has denounced the lease proposal as a sweetheart de al for Boeing. "Up to now, it appears that the interests of ta xpayers have been subordinated to those of Boeing," McCain sa id in disclosing the upgraded probe. In recent weeks, the Pe ntagon's in-house watchdog has carried out a preliminary in quiry into, among other things, whether an Air Force official ga ve Boeing proprietary pricing data from Airbus, a rival for th e deal, Congressional staffmembers said. (R euters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- Pr esident George W. Bush backed a controversial Air Force plan to le ase BOEING 767 aircraft as refueling tankers despite criticism fr om Congress, according to an interview. "I do support it," he sa id in an interview with the Seattle Post-Intelligencer and ot her regional newspapers. Senate Armed Services Committee Ch airman John Warner, a Virginia Republican, and Carl Levin of Mi chigan, the panel's top Democrat, have asked Defense Se cretary Donald Rumsfeld to consider slashing the Air Force pr oposal to lease and then buy 100 767s for $22.4 billion. The se nators have suggested leasing no more than 25 767s while ge tting the rest of any needed tankers through standard pu rchase procedures. Air Force Secretary James Roche said the Ai r Force was still working on a lease-to-own deal, a possible re ference to the up to 25 aircraft that Warner and Levin have su ggested. (R euters 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 wr ote in Message-Id: : S en. John McCain said that BOEING CO. appeared to have improperly s lanted the Pentagon process that led to its troubled $22.4 b illion plan to lease then sell modified refueling tankers to t he Air Force. "To the extent that Boeing did so, its conduct m ight have constituted an organizational conflict of interest o r anti-competitive behavior," he said in pressing Joseph S chmitz, the Defense Department inspector general, to expand an i nquiry into the matter. In a separate letter, McCain, a member o f the Armed Services Committee, called on Defense Secretary D onald Rumsfeld to provide all records relating to the lease p roposal from both Air Force Secretary James Roche and the P entagon's acting chief weapons buyer, Michael Wynne. ( Reuters 08:38 PM ET 09/11/2003) M o http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- O n Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera w rote 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 proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman 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 inflation. 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 proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7esh3fk : 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 4n8e4v8av75ot2gflip94v7os0 : 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 d7d92v8q5sdkupes0o5fovvhu : 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 ifpdtuovlha5l2fbpreojtfb : 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 dvissu4135etdu8toc2l6hr : 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 i4disug2gpmufjvj7kk9u4 : 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 d5panukhiq14qdrpfaelr : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ===================== =========================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" et (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921 : 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:8j8cjug531sd2e ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#75
August 12th 04, 07:35 AM
|
|||
|
|||
|
Federal prosecutors have canceled an Aug. 11 hearing at which former BOEING CO. CFO Michael Sears planned to plead guilty to aiding and abetting the hiring of a former Air Force official while she was overseeing a huge Boeing contract. Sam Dibbley, spokeswoman for U.S. attorney Paul McNulty, said the hearing was removed from the docket of the U.S. District Court in Alexandria, Va., but declined to explain the decision by prosecutors. A source familiar with the case said he believed Sears' plea agreement with the government was still intact. Dibbley said a sentencing hearing for Darleen Druyun, the former Air Force official who pleaded guilty to one felony count of conspiracy in April, remained scheduled for Sept. 3. Jamie Wareham, an attorney for Michael Sears, declined comment on the case. (Reuters 11:58 AM ET 08/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=991...a&s=rb0408 10 ---------------------------------------------------------------- On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera wrote in :: The sentencing of a former U.S. Air Force official who admitted illegally negotiating a job with BOEING CO. while overseeing its contracts has been postponed until Sept. 3, court papers showed on Wednesday. Darleen Druyun, the former No. 2 Air Force acquisitions official, pleaded guilty in April to conspiracy for discussing the job with Boeing before she disqualified herself from overseeing the company's dealings with the Air Force, including a multibillion dollar deal to lease 100 767 refueling tankers. Papers filed with the U.S. District Court in Alexandria, Va., showed Druyun's sentencing had been rescheduled. A source familiar with the case said the sentencing was delayed until after Aug. 11 when former Boeing CFO Michael Sears is due to enter a plea to a criminal charge related to the job discussions. Sears plans to plead guilty to one charge of aiding and abetting Druyun's hiring, another source said on condition of anonymity. Druyun and Sears both face a maximum fine of $250,000 and five years in prison, although federal sentencing guidelines will likely limit the fines and jail terms in both cases. (Reuters 03:27 PM ET 07/28/2004) Mo http://q1.schwab.com/s/r?l=248&a=986...a&s=rb0407 28 ---------------------------------------------------------------- Former BOEING CO. CFO Michael Sears will enter a guilty plea to a criminal charge at a hearing in federal district court on Aug. 11, a source familiar with the case said on Tuesday. The source said Sears plans to plead guilty to one charge of aiding and abetting the hiring of former Air Force official Darleen Druyun while she was still overseeing a $23.5 billion Air Force deal to lease Boeing tankers. Druyun, who pleaded guilty to one felony count of conspiracy in April, was due to be sentenced on Aug. 6. There was a chance Druyun's sentencing would be postponed until after Sears enters his plea a week later, the source said. (Reuters 08:50 PM ET 07/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=985...a&s=rb0407 27 ---------------------------------------------------------------- A former BOEING CO. executive will plead guilty to a criminal charge related to the hiring of an Air Force official who oversaw a Boeing contract to supply refueling jets to the military, a source familiar with the plea agreement said. Former CFO Michael Sears will plead guilty to one charge of aiding and abetting the hiring of Darleen Druyun, who worked on Boeing's negotiations to lease 100 767 tankers to the military, the source said. Sears is expected to enter his plea next week or soon after in U.S. District Court in Alexandria, Virginia, the source said. He faced charges of "aiding and abetting acts affecting a personal financial interest," according to court documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul McNulty, declined to comment. (Reuters 04:17 PM ET 07/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=984...a&s=rb0407 26 ---------------------------------------------------------------- On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera wrote in :: BOEING CO. does not foresee a charge to earnings over the stalled $23.5 billion U.S. military air tanker deal, said Jim Albaugh, chief executive of the company's defense business. In an interview, Albaugh said the company continued to believe the deal for the Air Force to acquire an initial 100 modified 767 air refuelling tankers will succeed, although the form is uncertain. Boeing's most recent comments call for a deal to be made in the spring of 2005. Albaugh told Reuters his guess was that the deal will revert to a total purchase arrangement. (Reuters 08:51 AM ET 07/22/2004) Mo http://q1.schwab.com/s/r?l=248&a=983...a&s=rb0407 22 ----------------------------------------------------------------On Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote: A decision on a potential shutdown of Boeing 767 jet production will probably need to be made by next spring, the president of BOEING CO.'s commercial plane division said. "We have around 24 767s in our backlog ... so we probably need to make a decision in the spring of next year about what we do with the 767 line," said Boeing Commercial Airplanes President Alan Mulally. "Clearly the plan is to replace the 767 line with the 7E7." Mulally said the U.S. Air Force would be working through various evaluations of a proposed U.S. air refueling tanker in the meantime. The company still hopes it will meet the requirements of the program, he said. U.S. Defense Secretary Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to sell and lease the Air Force an initial 100 tankers based on the 767 commercial platform. (Reuters 07:20 AM ET 07/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19 ---------------------------------------------------------------- On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera wrote: The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 multibillio n-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 teleconferenc e. "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 multibillio n-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 multibilli on-dollar acquisition of 100 modified BOEING CO. refuelin g 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 Accounti ng 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 congressio nal 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 authoriz ed under a law that funds the replacement of Air Force refuelin g 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 expensiv e. (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 responsibi lity 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 inspecto r 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: : Congressi onal conferees have approved a multibillion-dollar compromis e plan for the Air Force to acquire 100 BOEING CO. refueli ng aircraft, leasing the first 20 of them, the House of Represent atives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed service s 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 earmark s $400 billion for the Defense Department and national securit y 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 independe nt assessment of the condition of the aging fleet of KC-135 tankers. (Reuter s 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 weapon s system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expens e. Originally, the Air Force had sought to lease all 100 tanker s, 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 replacin g its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reute rs 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 negotiat ions continue over an original proposal to lease and then buy 100 planes. (Reute rs 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: : Defen se Secretary Donald Rumsfeld said he would "dearly love" Congres s to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal accepta nce of a scaled-back lease proposed by the Senate Armed Service s Committee, alone among four congressional oversight panel s 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 expecte d," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buyin g the rest -- a compromise formula designed to save billion s. (Reuter s 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 maintai n 100 767 refueling tankers, the latest congressional repor t 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 provi de initial maintenance support. CRS said many other compani es routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the mainten ance 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 handl e maintenance. (Reuter s 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 jetlin ers to the Air Force as refueling planes, congressional offici als and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfe ld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Commit tee, on the other. Among other things, the chill reflects piqu e at what officials on both sides of the aisle deem Rumsfe ld's sometimes-dismissive approach to Congress, for instan ce on the situation in post-war Iraq. But it also reflec ts perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Depart ment, and the panel's second-ranking Republican, John McCa in of Arizona. (Reute rs 06:20 PM ET 10/24/2003) More : 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 reques t 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 Commer ce Committee Chairman John McCain's written request sent Wednes day, 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 need ed capability sooner than it could buy outright without pinchi ng other combat priorities. McCain has denounced the propos ed lease, designed to lead to purchases, as a bonanza for Boei ng and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reute rs 05:00 PM ET 10/23/2003) More : 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 Commit tee continues weigh its options, including approving a scal ed-down lease. The armed services panel, chaired by Virgin ia Republican Sen. John Warner, is the last of four commit tees that must approve the lease deal -- which the Air Forc e says it needs to begin replacing its fleet of aging mida ir refueling tankers without incurring significant upfront fundin g 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. (Reute rs 06:49 PM ET 10/21/2003) More : 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 wrot e 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 congr essional reports poking holes in what would be the first suc h rental of a major weapons system. "The Air Force is hoping tha t the Senate Armed Services Committee will approve our origi nal proposal to lease 100 tankers," said a spokeswoman, Maj or Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military overs ight panels that has yet to approve the deal, designed to acqui re the tankers without significant upfront funding that wou ld squeeze other combat priorities. The service defended the lea se a day after the Congressional Budget Office found taxpa yers could reap $6.7 billion in savings with an outright purch ase, which is standard procurement procedure for arms syste ms. (Reut ers 04:21 PM ET 10/17/2003) Mor e: 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 wro te in Message-Id: : Th e top Democrat on the House of Representatives' Armed Services Comm ittee said he was having second thoughts on a $22.4 billion Ai r Force plan to lease then buy BOEING Co. refueling planes, citi ng studies that have challenged its financial soundness. "I thin k it would be useful to bring members up to date on the many repo rts and studies that have emerged since our hearings on the issu e," Rep. Ike Skelton of Missouri wrote panel chairman Dunc an Hunter, R-Calif., on Wednesday. Studies by the Cong ressional Budget Office, General Accounting Office, Inst itute for Defense Analyses and Congressional Research Serv ice have shown that acquiring the 100 modified Boeing 767 airc raft initially through a lease, as the Air Force hopes to do , would cost $5.5 billion more than buying them outright. (Reu ters 12:53 PM ET 10/09/2003) More : http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- Th e House of Representatives' Appropriations Committee voted to pres s ahead with a $22.4 billion proposal to lease then buy BOEI NG CO. 737s as Air Force refueling planes. But the move to leas e 100 modified 767s as mid-air tankers starting in 2006 -- iden tical to a Senate appropriations measure -- highlighted misg ivings about the deal among what appeared to be a growing numb er of lawmakers. The panel shot down, 33 to 28, a rival plan , jokingly introduced by its top Democrat, David Obey of Wisc onsin, that would have earmarked $14 billion to start buyi ng the aircraft outright rather than leasing them first. "I f you want to save the taxpayers money, the best way is to bu y them now," Obey said in bating colleagues to own up to the leas e's extra costs and exercise what he portrayed as fiscal resp onsibility. (Reu ters 03:16 PM ET 10/09/2003) More : 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 wrot e in Message-Id: : N ew questions emerged about the personal ties between BOEING CO. a nd Darleen Druyun, a former top Air Force official who got a j ob with the company after helping negotiate a multibillion dol lar deal to lease Boeing 767s as airborne refueling tankers. T he National Legal and Policy Center, a conservative nonprofit gro up opposing the lease deal, released public records that sho w Druyun agreed to sell her Virginia home to a senior Boeing att orney while still working for the Air Force as a procurement off icial. She had been deputy assistant secretary for Air Force acq uisition and management. The group also said Druyun's dau ghter and son-in-law both work for Boeing, a fact confirmed b y the Chicago-based company. (Re uters 03:18 PM ET 10/07/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 === ================================================== =========== O n Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wro te in Message-Id: : Th e nonpartisan U.S. Congressional Research Service raised new do ubts on Wednesday about a fresh Pentagon push to acquire BO EING CO. 767 aircraft as midair refueling tankers through a le ase. The research service said the Defense Department's la test proposal bolstered the case for purchasing the aircraft ou tright, rather than leasing them first in a deal valued at $2 2.4 billion. Earlier this month the Senate Armed Services Co mmittee put off what was to have been a final vote on the le ase proposal. Chairman John Warner, a Virginia Republican, an d the committee's top Democrat, Carl Levin of Michigan, asked th e Pentagon for data on leasing no more than 25 Boeing 767s, do wn from the 100 sought by the Air Force. (R euters 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 wr ote in Message-Id: : A ir Force officials on Monday staunchly defended a $22.4 billion a ir tanker lease agreement some critics say is a sweetheart d eal for BOEING CO. in the face of tough questions from Senate a ides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. M ichael Zettler, deputy chief of staff for installations and l ogistics, met with military legislative aides hoping to pave t he way for approval by the Senate Armed Services Committee of t he plan to lease then buy 100 Boeing 767 tankers. They held a s imilar -- and equally contentious -- briefing for Senate p rofessional staffers on Friday, aides said. Despite the l ast-minute push by the Air Force, Senate aides said they did n ot expect the Senate Armed Services Committee to vote on the c ontroversial lease deal this week, putting off any action u ntil at least mid-October, after a one-week recess. The c ommittee is the final of four congressional panels to review t he deal. The other three have approved it. ( Reuters 08:08 PM ET 09/29/2003) M o http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 = ================================================== ============= O n Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera w rote 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, congressional 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 proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman 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 inflation. 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 proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7esh : 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 4n8e4v8av75ot2gflip94v7 : 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 d7d92v8q5sdkupes0o5fov : 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 ifpdtuovlha5l2fbpreoj : 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 dvissu4135etdu8toc2l : 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 i4disug2gpmufjvj7kk : 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 d5panukhiq14qdrpfa : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================== ============================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbp : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelphi a.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3 : 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:8j8cjug531s ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#76
August 30th 04, 02:32 PM
|
|||
|
|||
|
U.S. prosecutors are looking into possible improper employment-related contacts between the head of BOEING CO.'s defense unit and a high-ranking Air Force official, The Wall Street Journal said, citing unnamed people familiar with the matter. James Albaugh, chief executive of Chicago-based Boeing's $27 billion military and space unit, has on numerous occasions said he had no role in the hiring of the Air Force official, Darleen Druyun, the newspaper said. Boeing fired Druyun and CFO Michael Sears last November, saying they violated company ethics by discussing a job before Druyun stopped work on Boeing-related Air Force programs. On Dec. 1, Boeing Chief Executive Phil Condit resigned amid the fallout. Druyun pleaded guilty to conspiracy in April and agreed to cooperate with prosecutors. (Reuters 05:34 AM ET 08/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 27 ---------------------------------------------------------------- Republican Sen. John McCain, a key critic of a stalled $23.5 billion Air Force deal to lease and buy 100 BOEING CO. aerial refueling tankers, chided a top general for focusing on corrosion problems with existing KC-135s tankers, which McCain said had been disproved. The Arizona senator told Air Force Gen. John Handy, commander of the Air Mobility Command, in a letter made public by McCain's office on Wednesday that Handy's comments in a recent U.S. News & World Report article were perpetuating an argument for leasing rather than buying tankers that had been "conclusively shown to be without merit." McCain cited a recent Defense Science Board, which concluded there was "no evidence that corrosion poses an imminent catastrophic threat" to the KC-135s. That report, among others critical of the proposed tanker lease deal, prompted Defense Secretary Donald Rumsfeld to put off any decision on the deal until two additional studies were completed in November, and Air Force officials now say they do not expect a decision on the deal until next year. (Reuters 08:39 PM ET 08/25/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 25 ---------------------------------------------------------------- On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera wrote in :: Federal prosecutors have canceled an Aug. 11 hearing at which former BOEING CO. CFO Michael Sears planned to plead guilty to aiding and abetting the hiring of a former Air Force official while she was overseeing a huge Boeing contract. Sam Dibbley, spokeswoman for U.S. attorney Paul McNulty, said the hearing was removed from the docket of the U.S. District Court in Alexandria, Va., but declined to explain the decision by prosecutors. A source familiar with the case said he believed Sears' plea agreement with the government was still intact. Dibbley said a sentencing hearing for Darleen Druyun, the former Air Force official who pleaded guilty to one felony count of conspiracy in April, remained scheduled for Sept. 3. Jamie Wareham, an attorney for Michael Sears, declined comment on the case. (Reuters 11:58 AM ET 08/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=991...a&s=rb0408 10 ---------------------------------------------------------------- On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera wrote in :: The sentencing of a former U.S. Air Force official who admitted illegally negotiating a job with BOEING CO. while overseeing its contracts has been postponed until Sept. 3, court papers showed on Wednesday. Darleen Druyun, the former No. 2 Air Force acquisitions official, pleaded guilty in April to conspiracy for discussing the job with Boeing before she disqualified herself from overseeing the company's dealings with the Air Force, including a multibillion dollar deal to lease 100 767 refueling tankers. Papers filed with the U.S. District Court in Alexandria, Va., showed Druyun's sentencing had been rescheduled. A source familiar with the case said the sentencing was delayed until after Aug. 11 when former Boeing CFO Michael Sears is due to enter a plea to a criminal charge related to the job discussions. Sears plans to plead guilty to one charge of aiding and abetting Druyun's hiring, another source said on condition of anonymity. Druyun and Sears both face a maximum fine of $250,000 and five years in prison, although federal sentencing guidelines will likely limit the fines and jail terms in both cases. (Reuters 03:27 PM ET 07/28/2004) Mo http://q1.schwab.com/s/r?l=248&a=986...a&s=rb0407 28 ---------------------------------------------------------------- Former BOEING CO. CFO Michael Sears will enter a guilty plea to a criminal charge at a hearing in federal district court on Aug. 11, a source familiar with the case said on Tuesday. The source said Sears plans to plead guilty to one charge of aiding and abetting the hiring of former Air Force official Darleen Druyun while she was still overseeing a $23.5 billion Air Force deal to lease Boeing tankers. Druyun, who pleaded guilty to one felony count of conspiracy in April, was due to be sentenced on Aug. 6. There was a chance Druyun's sentencing would be postponed until after Sears enters his plea a week later, the source said. (Reuters 08:50 PM ET 07/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=985...a&s=rb0407 27 ---------------------------------------------------------------- A former BOEING CO. executive will plead guilty to a criminal charge related to the hiring of an Air Force official who oversaw a Boeing contract to supply refueling jets to the military, a source familiar with the plea agreement said. Former CFO Michael Sears will plead guilty to one charge of aiding and abetting the hiring of Darleen Druyun, who worked on Boeing's negotiations to lease 100 767 tankers to the military, the source said. Sears is expected to enter his plea next week or soon after in U.S. District Court in Alexandria, Virginia, the source said. He faced charges of "aiding and abetting acts affecting a personal financial interest," according to court documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul McNulty, declined to comment. (Reuters 04:17 PM ET 07/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=984...a&s=rb0407 26 ---------------------------------------------------------------- On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera wrote in :: BOEING CO. does not foresee a charge to earnings over the stalled $23.5 billion U.S. military air tanker deal, said Jim Albaugh, chief executive of the company's defense business. In an interview, Albaugh said the company continued to believe the deal for the Air Force to acquire an initial 100 modified 767 air refuelling tankers will succeed, although the form is uncertain. Boeing's most recent comments call for a deal to be made in the spring of 2005. Albaugh told Reuters his guess was that the deal will revert to a total purchase arrangement. (Reuters 08:51 AM ET 07/22/2004) Mo http://q1.schwab.com/s/r?l=248&a=983...a&s=rb0407 22 ----------------------------------------------------------------On Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote: A decision on a potential shutdown of Boeing 767 jet production will probably need to be made by next spring, the president of BOEING CO.'s commercial plane division said. "We have around 24 767s in our backlog ... so we probably need to make a decision in the spring of next year about what we do with the 767 line," said Boeing Commercial Airplanes President Alan Mulally. "Clearly the plan is to replace the 767 line with the 7E7." Mulally said the U.S. Air Force would be working through various evaluations of a proposed U.S. air refueling tanker in the meantime. The company still hopes it will meet the requirements of the program, he said. U.S. Defense Secretary Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to sell and lease the Air Force an initial 100 tankers based on the 767 commercial platform. (Reuters 07:20 AM ET 07/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19 ---------------------------------------------------------------- On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera wrote: The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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, congressiona l 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 improprietie s, 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 multibilli on-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 teleconferen ce. "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 requestin g 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 multibilli on-dollar plan to acquire 100 BOEING CO. 767s as refuelin g planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, Presiden t 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 committe e 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 multibill ion-dollar acquisition of 100 modified BOEING CO. refueli ng 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 Accountin g 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 congressi onal approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentago n to cost $27.6 billion through fiscal 2017. (Reuter s 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 authorize d under a law that funds the replacement of Air Force refueli ng 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 . (Reuter s 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 unveile d 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 responsib ility for internal auditing, ethics, import-export complianc e, 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 inspect or 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. (Reuter s 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: : Congress ional conferees have approved a multibillion-dollar compromi se plan for the Air Force to acquire 100 BOEING CO. refuelin g aircraft, leasing the first 20 of them, the House of Represen tatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed servic es 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 earmar ks $400 billion for the Defense Department and national securi ty programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defens e Department will be required to conduct and report on an independ ent assessment of the condition of the aging fleet of KC-135 tankers. (Reute rs 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 plane s under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outrigh t. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapo ns 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 replaci ng its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuter s 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 negotia tions continue over an original proposal to lease and then buy 100 planes. (Reuter s 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: : Defens e Secretary Donald Rumsfeld said he would "dearly love" Congre ss to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal accept ance of a scaled-back lease proposed by the Senate Armed Servic es Committee, alone among four congressional oversight pane ls to spurn the original plan, valued at more than $22 billio n, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expect ed," Rumsfeld told reporters at the Pentagon. The Senate pane l has proposed acquiring up to 100 planes by leasing 20 and buyi ng the rest -- a compromise formula designed to save billio ns. (Reute rs 04:28 PM ET 10/30/2003) More : 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 Forc e proposal to give BOEING CO. a $5.3 billion contract to mainta in 100 767 refueling tankers, the latest congressional repo rt 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 provid e initial maintenance support. CRS said many other compan ies routinely serviced 767s, and Boeing was not "the only , or even the largest, organization capable of handling the mainte nance 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 sinc e much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to hand le maintenance. (Reute rs 06:57 PM ET 10/28/2003) More : 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 wrot e in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a tol l on BOEING CO.'s multibillion-dollar drive to lease jetli ners to the Air Force as refueling planes, congressional offic ials and private analysts said on Friday. The Boeing issue lai d bare growing strains between Defense Secretary Donald Rumsf eld and his top lieutenants, on the one hand, and the two mos t powerful Republicans on the Senate Armed Services Commi ttee, on the other. Among other things, the chill reflects piq ue at what officials on both sides of the aisle deem Rumsf eld's sometimes-dismissive approach to Congress, for insta nce on the situation in post-war Iraq. But it also refle cts perceived slights to Armed Services Committee Chairman Joh n Warner of Virginia, Congress's top overseer of the Defense Depar tment, and the panel's second-ranking Republican, John McCai n of Arizona. (Reut ers 06:20 PM ET 10/24/2003) Mor e: 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 reque st to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling plane s. The Office of Management and Budget will review Senate Comme rce Committee Chairman John McCain's written request sent Wedne sday, said a spokesman. President Bush said on Sept. 16 tha t he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it neede d capability sooner than it could buy outright without pinch ing other combat priorities. McCain has denounced the propo sed lease, designed to lead to purchases, as a bonanza for Boein g and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reut ers 05:00 PM ET 10/23/2003) Mor e: 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 Commi ttee continues weigh its options, including approving a scale d-down lease. The armed services panel, chaired by Virgi nia Republican Sen. John Warner, is the last of four commi ttees that must approve the lease deal -- which the Air For ce says it needs to begin replacing its fleet of aging midai r refueling tankers without incurring significant upfront fundi ng costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports onl y underscored his concerns about the higher cost of leasing. (Reut ers 06:49 PM ET 10/21/2003) Mor e: 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 wro te in Message-Id: : Th e U.S. Air Force urged lawmakers to approve its plan to lease 10 0 BOEING CO. 767 refueling planes despite three new cong ressional reports poking holes in what would be the first su ch rental of a major weapons system. "The Air Force is hoping th at the Senate Armed Services Committee will approve our orig inal proposal to lease 100 tankers," said a spokeswoman, Majo r Karen Finn. "The Air Force really needs this capability." Th e Armed Services Committee is alone among the four military over sight panels that has yet to approve the deal, designed to acqu ire the tankers without significant upfront funding that woul d squeeze other combat priorities. The service defended the leas e a day after the Congressional Budget Office found taxp ayers could reap $6.7 billion in savings with an outright purc hase, which is standard procurement procedure for arms syst ems. (Reu ters 04:21 PM ET 10/17/2003) More : 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 wrot e in Message-Id: : T he top Democrat on the House of Representatives' Armed Services Com mittee said he was having second thoughts on a $22.4 billion A ir Force plan to lease then buy BOEING Co. refueling planes, cit ing studies that have challenged its financial soundness. "I thi nk it would be useful to bring members up to date on the many rep orts and studies that have emerged since our hearings on the iss ue," Rep. Ike Skelton of Missouri wrote panel chairman Dun can Hunter, R-Calif., on Wednesday. Studies by the Con gressional Budget Office, General Accounting Office, Ins titute for Defense Analyses and Congressional Research Ser vice have shown that acquiring the 100 modified Boeing 767 air craft initially through a lease, as the Air Force hopes to d o, would cost $5.5 billion more than buying them outright. (Re uters 12:53 PM ET 10/09/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- T he House of Representatives' Appropriations Committee voted to pre ss ahead with a $22.4 billion proposal to lease then buy BOE ING CO. 737s as Air Force refueling planes. But the move to lea se 100 modified 767s as mid-air tankers starting in 2006 -- ide ntical to a Senate appropriations measure -- highlighted mis givings about the deal among what appeared to be a growing num ber of lawmakers. The panel shot down, 33 to 28, a rival pla n, jokingly introduced by its top Democrat, David Obey of Wis consin, that would have earmarked $14 billion to start buy ing the aircraft outright rather than leasing them first. " If you want to save the taxpayers money, the best way is to b uy them now," Obey said in bating colleagues to own up to the lea se's extra costs and exercise what he portrayed as fiscal res ponsibility. (Re uters 03:16 PM ET 10/09/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- O n Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wro te in Message-Id: : Ne w questions emerged about the personal ties between BOEING CO. an d Darleen Druyun, a former top Air Force official who got a jo b with the company after helping negotiate a multibillion do llar deal to lease Boeing 767s as airborne refueling tankers. Th e National Legal and Policy Center, a conservative nonprofit gr oup opposing the lease deal, released public records that sh ow Druyun agreed to sell her Virginia home to a senior Boeing at torney while still working for the Air Force as a procurement of ficial. She had been deputy assistant secretary for Air Force ac quisition and management. The group also said Druyun's da ughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (R euters 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 wr ote in Message-Id: : T he nonpartisan U.S. Congressional Research Service raised new d oubts on Wednesday about a fresh Pentagon push to acquire B OEING CO. 767 aircraft as midair refueling tankers through a l ease. The research service said the Defense Department's l atest proposal bolstered the case for purchasing the aircraft o utright, rather than leasing them first in a deal valued at $ 22.4 billion. Earlier this month the Senate Armed Services C ommittee put off what was to have been a final vote on the l ease proposal. Chairman John Warner, a Virginia Republican, a nd the committee's top Democrat, Carl Levin of Michigan, asked t he Pentagon for data on leasing no more than 25 Boeing 767s, d own from the 100 sought by the Air Force. ( Reuters 07:46 PM ET 10/01/2003) M o http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- O n Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera w rote 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 controversial 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, congressional 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 proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman 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 inflation. 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 proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7es : 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 4n8e4v8av75ot2gflip94v : 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 d7d92v8q5sdkupes0o5fo : 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 ifpdtuovlha5l2fbpreo : 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 dvissu4135etdu8toc2 : 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 i4disug2gpmufjvj7k : 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 d5panukhiq14qdrpf : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================= =============================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihb : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelph ia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6. : 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:8j8cjug531 ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#77
September 3rd 04, 02:24 AM
|
|||
|
|||
|
Moving to protect "ongoing criminal investigations," the government has sought to seal court records involving Darleen Druyun, a former U.S. Air Force official who has admitted to illegally negotiating a job with BOEING while still overseeing its Air Force contracts. A motion filed on Wednesday in U.S. District Court for the Eastern District of Virginia did not say if the investigations involved any Boeing Co. officials other than Druyun and Michael Sears, the company's former CFO. Last November, Boeing fired both Druyun, who had served as the Air Force's No. 2 weapons buyer, and Sears over their employment discussions. Boeing Chief Executive Phil Condit resigned a week later amid the fallout. (Reuters 02:25 PM ET 09/02/2004) Mo http://q1.schwab.com/s/r?l=248&a=998...a&s=rb0409 02 ================================================== ============== On Mon, 30 Aug 2004 13:32:26 GMT, Larry Dighera wrote in :: U.S. prosecutors are looking into possible improper employment-related contacts between the head of BOEING CO.'s defense unit and a high-ranking Air Force official, The Wall Street Journal said, citing unnamed people familiar with the matter. James Albaugh, chief executive of Chicago-based Boeing's $27 billion military and space unit, has on numerous occasions said he had no role in the hiring of the Air Force official, Darleen Druyun, the newspaper said. Boeing fired Druyun and CFO Michael Sears last November, saying they violated company ethics by discussing a job before Druyun stopped work on Boeing-related Air Force programs. On Dec. 1, Boeing Chief Executive Phil Condit resigned amid the fallout. Druyun pleaded guilty to conspiracy in April and agreed to cooperate with prosecutors. (Reuters 05:34 AM ET 08/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 27 ---------------------------------------------------------------- Republican Sen. John McCain, a key critic of a stalled $23.5 billion Air Force deal to lease and buy 100 BOEING CO. aerial refueling tankers, chided a top general for focusing on corrosion problems with existing KC-135s tankers, which McCain said had been disproved. The Arizona senator told Air Force Gen. John Handy, commander of the Air Mobility Command, in a letter made public by McCain's office on Wednesday that Handy's comments in a recent U.S. News & World Report article were perpetuating an argument for leasing rather than buying tankers that had been "conclusively shown to be without merit." McCain cited a recent Defense Science Board, which concluded there was "no evidence that corrosion poses an imminent catastrophic threat" to the KC-135s. That report, among others critical of the proposed tanker lease deal, prompted Defense Secretary Donald Rumsfeld to put off any decision on the deal until two additional studies were completed in November, and Air Force officials now say they do not expect a decision on the deal until next year. (Reuters 08:39 PM ET 08/25/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 25 ---------------------------------------------------------------- On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera wrote in :: Federal prosecutors have canceled an Aug. 11 hearing at which former BOEING CO. CFO Michael Sears planned to plead guilty to aiding and abetting the hiring of a former Air Force official while she was overseeing a huge Boeing contract. Sam Dibbley, spokeswoman for U.S. attorney Paul McNulty, said the hearing was removed from the docket of the U.S. District Court in Alexandria, Va., but declined to explain the decision by prosecutors. A source familiar with the case said he believed Sears' plea agreement with the government was still intact. Dibbley said a sentencing hearing for Darleen Druyun, the former Air Force official who pleaded guilty to one felony count of conspiracy in April, remained scheduled for Sept. 3. Jamie Wareham, an attorney for Michael Sears, declined comment on the case. (Reuters 11:58 AM ET 08/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=991...a&s=rb0408 10 ---------------------------------------------------------------- On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera wrote in :: The sentencing of a former U.S. Air Force official who admitted illegally negotiating a job with BOEING CO. while overseeing its contracts has been postponed until Sept. 3, court papers showed on Wednesday. Darleen Druyun, the former No. 2 Air Force acquisitions official, pleaded guilty in April to conspiracy for discussing the job with Boeing before she disqualified herself from overseeing the company's dealings with the Air Force, including a multibillion dollar deal to lease 100 767 refueling tankers. Papers filed with the U.S. District Court in Alexandria, Va., showed Druyun's sentencing had been rescheduled. A source familiar with the case said the sentencing was delayed until after Aug. 11 when former Boeing CFO Michael Sears is due to enter a plea to a criminal charge related to the job discussions. Sears plans to plead guilty to one charge of aiding and abetting Druyun's hiring, another source said on condition of anonymity. Druyun and Sears both face a maximum fine of $250,000 and five years in prison, although federal sentencing guidelines will likely limit the fines and jail terms in both cases. (Reuters 03:27 PM ET 07/28/2004) Mo http://q1.schwab.com/s/r?l=248&a=986...a&s=rb0407 28 ---------------------------------------------------------------- Former BOEING CO. CFO Michael Sears will enter a guilty plea to a criminal charge at a hearing in federal district court on Aug. 11, a source familiar with the case said on Tuesday. The source said Sears plans to plead guilty to one charge of aiding and abetting the hiring of former Air Force official Darleen Druyun while she was still overseeing a $23.5 billion Air Force deal to lease Boeing tankers. Druyun, who pleaded guilty to one felony count of conspiracy in April, was due to be sentenced on Aug. 6. There was a chance Druyun's sentencing would be postponed until after Sears enters his plea a week later, the source said. (Reuters 08:50 PM ET 07/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=985...a&s=rb0407 27 ---------------------------------------------------------------- A former BOEING CO. executive will plead guilty to a criminal charge related to the hiring of an Air Force official who oversaw a Boeing contract to supply refueling jets to the military, a source familiar with the plea agreement said. Former CFO Michael Sears will plead guilty to one charge of aiding and abetting the hiring of Darleen Druyun, who worked on Boeing's negotiations to lease 100 767 tankers to the military, the source said. Sears is expected to enter his plea next week or soon after in U.S. District Court in Alexandria, Virginia, the source said. He faced charges of "aiding and abetting acts affecting a personal financial interest," according to court documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul McNulty, declined to comment. (Reuters 04:17 PM ET 07/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=984...a&s=rb0407 26 ---------------------------------------------------------------- On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera wrote in :: BOEING CO. does not foresee a charge to earnings over the stalled $23.5 billion U.S. military air tanker deal, said Jim Albaugh, chief executive of the company's defense business. In an interview, Albaugh said the company continued to believe the deal for the Air Force to acquire an initial 100 modified 767 air refuelling tankers will succeed, although the form is uncertain. Boeing's most recent comments call for a deal to be made in the spring of 2005. Albaugh told Reuters his guess was that the deal will revert to a total purchase arrangement. (Reuters 08:51 AM ET 07/22/2004) Mo http://q1.schwab.com/s/r?l=248&a=983...a&s=rb0407 22 ----------------------------------------------------------------On Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote: A decision on a potential shutdown of Boeing 767 jet production will probably need to be made by next spring, the president of BOEING CO.'s commercial plane division said. "We have around 24 767s in our backlog ... so we probably need to make a decision in the spring of next year about what we do with the 767 line," said Boeing Commercial Airplanes President Alan Mulally. "Clearly the plan is to replace the 767 line with the 7E7." Mulally said the U.S. Air Force would be working through various evaluations of a proposed U.S. air refueling tanker in the meantime. The company still hopes it will meet the requirements of the program, he said. U.S. Defense Secretary Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to sell and lease the Air Force an initial 100 tankers based on the 767 commercial platform. (Reuters 07:20 AM ET 07/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19 ---------------------------------------------------------------- On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera wrote: The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 headquarter s 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, congression al 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 consequence s 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 employmen t 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 multibillio n-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 teleconfere nce. "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 improperl y 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 obligatio n 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 refuelin g 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 requesti ng 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 Thursda y to force disclosure of Pentagon records on a multibill ion-dollar plan to acquire 100 BOEING CO. 767s as refueli ng planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, Preside nt 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 committ ee 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 Democra t; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuter s 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 multibil lion-dollar acquisition of 100 modified BOEING CO. refuelin g 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 Accounti ng 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 congress ional approval Wednesday to lease 20 modified 767s as tanker s and buy up to 80 others -- a deal projected by the Pentag on to cost $27.6 billion through fiscal 2017. (Reute rs 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 authoriz ed under a law that funds the replacement of Air Force refuelin g 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 dollar s 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 expensiv e. (Reute rs 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 unveil ed a new internal ethics office reporting directly to compan y Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsi bility for internal auditing, ethics, import-export complian ce, 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 inspecto r 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. (Reute rs 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: : Congres sional conferees have approved a multibillion-dollar comprom ise plan for the Air Force to acquire 100 BOEING CO. refueli ng aircraft, leasing the first 20 of them, the House of Represe ntatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed service s panels agreed the remaining 80 would be bought. The lease s 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 earmark s $400 billion for the Defense Department and national securit y programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defen se Department will be required to conduct and report on an indepen dent assessment of the condition of the aging fleet of KC-135 tankers. (Reuter s 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 plan es under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outrig ht. If approved by lawmakers, as now expected, the deal woul d mark the first lease, rather than purchase, of a major weapon s system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expens e. Originally, the Air Force had sought to lease all 100 tanker s, 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 replac ing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reute rs 03:16 PM ET 11/06/2003) More : 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," Whit e House spokesman Scott McClellan said as congressional negoti ations continue over an original proposal to lease and then buy 100 planes. (Reute rs 10:17 AM ET 11/06/2003) More : 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 wrot e in Message-Id: : Defen se Secretary Donald Rumsfeld said he would "dearly love" Congr ess to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal accep tance of a scaled-back lease proposed by the Senate Armed Servi ces Committee, alone among four congressional oversight panel s to spurn the original plan, valued at more than $22 billi on, to lease then buy 100 planes. "Political compromise is wha t we do when the marbles have been divided and it's to be expec ted," Rumsfeld told reporters at the Pentagon. The Senate pan el has proposed acquiring up to 100 planes by leasing 20 and buyin g the rest -- a compromise formula designed to save billi ons. (Reut ers 04:28 PM ET 10/30/2003) Mor e: 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 For ce proposal to give BOEING CO. a $5.3 billion contract to maint ain 100 767 refueling tankers, the latest congressional repor t 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 provi de initial maintenance support. CRS said many other compa nies routinely serviced 767s, and Boeing was not "the onl y, or even the largest, organization capable of handling the maint enance needs of the 767." Air Force Secretary James Roche tol d the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing sin ce much of the 767 engineering data was proprietary. But CRS sai d much of this data could be licensed to a third party to handl e maintenance. (Reut ers 06:57 PM ET 10/28/2003) Mor e: 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 wro te in Message-Id: : Ba d blood between the U.S. Congress and the Pentagon has taken a to ll on BOEING CO.'s multibillion-dollar drive to lease jetl iners to the Air Force as refueling planes, congressional offi cials and private analysts said on Friday. The Boeing issue la id bare growing strains between Defense Secretary Donald Rums feld and his top lieutenants, on the one hand, and the two mo st powerful Republicans on the Senate Armed Services Comm ittee, on the other. Among other things, the chill reflects piqu e at what officials on both sides of the aisle deem Rums feld's sometimes-dismissive approach to Congress, for inst ance on the situation in post-war Iraq. But it also refl ects perceived slights to Armed Services Committee Chairman Jo hn Warner of Virginia, Congress's top overseer of the Defense Depa rtment, and the panel's second-ranking Republican, John McCa in of Arizona. (Reu ters 06:20 PM ET 10/24/2003) More : http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ==== ================================================== ========== Th e White House budget office discounted Thursday a key senator's requ est to "revisit" its endorsement of a multibillion-dollar Ai r Force plan to lease 100 BOEING CO. 767s as refueling plan es. The Office of Management and Budget will review Senate Comm erce Committee Chairman John McCain's written request sent Wedn esday, said a spokesman. President Bush said on Sept. 16 th at he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it need ed capability sooner than it could buy outright without pinc hing other combat priorities. McCain has denounced the prop osed lease, designed to lead to purchases, as a bonanza for Boei ng and a bad deal for taxpayers that does not comply with th e fiscal 2002 legislation that authorized it. (Reu ters 05:00 PM ET 10/23/2003) More : http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ==== ================================================== ========== Th e Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 10 0 BOEING CO. 767 tankers, as the Senate Armed Services Comm ittee continues weigh its options, including approving a scal ed-down lease. The armed services panel, chaired by Virg inia Republican Sen. John Warner, is the last of four comm ittees that must approve the lease deal -- which the Air Forc e says it needs to begin replacing its fleet of aging mida ir refueling tankers without incurring significant upfront fund ing costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports on ly underscored his concerns about the higher cost of leasing. (Reu ters 06:49 PM ET 10/21/2003) More : 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 wrot e in Message-Id: : T he U.S. Air Force urged lawmakers to approve its plan to lease 1 00 BOEING CO. 767 refueling planes despite three new con gressional reports poking holes in what would be the first suc h rental of a major weapons system. "The Air Force is hoping tha t the Senate Armed Services Committee will approve our ori ginal proposal to lease 100 tankers," said a spokeswoman, Maj or Karen Finn. "The Air Force really needs this capability." T he Armed Services Committee is alone among the four military ove rsight panels that has yet to approve the deal, designed to acq uire the tankers without significant upfront funding that wou ld squeeze other combat priorities. The service defended the lea se a day after the Congressional Budget Office found tax payers could reap $6.7 billion in savings with an outright pur chase, which is standard procurement procedure for arms sys tems. (Re uters 04:21 PM ET 10/17/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 === ================================================== =========== O n Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wro te in Message-Id: : Th e top Democrat on the House of Representatives' Armed Services Co mmittee said he was having second thoughts on a $22.4 billion Ai r Force plan to lease then buy BOEING Co. refueling planes, ci ting studies that have challenged its financial soundness. "I th ink it would be useful to bring members up to date on the many re ports and studies that have emerged since our hearings on the is sue," Rep. Ike Skelton of Missouri wrote panel chairman Du ncan Hunter, R-Calif., on Wednesday. Studies by the Co ngressional Budget Office, General Accounting Office, In stitute for Defense Analyses and Congressional Research Se rvice have shown that acquiring the 100 modified Boeing 767 ai rcraft initially through a lease, as the Air Force hopes to do , would cost $5.5 billion more than buying them outright. (R euters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- Th e House of Representatives' Appropriations Committee voted to pr ess ahead with a $22.4 billion proposal to lease then buy BO EING CO. 737s as Air Force refueling planes. But the move to le ase 100 modified 767s as mid-air tankers starting in 2006 -- id entical to a Senate appropriations measure -- highlighted mi sgivings about the deal among what appeared to be a growing nu mber of lawmakers. The panel shot down, 33 to 28, a rival pl an, jokingly introduced by its top Democrat, David Obey of Wi sconsin, that would have earmarked $14 billion to start bu ying the aircraft outright rather than leasing them first. "I f you want to save the taxpayers money, the best way is to bu y them now," Obey said in bating colleagues to own up to the le ase's extra costs and exercise what he portrayed as fiscal re sponsibility. (R euters 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 wr ote in Message-Id: : N ew questions emerged about the personal ties between BOEING CO. a nd Darleen Druyun, a former top Air Force official who got a j ob with the company after helping negotiate a multibillion d ollar deal to lease Boeing 767s as airborne refueling tankers. T he National Legal and Policy Center, a conservative nonprofit g roup opposing the lease deal, released public records that s how Druyun agreed to sell her Virginia home to a senior Boeing a ttorney while still working for the Air Force as a procurement o fficial. She had been deputy assistant secretary for Air Force a cquisition and management. The group also said Druyun's d aughter and son-in-law both work for Boeing, a fact confirmed b y the Chicago-based company. ( Reuters 03:18 PM ET 10/07/2003) M o http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 = ================================================== ============= O n Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera w rote 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 controversial 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, congressional 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 proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman 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 inflation. 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 proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7e : 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 4n8e4v8av75ot2gflip94 : 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 d7d92v8q5sdkupes0o5f : 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 ifpdtuovlha5l2fbpre : 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 dvissu4135etdu8toc : 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 i4disug2gpmufjvj7 : 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 d5panukhiq14qdrp : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================ ================================================ On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sih : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelp hia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6 : 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:8j8cjug53 ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
|
#78
September 15th 04, 02:39 AM
|
|||
|
|||
|
Air Force Secretary James Roche on Monday reiterated the need to begin replacing a fleet of aging KC-135 aerial refueling tankers, but said the Air Force was awaiting the results of two studies due in November. Defense Secretary Donald Rumsfeld put a proposed $23.5 billion Air Force deal to lease 20 BOEING CO. 767 tankers and buy up to 80 more on hold pending the additional reviews and a decision is not expected until early next year. Roche acknowledged the Air Force's initial plan to lease all 100 tankers, scaled back after lawmakers raised concerns about the higher cost of leasing versus direct procurement, had been viewed as "an outrage" by some. But he told reporters at the annual Air Force Association conference that he remained committed to exploring innovative acquisition strategies, especially since Congress did not object to leasing of other aircraft, computers or automobiles. (Reuters 07:07 PM ET 09/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=100...a&s=rb040 913 ---------------------------------------------------------------- On Fri, 03 Sep 2004 01:24:36 GMT, Larry Dighera wrote in :: Moving to protect "ongoing criminal investigations," the government has sought to seal court records involving Darleen Druyun, a former U.S. Air Force official who has admitted to illegally negotiating a job with BOEING while still overseeing its Air Force contracts. A motion filed on Wednesday in U.S. District Court for the Eastern District of Virginia did not say if the investigations involved any Boeing Co. officials other than Druyun and Michael Sears, the company's former CFO. Last November, Boeing fired both Druyun, who had served as the Air Force's No. 2 weapons buyer, and Sears over their employment discussions. Boeing Chief Executive Phil Condit resigned a week later amid the fallout. (Reuters 02:25 PM ET 09/02/2004) Mo http://q1.schwab.com/s/r?l=248&a=998...a&s=rb0409 02 ================================================= =============== On Mon, 30 Aug 2004 13:32:26 GMT, Larry Dighera wrote in :: U.S. prosecutors are looking into possible improper employment-related contacts between the head of BOEING CO.'s defense unit and a high-ranking Air Force official, The Wall Street Journal said, citing unnamed people familiar with the matter. James Albaugh, chief executive of Chicago-based Boeing's $27 billion military and space unit, has on numerous occasions said he had no role in the hiring of the Air Force official, Darleen Druyun, the newspaper said. Boeing fired Druyun and CFO Michael Sears last November, saying they violated company ethics by discussing a job before Druyun stopped work on Boeing-related Air Force programs. On Dec. 1, Boeing Chief Executive Phil Condit resigned amid the fallout. Druyun pleaded guilty to conspiracy in April and agreed to cooperate with prosecutors. (Reuters 05:34 AM ET 08/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 27 ---------------------------------------------------------------- Republican Sen. John McCain, a key critic of a stalled $23.5 billion Air Force deal to lease and buy 100 BOEING CO. aerial refueling tankers, chided a top general for focusing on corrosion problems with existing KC-135s tankers, which McCain said had been disproved. The Arizona senator told Air Force Gen. John Handy, commander of the Air Mobility Command, in a letter made public by McCain's office on Wednesday that Handy's comments in a recent U.S. News & World Report article were perpetuating an argument for leasing rather than buying tankers that had been "conclusively shown to be without merit." McCain cited a recent Defense Science Board, which concluded there was "no evidence that corrosion poses an imminent catastrophic threat" to the KC-135s. That report, among others critical of the proposed tanker lease deal, prompted Defense Secretary Donald Rumsfeld to put off any decision on the deal until two additional studies were completed in November, and Air Force officials now say they do not expect a decision on the deal until next year. (Reuters 08:39 PM ET 08/25/2004) Mo http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 25 ---------------------------------------------------------------- On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera wrote in :: Federal prosecutors have canceled an Aug. 11 hearing at which former BOEING CO. CFO Michael Sears planned to plead guilty to aiding and abetting the hiring of a former Air Force official while she was overseeing a huge Boeing contract. Sam Dibbley, spokeswoman for U.S. attorney Paul McNulty, said the hearing was removed from the docket of the U.S. District Court in Alexandria, Va., but declined to explain the decision by prosecutors. A source familiar with the case said he believed Sears' plea agreement with the government was still intact. Dibbley said a sentencing hearing for Darleen Druyun, the former Air Force official who pleaded guilty to one felony count of conspiracy in April, remained scheduled for Sept. 3. Jamie Wareham, an attorney for Michael Sears, declined comment on the case. (Reuters 11:58 AM ET 08/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=991...a&s=rb0408 10 ---------------------------------------------------------------- On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera wrote in :: The sentencing of a former U.S. Air Force official who admitted illegally negotiating a job with BOEING CO. while overseeing its contracts has been postponed until Sept. 3, court papers showed on Wednesday. Darleen Druyun, the former No. 2 Air Force acquisitions official, pleaded guilty in April to conspiracy for discussing the job with Boeing before she disqualified herself from overseeing the company's dealings with the Air Force, including a multibillion dollar deal to lease 100 767 refueling tankers. Papers filed with the U.S. District Court in Alexandria, Va., showed Druyun's sentencing had been rescheduled. A source familiar with the case said the sentencing was delayed until after Aug. 11 when former Boeing CFO Michael Sears is due to enter a plea to a criminal charge related to the job discussions. Sears plans to plead guilty to one charge of aiding and abetting Druyun's hiring, another source said on condition of anonymity. Druyun and Sears both face a maximum fine of $250,000 and five years in prison, although federal sentencing guidelines will likely limit the fines and jail terms in both cases. (Reuters 03:27 PM ET 07/28/2004) Mo http://q1.schwab.com/s/r?l=248&a=986...a&s=rb0407 28 ---------------------------------------------------------------- Former BOEING CO. CFO Michael Sears will enter a guilty plea to a criminal charge at a hearing in federal district court on Aug. 11, a source familiar with the case said on Tuesday. The source said Sears plans to plead guilty to one charge of aiding and abetting the hiring of former Air Force official Darleen Druyun while she was still overseeing a $23.5 billion Air Force deal to lease Boeing tankers. Druyun, who pleaded guilty to one felony count of conspiracy in April, was due to be sentenced on Aug. 6. There was a chance Druyun's sentencing would be postponed until after Sears enters his plea a week later, the source said. (Reuters 08:50 PM ET 07/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=985...a&s=rb0407 27 ---------------------------------------------------------------- A former BOEING CO. executive will plead guilty to a criminal charge related to the hiring of an Air Force official who oversaw a Boeing contract to supply refueling jets to the military, a source familiar with the plea agreement said. Former CFO Michael Sears will plead guilty to one charge of aiding and abetting the hiring of Darleen Druyun, who worked on Boeing's negotiations to lease 100 767 tankers to the military, the source said. Sears is expected to enter his plea next week or soon after in U.S. District Court in Alexandria, Virginia, the source said. He faced charges of "aiding and abetting acts affecting a personal financial interest," according to court documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul McNulty, declined to comment. (Reuters 04:17 PM ET 07/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=984...a&s=rb0407 26 ---------------------------------------------------------------- On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera wrote in :: BOEING CO. does not foresee a charge to earnings over the stalled $23.5 billion U.S. military air tanker deal, said Jim Albaugh, chief executive of the company's defense business. In an interview, Albaugh said the company continued to believe the deal for the Air Force to acquire an initial 100 modified 767 air refuelling tankers will succeed, although the form is uncertain. Boeing's most recent comments call for a deal to be made in the spring of 2005. Albaugh told Reuters his guess was that the deal will revert to a total purchase arrangement. (Reuters 08:51 AM ET 07/22/2004) Mo http://q1.schwab.com/s/r?l=248&a=983...a&s=rb0407 22 ----------------------------------------------------------------On Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote: A decision on a potential shutdown of Boeing 767 jet production will probably need to be made by next spring, the president of BOEING CO.'s commercial plane division said. "We have around 24 767s in our backlog ... so we probably need to make a decision in the spring of next year about what we do with the 767 line," said Boeing Commercial Airplanes President Alan Mulally. "Clearly the plan is to replace the 767 line with the 7E7." Mulally said the U.S. Air Force would be working through various evaluations of a proposed U.S. air refueling tanker in the meantime. The company still hopes it will meet the requirements of the program, he said. U.S. Defense Secretary Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to sell and lease the Air Force an initial 100 tankers based on the 767 commercial platform. (Reuters 07:20 AM ET 07/19/2004) Mo http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19 ---------------------------------------------------------------- On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera wrote: The Senate Armed Services Committee began reviewing about 2,000 pages of documents on a stalled $23.5 billion Air Force plan to lease and buy BOEING CO. 767 tankers, a spokesman said. "We did receive a batch of documents from the White House dealing with the tanker issue and we expect to receive more in the near future," said John Ullyot, spokesman for the committee and its chairman Sen. John Warner. The White House agreed to turn over the documents last week after a year-long standoff between Congress and the Pentagon, which had argued the documents should not be released since they involved internal deliberations. (Reuters 03:54 PM ET 07/14/2004) Mo http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14 ---------------------------------------------------------------- BOEING expects the Pentagon to make a final decision in March or April whether to approve a controversial deal to buy 100 tanker jets, the company's chief executive said. "There's a real need for these aircraft and the Air Force really wants them," CEO Harry Stonecipher told German daily Frankfurter Allgemeine Zeitung in comments to be published in Tuesday's edition. Should the deal, worth more than $20 billion, be delayed any further, Boeing would be forced to cease production of the 767 jet the tanker is based on, according to the CEO. The Pentagon put the tanker deal on hold Dec. 1 after Boeing fired its CFO for recruiting the Air Force's No. 2 weapons buyer while she was still overseeing tanker negotiations. The ex-Air Force official, Darleen Druyun, pleaded guilty in April to conspiracy and pledged to help federal prosecutors. (Reuters 04:20 PM ET 07/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12 ----------------------------------------------------------------On Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote: France's Airbus has qualified itself to vie with arch-rival BOEING CO. for a high-stakes U.S. refueling plane deal if the contest is reopened, Air Force Secretary James Roche said in an interview. "I don't care if the planes are made by Martians," Roche told the Financial Times. The comments suggest the Air Force is preparing for possible long delays in upgrading its aging tanker fleet and that Boeing could face stiff competition. Before a contracting fiasco derailed its tanker acquisition plans last year, the Air Force chose a Boeing 767 over the Airbus 330 for a revised $23.5 billion deal. Airbus is 80% owned by the European Aeronautic Defence and Space Co. NV. The rest is held by Britain's BAE SYSTEMS PLC. In the interview, Roche said he favored more European access to U.S. aerospace contracts to spur transatlantic competition. "It's the only way we're going to discipline the big airframe makers in the United States," he said. EADS has invested $90 million on a refueling boom to meet U.S. requirements and says it would compete with Boeing if invited to do so. (Reuters 04:41 PM ET 06/10/2004) Mo http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10 ------------------------------------------------------------------------ Sen. John McCain, the Arizona Republican who led congressional scrutiny of a stalled $23.5 billion BOEING CO. tanker deal, will offer an amendment to revoke a current law authorizing the Pentagon to lease Boeing 767s, his office said. Senators will consider the amendments when they resume work next week on a bill authorizing spending on Defense Department programs. An aide to McCain said the amendment would prevent the Pentagon from leasing 20 767s as aerial refueling tankers until two reports -- a formal analysis of the alternatives (AOA) and a mobility capability study -- are completed in November. "It seeks to revoke the authority that has been granted already for the Air Force to lease Boeing 767 aircraft," said one aide to McCain's Senate Commerce Committee, noting it was vital that Congress not predetermine the outcome of the AOA. (Reuters 07:46 PM ET 06/08/2004) Mo http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08 ----------------------------------------------------------------On Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote in Message-Id: : The chief executive of BOEING CO. said he remains confident the Pentagon would buy Boeing 767s as refueling tankers and predicted the U.S. fleet would never include tankers built by Europe's Airbus. "I do not think for a moment there will be Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told the Reuters Air and Defense Summit in Washington. The U.S. Defense Department last month said it was putting off until at least November a decision on whether it would reopen negotiations on a $23.5 billion plan to lease 20 and buy as many as 80 modified tankers based on Boeing's 767 airliner. Stonecipher said a version of the deal, whether it includes a lease component or not, was likely, since the Air Force still needed to replace its aging fleet of about 540 KC-135 tankers. But he said the longer the process dragged out, the more likely that its terms would have to be renegotiated. (Reuters 10:45 AM ET 06/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04 ---------------------------------------------------------------- On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera wrote in Message-Id: : 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 multibillio n 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 headquarte rs 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, congressiona l 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 consequenc es 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 championin g 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 resignatio n 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 improprietie s, 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 Developmen t 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 violatio n of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicke r. "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 employme nt 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 importan t 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 stronges t 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 corporat e turmoil and ethics problems would not upset multibilli on-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 teleconfer ence. "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 newspape r 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 refuelin g 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 improper ly 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 followin g the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligati on 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 refueli ng 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 requestin g a separate investigation by the Pentagon's inspector general , who launched a formal probe into improprieties in the tanker deal months ago. (Reuter s 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 Thursd ay to force disclosure of Pentagon records on a multibil lion-dollar plan to acquire 100 BOEING CO. 767s as refuelin g planes. In a letter to committee chairman John Warner , McCain linked his quest to the fate of Michael Wynne, Presiden t Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produc e records sought for oversight of the Boeing deal "as the committe e 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. (Reute rs 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 multibi llion-dollar acquisition of 100 modified BOEING CO. refueli ng planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumpe r, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Account ing 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 congres sional approval Wednesday to lease 20 modified 767s as tanke rs and buy up to 80 others -- a deal projected by the Pentago n to cost $27.6 billion through fiscal 2017. (Reuter s 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 authori zed under a law that funds the replacement of Air Force refueli ng tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senat e 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 dolla rs in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through lease s, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensi ve. (Reuter s 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEIN G CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveile d a new internal ethics office reporting directly to compa ny Chairman and CEO Phil Condit. Boeing said Senior VP Bonni e Soodik would lead the new organization, assuming respons ibility for internal auditing, ethics, import-export complia nce, 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 inspect or general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly share d proprietary data with Boeing during negotiations on a 767 tanke r lease deal. (Reuter s 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: : Congre ssional conferees have approved a multibillion-dollar compro mise plan for the Air Force to acquire 100 BOEING CO. refuel ing aircraft, leasing the first 20 of them, the House of Repres entatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed servic es panels agreed the remaining 80 would be bought. The leas es 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 earmar ks $400 billion for the Defense Department and national securi ty programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defens e Department will be required to conduct and report on an indepe ndent assessment of the condition of the aging fleet of KC-135 tankers. (Reute rs 10:08 AM ET 11/07/2003) More : 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 wrot e in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 plane s under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outri ght. If approved by lawmakers, as now expected, the deal wou ld mark the first lease, rather than purchase, of a major weapo ns system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expen se. Originally, the Air Force had sought to lease all 100 tanke rs, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 201 7. Under the new proposal, the Air Force would start repla cing its KC-135E tanker fleet, which average 43 years old, wit h leased KC-767A planes tankers in 2006. (Reut ers 03:16 PM ET 11/06/2003) Mor e: 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," Whi te House spokesman Scott McClellan said as congressional negot iations continue over an original proposal to lease and the n buy 100 planes. (Reut ers 10:17 AM ET 11/06/2003) Mor e: 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 wro te in Message-Id: : Defe nse Secretary Donald Rumsfeld said he would "dearly love" Cong ress to strike a deal that would let the Air Force acquire ne w BOEING CO. 767s as refueling planes. He seemed to signal acce ptance of a scaled-back lease proposed by the Senate Armed Serv ices Committee, alone among four congressional oversight pane ls to spurn the original plan, valued at more than $22 bill ion, to lease then buy 100 planes. "Political compromise is wh at we do when the marbles have been divided and it's to be expe cted," Rumsfeld told reporters at the Pentagon. The Senate pane l has proposed acquiring up to 100 planes by leasing 20 and buyi ng the rest -- a compromise formula designed to save bill ions. (Reu ters 04:28 PM ET 10/30/2003) More : 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 Forc e proposal to give BOEING CO. a $5.3 billion contract to main tain 100 767 refueling tankers, the latest congressional repo rt to criticize the multibillion-dollar lease proposal. Se n. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released th e Congressional Research Service report challenging the Air Forc e's assertion that Boeing is "uniquely qualified" to prov ide initial maintenance support. CRS said many other comp anies routinely serviced 767s, and Boeing was not "the only , or even the largest, organization capable of handling the main tenance needs of the 767." Air Force Secretary James Roche to ld the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing sinc e much of the 767 engineering data was proprietary. But CRS sa id much of this data could be licensed to a third party to hand le maintenance. (Reu ters 06:57 PM ET 10/28/2003) More : 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 wrot e in Message-Id: : B ad blood between the U.S. Congress and the Pentagon has taken a tol l on BOEING CO.'s multibillion-dollar drive to lease jet liners to the Air Force as refueling planes, congressional off icials and private analysts said on Friday. The Boeing issue lai d bare growing strains between Defense Secretary Donald Rum sfeld and his top lieutenants, on the one hand, and the two mos t powerful Republicans on the Senate Armed Services Com mittee, on the other. Among other things, the chill reflects piq ue at what officials on both sides of the aisle deem Rum sfeld's sometimes-dismissive approach to Congress, for ins tance on the situation in post-war Iraq. But it also ref lects perceived slights to Armed Services Committee Chairman Joh n Warner of Virginia, Congress's top overseer of the Defense Dep artment, and the panel's second-ranking Republican, John McC ain of Arizona. (Re uters 06:20 PM ET 10/24/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 === ================================================== =========== T he White House budget office discounted Thursday a key senator's req uest to "revisit" its endorsement of a multibillion-dollar A ir Force plan to lease 100 BOEING CO. 767s as refueling pla nes. The Office of Management and Budget will review Senate Com merce Committee Chairman John McCain's written request sent Wed nesday, said a spokesman. President Bush said on Sept. 16 tha t he backed the proposed lease to start replacing aging K C-135 tankers. The Air Force says the lease would give it nee ded capability sooner than it could buy outright without pin ching other combat priorities. McCain has denounced the pro posed lease, designed to lead to purchases, as a bonanza for Boe ing and a bad deal for taxpayers that does not comply with t he fiscal 2002 legislation that authorized it. (Re uters 05:00 PM ET 10/23/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 === ================================================== =========== T he Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 1 00 BOEING CO. 767 tankers, as the Senate Armed Services Com mittee continues weigh its options, including approving a sca led-down lease. The armed services panel, chaired by Vir ginia Republican Sen. John Warner, is the last of four com mittees that must approve the lease deal -- which the Air For ce says it needs to begin replacing its fleet of aging mid air refueling tankers without incurring significant upfront fun ding costs. Warner is under considerable political pressure t o approve the lease deal, but aides said the latest reports onl y underscored his concerns about the higher cost of leasing. (Re uters 06:49 PM ET 10/21/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- O n Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wro te in Message-Id: : Th e U.S. Air Force urged lawmakers to approve its plan to lease 10 0 BOEING CO. 767 refueling planes despite three new co ngressional reports poking holes in what would be the first su ch rental of a major weapons system. "The Air Force is hoping th at the Senate Armed Services Committee will approve our or iginal proposal to lease 100 tankers," said a spokeswoman, Ma jor Karen Finn. "The Air Force really needs this capability." Th e Armed Services Committee is alone among the four military ov ersight panels that has yet to approve the deal, designed to ac quire the tankers without significant upfront funding that wo uld squeeze other combat priorities. The service defended the le ase a day after the Congressional Budget Office found ta xpayers could reap $6.7 billion in savings with an outright pu rchase, which is standard procurement procedure for arms sy stems. (R euters 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 wr ote in Message-Id: : T he top Democrat on the House of Representatives' Armed Services C ommittee said he was having second thoughts on a $22.4 billion A ir Force plan to lease then buy BOEING Co. refueling planes, c iting studies that have challenged its financial soundness. "I t hink it would be useful to bring members up to date on the many r eports and studies that have emerged since our hearings on the i ssue," Rep. Ike Skelton of Missouri wrote panel chairman D uncan Hunter, R-Calif., on Wednesday. Studies by the C ongressional Budget Office, General Accounting Office, I nstitute for Defense Analyses and Congressional Research S ervice have shown that acquiring the 100 modified Boeing 767 a ircraft initially through a lease, as the Air Force hopes to d o, would cost $5.5 billion more than buying them outright. ( Reuters 12:53 PM ET 10/09/2003) M o http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- T he House of Representatives' Appropriations Committee voted to p ress ahead with a $22.4 billion proposal to lease then buy B OEING CO. 737s as Air Force refueling planes. But the move to l ease 100 modified 767s as mid-air tankers starting in 2006 -- i dentical to a Senate appropriations measure -- highlighted m isgivings about the deal among what appeared to be a growing n umber of lawmakers. The panel shot down, 33 to 28, a rival p lan, jokingly introduced by its top Democrat, David Obey of W isconsin, that would have earmarked $14 billion to start b uying the aircraft outright rather than leasing them first. " If you want to save the taxpayers money, the best way is to b uy them now," Obey said in bating colleagues to own up to the l ease's extra costs and exercise what he portrayed as fiscal r esponsibility. ( Reuters 03:16 PM ET 10/09/2003) M o http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- O n Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera w rote 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 controversial 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, congressional 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 proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman 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 inflation. 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 proposal 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 Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 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 Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators 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 negotiations with Boeing. (Reuters 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 hearing 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 testimony from witnesses before he would schedule a vote. (Reuters 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 Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 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: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $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 chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft 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. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics 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 Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 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: : 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 fjrn4vkjedt414f5o81d7 : 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 4n8e4v8av75ot2gflip9 : 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 d7d92v8q5sdkupes0o5 : 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 ifpdtuovlha5l2fbpr : 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 dvissu4135etdu8to : 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 i4disug2gpmufjvj : 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 d5panukhiq14qdr : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =============== ================================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7si : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adel phia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka : 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:8j8cjug5 ... 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, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera,
|
| Thread Tools | |
| Display Modes | |
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Boeing 747 Simulator plans - help? | Nippoo | Home Built | 9 | September 29th 04 05:19 PM |
| Boeing 747 and 727-200 vintage maintenance manuals for sale cheap | dragunov | Aviation Marketplace | 0 | June 11th 04 10:30 PM |
| Sick Boeing Joke. | plasticguy | Home Built | 0 | April 1st 04 03:16 PM |
| AOPA and ATC Privatization | Chip Jones | Instrument Flight Rules | 139 | November 12th 03 08:26 PM |
| Boeing Set For Huge Profits From Tanker Deal | ZZBunker | Military Aviation | 2 | July 4th 03 03:18 AM |
Linear Mode
