Boeing Boondoggle

"Gord Beaman" wrote in message
...
Larry Dighera wrote:

Mo

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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
refu

Y'know guys, if we each emailed Larry one copy of these posts
once a day I'll bet he'd have enough data to last himself for
awhile wouldn't he?...I'd hate for him to not have a copy in case
he needed it now...I'll send him a copy right now, poor guy....

I can't. I successfully blocked Larry on this subject some time back.
Even Outlook Express will let you make a news rule that "and"s
together in the from line with "Boeing Boondoggle"
in the subject line.

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
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================================================== ==============
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
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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
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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
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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
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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
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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
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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
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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
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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
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On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
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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
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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
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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
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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
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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
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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
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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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
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On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
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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
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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
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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
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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
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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
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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
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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
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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

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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

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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
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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
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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
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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
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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
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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
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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

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On Te, 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
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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
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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
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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
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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
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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
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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

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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
controversia l $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
fjrn4vkjedt :


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
discussio n. 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
4n8e4v8av7 :


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
approach es to defense procurement, and his office has
champion ed 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
d7d92v8q5 :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controver sial 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
Pentago n officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contrac t. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
deliver ed 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.
(Reuter s 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
ifpdtuov :


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.
Instea d, 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
executiv e 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.
(Reute rs 12:52 PM ET 11/14/2002)

Mo
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======== ================================================== ======


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4 :


BOEIN G CO. said its proposal to lease 100 aerial refueling
tanke rs would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchas e the aircraft for another $4 billion. The current
estimat e must still be scrutinized by the Pentagon's Cost
Analysi s Improvement Group, but if accurate, it could ease
conce rn 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
gotte n more clarity."
(Reuter s 03:08 PM ET 11/07/2002)

Mo
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----------------------------------------------------------------

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larr y Dighera) wrote in Message ID
i4disu :



BOEI NG CO., still negotiating with the U.S. government, hopes to
clos e a key deal to lease modified 767 jetliners as refueling
tanker s to the U.S. Air Force by year-end, a spokesman said.
The price under discussion is now $17 billion for 100 refueling
tanker s, down from the originally estimated $26 billion that
fail ed to win approval in Washington, The Wall Street Journal
report ed. Boeing, the second largest U.S. military contractor,
had hoped to close the deal long ago but has been thwarted by
concer ns 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.
(Reute rs 11:42 AM ET 11/05/2002)

More :
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
(Lar ry Dighera) wrote in Message ID
d5pan :



GENER AL 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
battl e over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unsee mly negotiating tactic, and an apparent effort to gain
advan tage during settlement talks," the company said, noting
tha t it would seek an injunction in federal court if the
settl ement talks failed to reach a result before the 30-day
deadl ine. General Dynamics, Boeing and the Navy were in intense
discu ssions this summer to settle the matter, with one proposal
calli ng for the companies to provide goods and services to the
Nav y valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reut ers 03:19 PM ET 09/03/2002)

Mor e:
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===== ================================================== =========


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larr y Dighera) wrote in Message ID
fj05 :



Offi cials 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
refu eling tankers, despite new White House criticism of the
prop osed deal. White House Budget Director Mitchell Daniels
sa id in a recent letter he would not support any proposal that
co st taxpayers more than an outright purchase. "The Air Force
an d Boeing are still in negotiations," said Air Force
spok eswoman Capt. Jessica Smith, noting the current fleet of
54 5 KC-135 tankers had an average age of 41 years. "We're
work ing to find the best deal for the taxpayers."
(Reu ters 05:53 PM ET 08/06/2002)

More :
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"
bal (W. D. Allen) wrote in Message ID
EMC :

Mor e like an Air Farce, not a Boeing, boondoggle! Can't sell something to a
cus tomer when they do not want it!! Get it right or forget it!

W DA

e nd

"La rry Dighera" wrote in message
new ...

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

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


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
0 7

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?

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

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
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================================================= ===============
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
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----------------------------------------------------------------
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
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-------------------------------------------------------------------------
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
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----------------------------------------------------------------

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
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----------------------------------------------------------------
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
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============================================== ==================

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
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----------------------------------------------------------------
BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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----------------------------------------------------------------

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

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
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=========================================== =====================
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
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----------------------------------------------------------------

On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera
wrote in Message-Id: :

Bad blood between the U.S. Congress and the Pentagon has taken a
toll on BOEING CO.'s multibillion-dollar drive to lease
jetliners to the Air Force as refueling planes, congressional
officials and private analysts said on Friday. The Boeing issue
laid bare growing strains between Defense Secretary Donald
Rumsfeld and his top lieutenants, on the one hand, and the two
most powerful Republicans on the Senate Armed Services
Committee, on the other. Among other things, the chill reflects
pique at what officials on both sides of the aisle deem
Rumsfeld's sometimes-dismissive approach to Congress, for
instance on the situation in post-war Iraq. But it also
reflects perceived slights to Armed Services Committee Chairman
John Warner of Virginia, Congress's top overseer of the Defense
Department, and the panel's second-ranking Republican, John
McCain of Arizona.
(Reuters 06:20 PM ET 10/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24

========================================== ======================


The White House budget office discounted Thursday a key senator's
request to "revisit" its endorsement of a multibillion-dollar
Air Force plan to lease 100 BOEING CO. 767s as refueling
planes. The Office of Management and Budget will review Senate
Commerce Committee Chairman John McCain's written request sent
Wednesday, said a spokesman. President Bush said on Sept. 16
that he backed the proposed lease to start replacing aging
KC-135 tankers. The Air Force says the lease would give it
needed capability sooner than it could buy outright without
pinching other combat priorities. McCain has denounced the
proposed lease, designed to lead to purchases, as a bonanza for
Boeing and a bad deal for taxpayers that does not comply with
the fiscal 2002 legislation that authorized it.
(Reuters 05:00 PM ET 10/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23

========================================== ======================


The Senate Commerce Committee plans another hearing next week on
a controversial multibillion-dollar Air Force proposal to lease
100 BOEING CO. 767 tankers, as the Senate Armed Services
Committee continues weigh its options, including approving a
scaled-down lease. The armed services panel, chaired by
Virginia Republican Sen. John Warner, is the last of four
committees that must approve the lease deal -- which the Air
Force says it needs to begin replacing its fleet of aging
midair refueling tankers without incurring significant upfront
funding costs. Warner is under considerable political pressure
to approve the lease deal, but aides said the latest reports
only underscored his concerns about the higher cost of leasing.
(Reuters 06:49 PM ET 10/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21

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

On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

========================================= =======================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

======================================= =========================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01

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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
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===================================== ===========================


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
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==================================== ============================



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
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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
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==================================== ============================


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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
correspondingl y. 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
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============== ==================================================

On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera
wrote:



Top Pentagon and White House officials on May 2 will revisit a
controversi al $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
fjrn4vkjed :


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
reporter s 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
4n8e4v8av :


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
Aldridg e said. "It's hard ... It's a major investment,"
Aldridg e 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
approache s to defense procurement, and his office has
champione d streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuter s 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
d7d92v8q :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controve rsial 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
Pentag on 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
delivere d 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.
(Reute rs 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
ifpdtuo :


BOEIN G 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
offic e in January, said Jim Albaugh, president and chief
executi ve 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.
(Reuter s 12:52 PM ET 11/14/2002)

Mo
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======= ================================================== =======


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larr y Dighera) wrote in Message ID
dvissu :


BOEI NG CO. said its proposal to lease 100 aerial refueling
tanker s would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purcha se the aircraft for another $4 billion. The current
estima te must still be scrutinized by the Pentagon's Cost
Analys is Improvement Group, but if accurate, it could ease
concer n in Congress and at the White House over the initial
pric e 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
gott en more clarity."
(Reute rs 03:08 PM ET 11/07/2002)

More :
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On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Lar ry Dighera) wrote in Message ID
i4dis :



BOEIN G CO., still negotiating with the U.S. government, hopes to
clo se a key deal to lease modified 767 jetliners as refueling
tanke rs to the U.S. Air Force by year-end, a spokesman said.
The price under discussion is now $17 billion for 100 refueling
tanke rs, down from the originally estimated $26 billion that
faile d to win approval in Washington, The Wall Street Journal
repor ted. Boeing, the second largest U.S. military contractor,
had hoped to close the deal long ago but has been thwarted by
conce rns over price and the value of buying versus leasing. At
one point, rival airplane manufacturer Airbus of Europe was
als o trying to win the deal.
(Reut ers 11:42 AM ET 11/05/2002)

Mor e:
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
(Larr y Dighera) wrote in Message ID
d5pa :



GENE RAL 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
batt le over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unse emly negotiating tactic, and an apparent effort to gain
adva ntage during settlement talks," the company said, noting
th at it would seek an injunction in federal court if the
sett lement talks failed to reach a result before the 30-day
dead line. General Dynamics, Boeing and the Navy were in intense
disc ussions this summer to settle the matter, with one proposal
call ing for the companies to provide goods and services to the
Na vy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reu ters 03:19 PM ET 09/03/2002)

More :
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==== ================================================== ==========


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Lar ry Dighera) wrote in Message ID
fj0 :



Off icials at the U.S. Air Force and aircraft manufacturer BOEING
C O. said on Tuesday they were still hammering out an agreement
t o lease 100 commercial Boeing 767s and convert them to aerial
ref ueling tankers, despite new White House criticism of the
pro posed deal. White House Budget Director Mitchell Daniels
sai d in a recent letter he would not support any proposal that
cos t taxpayers more than an outright purchase. "The Air Force
a nd Boeing are still in negotiations," said Air Force
spo keswoman Capt. Jessica Smith, noting the current fleet of
5 45 KC-135 tankers had an average age of 41 years. "We're
wor king to find the best deal for the taxpayers."
(Re uters 05:53 PM ET 08/06/2002)

Mor e:
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O n Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ba (W. D. Allen) wrote in Message ID
EM :

Mo re like an Air Farce, not a Boeing, boondoggle! Can't sell something to a
cu stomer when they do not want it!! Get it right or forget it!

WD A

en d

"L arry Dighera" wrote in message
ne ...

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

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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?

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


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
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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

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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
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================================================ ================
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
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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
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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
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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
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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
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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
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On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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
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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
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========================================== ======================
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
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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
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========================================= =======================


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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

======================================== ========================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

====================================== ==========================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
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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
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=================================== =============================



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
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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
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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
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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
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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
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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
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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
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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
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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
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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

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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

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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

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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
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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

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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
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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
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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

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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
corresponding ly. 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
controversia l $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
arrangemen t 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
complicate d 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
independen t 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
purchasin g 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
fjrn4vkje :


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
discussio n. 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
Muellne r, Boeing senior VP for Air Force systems, told defense
reporte rs in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellne r said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuter s 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
4n8e4v8a :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replac e its ageing fleet, Defense Undersecretary Edward
Aldrid ge said. "It's hard ... It's a major investment,"
Aldrid ge 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,
source s familiar with the deal have said. Aldridge, the
Pentagon 's chief weapons buyer, favors innovative and flexible
approach es to defense procurement, and his office has
champion ed streamlined acquisitions rules aimed at getting
weapon s to the services more quickly.
(Reute rs 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
d7d92v8 :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controv ersial contract to lease 100 767 commercial jets from
BOEIN G CO., sources familiar with the discussions said on
Monda y. 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
Pentago n officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contrac t. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
deliver ed 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.
(Reuter s 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
(Larr y Dighera) wrote in Message ID
ifpdtu :


BOEI NG CO. said it no longer expected to wrap up as early as next
mont h a proposed deal, valued at as much as $18 billion, to
leas e 100 aerial refueling tankers to the U.S. Air Force.
Instea d, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
offi ce in January, said Jim Albaugh, president and chief
execut ive 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.
(Reute rs 12:52 PM ET 11/14/2002)

More :
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====== ================================================== ========


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Lar ry Dighera) wrote in Message ID
dviss :


BOEIN G CO. said its proposal to lease 100 aerial refueling
tanke rs would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purch ase the aircraft for another $4 billion. The current
estim ate must still be scrutinized by the Pentagon's Cost
Analy sis Improvement Group, but if accurate, it could ease
conce rn in Congress and at the White House over the initial
pri ce tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boein g's VP for airlift and tanker programs Howard Chambers
tol d Reuters by telephone. "Over the last six months we have
gotte n more clarity."
(Reut ers 03:08 PM ET 11/07/2002)

Mor e:
http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07

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On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larr y Dighera) wrote in Message ID
i4di :



BOEI NG CO., still negotiating with the U.S. government, hopes to
clos e a key deal to lease modified 767 jetliners as refueling
tank ers to the U.S. Air Force by year-end, a spokesman said.
Th e price under discussion is now $17 billion for 100 refueling
tank ers, down from the originally estimated $26 billion that
fail ed to win approval in Washington, The Wall Street Journal
repo rted. Boeing, the second largest U.S. military contractor,
ha d hoped to close the deal long ago but has been thwarted by
conc erns over price and the value of buying versus leasing. At
on e point, rival airplane manufacturer Airbus of Europe was
al so trying to win the deal.
(Reu ters 11:42 AM ET 11/05/2002)

More :
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
(Lar ry Dighera) wrote in Message ID
d5p :



GEN ERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
C O. 30 days to pay $2.3 billion to settle an 11-year legal
bat tle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
uns eemly negotiating tactic, and an apparent effort to gain
adv antage during settlement talks," the company said, noting
tha t it would seek an injunction in federal court if the
set tlement talks failed to reach a result before the 30-day
dea dline. General Dynamics, Boeing and the Navy were in intense
dis cussions this summer to settle the matter, with one proposal
cal ling for the companies to provide goods and services to the
Nav y valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Re uters 03:19 PM ET 09/03/2002)

Mor e:
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=== ================================================== ===========


O n Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
fj :



Of ficials 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
re fueling tankers, despite new White House criticism of the
pr oposed deal. White House Budget Director Mitchell Daniels
sa id in a recent letter he would not support any proposal that
co st taxpayers more than an outright purchase. "The Air Force
an d Boeing are still in negotiations," said Air Force
sp okeswoman Capt. Jessica Smith, noting the current fleet of
54 5 KC-135 tankers had an average age of 41 years. "We're
wo rking to find the best deal for the taxpayers."
(R euters 05:53 PM ET 08/06/2002)

Mo
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On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
b (W. D. Allen) wrote in Message ID
E :

M ore like an Air Farce, not a Boeing, boondoggle! Can't sell something to a
c ustomer when they do not want it!! Get it right or forget it!

W DA

e nd

" Larry Dighera" wrote in message
n ...

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

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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
0 7

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?

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
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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
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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
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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
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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
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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

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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
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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
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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
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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
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============================================ ====================

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
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BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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

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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
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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
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======================================== ========================


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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

======================================= =========================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
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===================================== ===========================

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

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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
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================================== ==============================



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
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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
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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
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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
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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
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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
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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
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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
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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
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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 Budge. 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
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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
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======================== ========================================

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
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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
congressiona l 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
multibillio n 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
negotiation s 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
correspondin gly. 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
controversi al $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
arrangeme nt 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
complicat ed 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
independe nt 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
purchasi ng 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.
(Reuter s 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
fjrn4vkj :


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
discussi on. 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
certai n we'll have closure on it in the next two weeks," George
Muellner , Boeing senior VP for Air Force systems, told defense
reporter s in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muelln er said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reute rs 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
4n8e4v8 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
repla ce its ageing fleet, Defense Undersecretary Edward
Aldridg e said. "It's hard ... It's a major investment,"
Aldridg e 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,
sourc es familiar with the deal have said. Aldridge, the
Pentago n's chief weapons buyer, favors innovative and flexible
approac hes to defense procurement, and his office has
champio ned streamlined acquisitions rules aimed at getting
weapo ns to the services more quickly.
(Reuter s 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
(Larr y Dighera) wrote in Message ID
d7d92v :


The U.S. Air Force hopes to win approval in Q1 2003 for a
contro versial contract to lease 100 767 commercial jets from
BOEI NG 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
work s for over a year and still requires approval by top
Pentag on officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contra ct. The deal now under discussion would give the Air
Forc e 11 to 12 new tankers in 2006, with all 100 to be
delive red by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
leas e, according to sources familiar with the deal.
(Reute rs 06:22 PM ET 01/13/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
ifpdt :


BOEIN G CO. said it no longer expected to wrap up as early as next
mon th a proposed deal, valued at as much as $18 billion, to
lea se 100 aerial refueling tankers to the U.S. Air Force.
Inste ad, it may take until early next year to reach agreement
wit h the Air Force, partly because of a new Congress taking
offic e in January, said Jim Albaugh, president and chief
execu tive 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.
(Reut ers 12:52 PM ET 11/14/2002)

Mor e:
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
(Larr y Dighera) wrote in Message ID
dvis :


BOEI NG CO. said its proposal to lease 100 aerial refueling
tank ers would cost the U.S. Air Force about $17 billion, some
$1 0 billion less than previously estimated, with an option to
purc hase the aircraft for another $4 billion. The current
esti mate must still be scrutinized by the Pentagon's Cost
Anal ysis Improvement Group, but if accurate, it could ease
conc ern in Congress and at the White House over the initial
pric e tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boei ng's VP for airlift and tanker programs Howard Chambers
to ld Reuters by telephone. "Over the last six months we have
gott en more clarity."
(Reu ters 03:08 PM ET 11/07/2002)

More :
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
(Lar ry Dighera) wrote in Message ID
i4d :



BOE ING CO., still negotiating with the U.S. government, hopes to
clo se a key deal to lease modified 767 jetliners as refueling
tan kers to the U.S. Air Force by year-end, a spokesman said.
T he price under discussion is now $17 billion for 100 refueling
tan kers, down from the originally estimated $26 billion that
fai led to win approval in Washington, The Wall Street Journal
rep orted. Boeing, the second largest U.S. military contractor,
h ad hoped to close the deal long ago but has been thwarted by
con cerns over price and the value of buying versus leasing. At
o ne point, rival airplane manufacturer Airbus of Europe was
als o trying to win the deal.
(Re uters 11:42 AM ET 11/05/2002)

Mor e:
http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05




O n Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
d5 :



GE NERAL 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
ba ttle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
un seemly negotiating tactic, and an apparent effort to gain
ad vantage during settlement talks," the company said, noting
th at it would seek an injunction in federal court if the
se ttlement talks failed to reach a result before the 30-day
de adline. General Dynamics, Boeing and the Navy were in intense
di scussions this summer to settle the matter, with one proposal
ca lling for the companies to provide goods and services to the
Na vy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(R euters 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
(L arry Dighera) wrote in Message ID
f :



O fficials at the U.S. Air Force and aircraft manufacturer BOEING
C O. said on Tuesday they were still hammering out an agreement
t o lease 100 commercial Boeing 767s and convert them to aerial
r efueling tankers, despite new White House criticism of the
p roposed deal. White House Budget Director Mitchell Daniels
s aid in a recent letter he would not support any proposal that
c ost taxpayers more than an outright purchase. "The Air Force
a nd Boeing are still in negotiations," said Air Force
s pokeswoman Capt. Jessica Smith, noting the current fleet of
5 45 KC-135 tankers had an average age of 41 years. "We're
w orking to find the best deal for the taxpayers."
( Reuters 05:53 PM ET 08/06/2002)

M o
http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06

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

O n Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
:

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
...

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
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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?

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

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


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
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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
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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
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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
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============================================== ==================
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
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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
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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

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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
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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
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BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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

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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
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======================================== ========================
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
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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
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======================================= =========================


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
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======================================= =========================


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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

====================================== ==========================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

==================================== ============================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
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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
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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
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================================= ===============================


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
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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
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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
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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
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============================= ===================================


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
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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
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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
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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
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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
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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
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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
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======================= =========================================

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
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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
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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
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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
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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
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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
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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
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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
congression al 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
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On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera
wrote:



Pentagon lawyers are taking a final look at a proposed
multibilli on 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
negotiatio ns 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
negotiate d 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
correspondi ngly. 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
controvers ial $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
arrangemen t 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
complicate d 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
independen t watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
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========== ================================================== ====

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
purchasin g 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.
(Reuter s 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:


Defens e 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
source s 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
approv e or reject the deal at Monday's meeting, although
source s 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
servic e companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reute rs 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
fjrn4vk :


BOEIN G 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
discuss ion. 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
certa in we'll have closure on it in the next two weeks," George
Muellne r, Boeing senior VP for Air Force systems, told defense
reporte rs in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellne r said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuter s 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
(Larr y Dighera) wrote in Message ID
4n8e4v :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replac e its ageing fleet, Defense Undersecretary Edward
Aldrid ge said. "It's hard ... It's a major investment,"
Aldrid ge said of the controversial $17 billion deal, which
woul d 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,
source s familiar with the deal have said. Aldridge, the
Pentag on's chief weapons buyer, favors innovative and flexible
approa ches to defense procurement, and his office has
champi oned streamlined acquisitions rules aimed at getting
weapon s to the services more quickly.
(Reute rs 03:42 PM ET 02/07/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
d7d92 :


The U.S. Air Force hopes to win approval in Q1 2003 for a
contr oversial contract to lease 100 767 commercial jets from
BOEIN G CO., sources familiar with the discussions said on
Monda y. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
wor ks for over a year and still requires approval by top
Penta gon officials and U.S. lawmakers, who raised questions
las t year about the costs of an earlier version of the
contr act. The deal now under discussion would give the Air
For ce 11 to 12 new tankers in 2006, with all 100 to be
deliv ered by 2011. For an additional $4 billion, the Air Force
wil l be able to purchase the jets outright at the end of the
lease , according to sources familiar with the deal.
(Reut ers 06:22 PM ET 01/13/2003)

Mor e:
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
(Larr y Dighera) wrote in Message ID
ifpd :


BOEI NG CO. said it no longer expected to wrap up as early as next
mont h a proposed deal, valued at as much as $18 billion, to
leas e 100 aerial refueling tankers to the U.S. Air Force.
Inst ead, it may take until early next year to reach agreement
wi th the Air Force, partly because of a new Congress taking
offi ce in January, said Jim Albaugh, president and chief
exec utive 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.
(Reu ters 12:52 PM ET 11/14/2002)

More :
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
(Lar ry Dighera) wrote in Message ID
dvi :


BOE ING CO. said its proposal to lease 100 aerial refueling
tan kers would cost the U.S. Air Force about $17 billion, some
$ 10 billion less than previously estimated, with an option to
pur chase the aircraft for another $4 billion. The current
est imate must still be scrutinized by the Pentagon's Cost
Ana lysis Improvement Group, but if accurate, it could ease
con cern in Congress and at the White House over the initial
pri ce tag of $26 billion to $28 billion. "It will turn out to
b e more like the $17 to $18 billion we are talking about,"
Boe ing's VP for airlift and tanker programs Howard Chambers
tol d Reuters by telephone. "Over the last six months we have
got ten more clarity."
(Re uters 03:08 PM ET 11/07/2002)

Mor e:
http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07

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

O n Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
i4 :



BO EING CO., still negotiating with the U.S. government, hopes to
cl ose a key deal to lease modified 767 jetliners as refueling
ta nkers to the U.S. Air Force by year-end, a spokesman said.
Th e price under discussion is now $17 billion for 100 refueling
ta nkers, down from the originally estimated $26 billion that
fa iled to win approval in Washington, The Wall Street Journal
re ported. Boeing, the second largest U.S. military contractor,
ha d hoped to close the deal long ago but has been thwarted by
co ncerns over price and the value of buying versus leasing. At
on e point, rival airplane manufacturer Airbus of Europe was
al so trying to win the deal.
(R euters 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
(L arry Dighera) wrote in Message ID
d :



G ENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
C O. 30 days to pay $2.3 billion to settle an 11-year legal
b attle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
u nseemly negotiating tactic, and an apparent effort to gain
a dvantage during settlement talks," the company said, noting
t hat it would seek an injunction in federal court if the
s ettlement talks failed to reach a result before the 30-day
d eadline. General Dynamics, Boeing and the Navy were in intense
d iscussions this summer to settle the matter, with one proposal
c alling for the companies to provide goods and services to the
N avy 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)

M o
http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03

= ================================================== =============


O n Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
( Larry Dighera) wrote in Message ID
:



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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
:

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
...

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

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


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?

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
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================================================== ==============

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
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================================================= ===============

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


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


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


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


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


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
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----------------------------------------------------------------
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
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-------------------------------------------------------------------------
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
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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
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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
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========================================== ======================

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
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BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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
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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
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======================================= =========================
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
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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
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====================================== ==========================


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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

===================================== ===========================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
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=================================== =============================

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
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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
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================================= ===============================


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
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================================ ================================



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

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



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


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
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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
congressiona l 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
multibillio n 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
negotiation s 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
negotiat ed the deal with the air force, said each aircraft was
projecte d 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
correspond ingly. 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
controver sial $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
arrangeme nt 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
complicat ed 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
independe nt watchdog agencies.
(Reuter s 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.
Defens e Secretary Donald Rumsfeld sought information on
purchasi ng 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
ordere d, 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.
(Reute rs 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:


Defen se 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
sourc es 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
Boein g deal, are due to brief Rumsfeld. He was not expected to
appro ve or reject the deal at Monday's meeting, although
sourc es 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
servi ce companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuter s 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
(Larr y Dighera) wrote in Message ID
fjrn4v :


BOEI NG 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
discus sion. 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
certai n we'll have closure on it in the next two weeks," George
Muelln er, Boeing senior VP for Air Force systems, told defense
report ers in London. "We've had dialogue with three or four
othe r countries, other than Italy and Japan," Muellner said.
Muelln er said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reute rs 01:55 PM ET 01/29/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
4n8e4 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
repla ce its ageing fleet, Defense Undersecretary Edward
Aldri dge said. "It's hard ... It's a major investment,"
Aldri dge said of the controversial $17 billion deal, which
wou ld 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,
sourc es familiar with the deal have said. Aldridge, the
Penta gon's chief weapons buyer, favors innovative and flexible
appro aches to defense procurement, and his office has
champ ioned streamlined acquisitions rules aimed at getting
weapo ns to the services more quickly.
(Reut ers 03:42 PM ET 02/07/2003)

Mor e:
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
(Larr y Dighera) wrote in Message ID
d7d9 :


Th e U.S. Air Force hopes to win approval in Q1 2003 for a
cont roversial contract to lease 100 767 commercial jets from
BOEI NG CO., sources familiar with the discussions said on
Mond ay. The $17 billion lease contract - aimed at replacing the
Ai r Force's aging fleet of KC-135 tankers -- has been in the
work s for over a year and still requires approval by top
Pent agon officials and U.S. lawmakers, who raised questions
la st year about the costs of an earlier version of the
cont ract. The deal now under discussion would give the Air
Forc e 11 to 12 new tankers in 2006, with all 100 to be
deli vered by 2011. For an additional $4 billion, the Air Force
wi ll be able to purchase the jets outright at the end of the
leas e, according to sources familiar with the deal.
(Reu ters 06:22 PM ET 01/13/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
ifp :


BOE ING CO. said it no longer expected to wrap up as early as next
mon th a proposed deal, valued at as much as $18 billion, to
lea se 100 aerial refueling tankers to the U.S. Air Force.
Ins tead, it may take until early next year to reach agreement
wit h the Air Force, partly because of a new Congress taking
off ice in January, said Jim Albaugh, president and chief
exe cutive of Boeing's Integrated Defense Systems unit. "We're
i n final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Re uters 12:52 PM ET 11/14/2002)

Mor e:
http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14

=== ================================================== ===========


O n Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
dv :


BO EING CO. said its proposal to lease 100 aerial refueling
ta nkers would cost the U.S. Air Force about $17 billion, some
$1 0 billion less than previously estimated, with an option to
pu rchase the aircraft for another $4 billion. The current
es timate must still be scrutinized by the Pentagon's Cost
An alysis Improvement Group, but if accurate, it could ease
co ncern in Congress and at the White House over the initial
pr ice tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Bo eing's VP for airlift and tanker programs Howard Chambers
to ld Reuters by telephone. "Over the last six months we have
go tten more clarity."
(R euters 03:08 PM ET 11/07/2002)

Mo
http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07

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On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(L arry Dighera) wrote in Message ID
i :



B OEING CO., still negotiating with the U.S. government, hopes to
c lose a key deal to lease modified 767 jetliners as refueling
t ankers to the U.S. Air Force by year-end, a spokesman said.
T he price under discussion is now $17 billion for 100 refueling
t ankers, down from the originally estimated $26 billion that
f ailed to win approval in Washington, The Wall Street Journal
r eported. Boeing, the second largest U.S. military contractor,
h ad hoped to close the deal long ago but has been thwarted by
c oncerns over price and the value of buying versus leasing. At
o ne point, rival airplane manufacturer Airbus of Europe was
a lso trying to win the deal.
( Reuters 11:42 AM ET 11/05/2002)

M o
http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05




O n Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
( Larry Dighera) wrote in Message ID
:



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
:



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
:

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
...

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?

BOEING CO., beset by an ethics scandal that triggered an
extensive government review of its huge military business, is
working hard to convince U.S. officials it is not made up of "a
bunch of crooks," its top official said. Chief Executive Harry
Stonecipher, who took over for scandal-plagued Phil Condit last
month, has been roaming the halls of the Pentagon and on Capitol
Hill to buff up Boeing's tarnished image. Stonecipher has met
with Boeing's toughest critic, Arizona Republican Sen. John
McCain, and plans to meet him again soon to discuss an $18
billion air refueling tanker deal stalled over price concerns
and a conflict of interest scandal involving a former Air Force
official.
(Reuters 01:07 PM ET 01/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29

================================================== ==============
U.S. senators, disgruntled by the Pentagon's continuing refusal
to hand over documents on a plan to lease BOEING CO. 767s, are
discussing ways to get the documents, including a possible
subpoena, Senate aides said. One option might be to link the
nominations of two key Pentagon officials to disclosure of the
documents, or the Senate Armed Services Committee could
subpoena the documents, the aides said. On Nov. 12, the Senate
approved an Air Force lease of 20 767s as midair tankers and
the purchase of up to 80 others -- a deal projected by the
Pentagon to cost $27.6 billion through 2017 -- $5 billion less
than a lease of all 100 tankers. But the Pentagon has put the
deal on hold, pending a probe by its inspector general into
possible improprieties.
(Reuters 07:16 PM ET 01/27/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27

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

On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera
wrote in Message-Id: :

Britain is set to award a 13 billion pound ($24 billion) military
plane contract to a consortium led by Airbus parent EADS in a
blow to rival BOEING CO., an industry source said. Europe's
largest order for planes that refuel military jets would be a
big win for Airbus -- which would supply civilian planes to be
converted into air tankers -- and crack open a sector where
Boeing has long held a near-monopoly. Some analysts have said
bidding is too close to call. Both sides have offered about 20
planes. The EADS bid includes Britain's ROLLS-ROYCE and
France's THALES. Boeing is grouped with services firm Serco and
the UK's biggest defence firm, BAE. EADS declined comment until
the Ministry of Defence announces its decision. "We simply
haven't been told officially or unofficially," said Serco's
head of media Kevin Johnson.
(Reuters 06:44 AM ET 01/23/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23

================================================= ===============

On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera
wrote in Message-Id: :

Defense Secretary Donald Rumsfeld has ordered the Pentagon's
in-house watchdog to expand its investigation into the BOEING
CO. tanker deal to see if a former Air Force acquisition
official's job search affected other contracts, officials said
on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim
Haynes, the chief ethics officer, to review rules aimed at
preventing abuses when top officials seek jobs in the defense
industry after they leave the government, a Pentagon
spokeswoman said. Pentagon Inspector General Joseph Schmitz
first launched a criminal investigation in September into a
multibillion-dollar Air Force plan to lease 100 Boeing 767s as
refueling tankers. The probe initially focused on whether
former Air Force acquisitions official Darleen Druyun
improperly gave Boeing, her future employer, access to a
rival's proprietary data.
(Reuters 05:49 PM ET 01/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20

================================================ ================

On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's top financial officer said he saw no point in
budgeting for BOEING CO. tanker aircraft while plans for the
multibillion acquisition remained under in-house investigation
for possible contracting abuses. In another potential blow to
Boeing's hopes to revive the deal quickly and breathe new life
into its 767 aircraft production line, Dov Zakheim, the Defense
Department's comptroller, declined to suggest it should be
treated separately from a review of other Boeing-related
contracts now being called into question. The Pentagon put
tanker negotiations on hold on Dec. 1 for an audit of whether
they had been tainted by improper contacts between Boeing and
Darleen Druyun, who served as the Air Force's lead negotiator
on the deal before joining the company in January.
(Reuters 01:00 PM ET 12/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17

=============================================== =================


On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera
wrote in Message-Id: :


U.S. prosecutors have started a new criminal investigation
involving aircraft maker BOEING CO., The Wall Street Journal
reported. The probe focuses on dealings between Boeing's former
CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive
who served as a high-ranking Pentagon official before joining
the company, the paper said, citing industry and government
officials. Boeing officials could not be reached for comment
early on Friday. The investigation is led by the U.S.
Attorney's office in Northern Virginia with help from the
Defense Department's Criminal Investigative Service, the report
said. It focuses on contacts starting early in the fall of 2002
about a possible job for Druyun at Boeing -- at a time when she
still worked for the government. That was nearly 2 months before
she recused herself from all decisions regarding the company,
the report said, citing the officials.
(Reuters 03:10 AM ET 12/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12

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


BOEING CO. said it was cooperating with investigators amid
reports of a new federal criminal probe that could complicate
relations with its biggest client, the U.S. government. "The
company has been cooperating and will continue to cooperate
with investigators," said Kenneth Mercer, a spokesman at Boeing
headquarters in Chicago. He declined to elaborate. Earlier in
the day, The Wall Street Journal cited industry and government
officials as saying prosecutors were focusing on Boeing's fired
chief financial officer, Michael Sears, and Darleen Druyun, who
served as the Air Force's No. 2 acquisition official before
joining the company in January.
(Reuters 11:41 AM ET 12/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12

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


Air Force Secretary James Roche has asked the Pentagon's
inspector general to expand an investigation of an $18 billion
deal for 100 BOEING CO. 767 tankers to include other major
contracts, the Air Force said on Tuesday. Defense analysts,
congressional aides and industry sources said the move marked
increasing concern about awards won by the nation's second
largest defense contractor in the wake of an ethics scandal
that has already spawned a criminal investigation and a major
management shakeup. But they said the scandal would have
consequences for all U.S. defense firms, including tighter
scrutiny of contracts and a major congressional review of rules
governing the so-called "revolving door" between industry and
military officials.
(Reuters 05:52 PM ET 12/09/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09

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


Pentagon adviser Richard Perle came under fire on Friday for
failing to disclose financial ties to BOEING CO., even while
championing its bid for a controversial $20 billion-plus
defense contract. Perle co-wrote a guest column in The Wall
Street Journal newspaper this summer praising the plan to lease
then buy 100 modified refueling planes, a year after Boeing
committed to invest up to $20 million in Trireme Partners, a
New York venture capital fund in which Perle is a principal.
Perle's role adds to the ethical questions dogging the tanker
deal, placed on hold by the Pentagon this week for an audit of
suspected contracting improprieties that contributed to the
resignation on Monday of Boeing's chief executive.
(Reuters 05:38 PM ET 12/05/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05


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


The Air Force's top acquisitions official urged the quick signing
of a $20 billion contract with BOEING CO. even after Defense
Secretary Donald Rumsfeld expressed concern about
improprieties, the New York Times reported on Saturday. Citing
internal email messages, the Times report said that Dr. Marvin
Sambur, the acquisitions official, several months earlier had
also forwarded to top Boeing executives copies of internal
Pentagon communications outlining the negotiating strategy for
the contract to lease and then buy 100 modified refueling
planes. Those messages were sent in April and May, the Times
said, before Boeing and the Pentagon had reached an agreement
on the controversial tanker-leasing deal.
(Reuters 01:47 AM ET 12/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06

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


BOEING said on Saturday it was confident a controversial $20
billion-plus defense contract with the U.S. Air Force would go
ahead despite a pause in negotiations ordered by the Pentagon.
"We're confident that there's going to be a U.S. Air Force 767
program," Mark Kronenberg, VP, International Business
Development for the Middle East, Africa and the Americas, told
Reuters. "Obviously right now it's under review. OSD (Office of
Secretary of Defense) is looking at it. Air Force is looking at
it and we're cooperating with both fully," Kronenberg said. The
New York Times reported on Saturday that the U.S. Air Force's
top acquisitions official urged the quick signing of the
contract with Boeing even after Defense Secretary Donald
Rumsfeld expressed concern about improprieties.
(Reuters 07:34 AM ET 12/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06

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


On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon has told Congress it will postpone any action on $18
billion contracts for 100 BOEING CO. 767 tankers until the deal
is investigated following Boeing's firing of two officials for
ethical violations, Defense Department officials said on
Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders
of the Senate Armed Service Committee in a letter dated Dec. 1
that he was ordering a "pause in the execution" of the Air
Force contracts to lease and buy the mid-air refueling tankers.
Wolfowitz said his decision was prompted by Boeing's firing last
week of Chief Financial Officer Michael Sears for discussing a
possible job with former Air Force official Darleen Druyun --
the lead player on the lease deal -- before she recused herself
from overseeing Boeing business.
(Reuters 12:37 PM ET 12/02/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02

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

On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera
wrote in Message-Id: :

Michael Sears, fired from his position as BOEING CO.'s CFO
earlier this week, said he did not believe his conduct in
hiring a former Air Force official violated company policy. "At
no time did I engage in conduct which I believed to be in
violation of any company policy," Sears said in a statement
issued through his lawyers at the firm Cotsirilos, Tighe &
Streicker. "At all times, I have faithfully carried out my
duties on behalf of Boeing to the best of my ability. I am
deeply disappointed by the action the company took (Monday)."
Boeing fired Sears for talking with Darleen Druyun about future
employment while she was still acting in her government role as
a procurement officer for the Air Force. Druyun, on her job at
Boeing as a missile defense official in Washington, D.C., for
less than a year, was also dismissed.
(Reuters 10:01 AM ET 11/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26

============================================ ====================
BOEING CO. Chairman and Chief Executive Phil Condit resigned
under pressure, following an ethics scandal and other corporate
missteps that have hurt business prospects. Harry Stonecipher,
who retired last year, was named president and CEO of the
world's largest aerospace company. Considered by many a shrewd
and hard-nosed leader, Stonecipher was formerly Boeing's vice
chairman after running McDonnell Douglas, with which Boeing
merged in 1997. "Boeing is advancing on several of the most
important programs in its history and I offered my resignation
as a way to put the distractions and controversies of the past
year behind us, and to place the focus on our performance,"
Condit said in a statement. "They needed to send the very
strongest signal they could to Congress, DoD (U.S. Department
of Defense), investors," said Richard Aboulafia at Teal Group.
"This is an (extension) of recent issues that have plagued
Boeing," said Marcy Yeamans, analyst for Banc One Investment
Advisors. "Given the issues at the company, it shouldn't have
been a total surprise."
(Reuters 11:27 AM ET 12/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01

----------------------------------------------------------------
Boeing Co (BA) (38.02 -0.37)

BOEING CO.'s new chief executive, Harry Stonecipher, said
corporate turmoil and ethics problems would not upset
multibillion-dollar deals for U.S. Air Force refueling tankers
and Future Combat Systems, a high-tech warfare program. "I
don't think either one of them will be scrapped. That's my
personal opinion," Stonecipher told reporters on a
teleconference. "The need for tankers is still there. It's a
critical need."
(Reuters 11:31 AM ET 12/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01

EADS said it had no plans to pursue legal proceedings against
rival BOEING in light of claims the U.S. firm gained access to
details of its tender for a U.S. air tanker contract. "We are
not contemplating any legal action," an EADS spokesman in
Munich said in response to queries. Earlier, Britain's Times
newspaper quoted an unnamed EADS official in the United States
as saying the company was looking into its legal options in the
tanker case. The case centers around a $22.4 billion proposal by
the U.S. Air Force to lease and then buy Boeing 767 aircraft as
refueling tankers. The Pentagon's in-house watchdog launched an
inquiry into the Boeing tanker deal months ago, examining
whether former Air Force procurement official Darleen Druyun
improperly shared with Boeing details of a rival bid by EADS,
the parent of commercial jet maker Airbus.
(Reuters 07:40 AM ET 11/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26

-------------------------------------------------------------------------
U.S. Defense Secretary Donald Rumsfeld said he had directed the
Pentagon's senior staff to consider whether to delay signing a
contract with BOEING CO. to lease Boeing 767 refueling tankers
following the aerospace company's firing of two officials.
"We're the custodians of the taxpayers' dollars. We have an
obligation to see that things are done properly," Rumsfeld told
a Pentagon briefing. President George W. Bush signed into law on
Monday a $401.3 billion defense spending bill that paved the way
for the Air Force to lease 20 tankers initially and purchase 80
more in the future, but details remain to be resolved. Rumsfeld
was asked during the briefing whether the signing of the tanker
lease contract should be delayed until the Pentagon reviews
whether the acquisition process was tainted by Boeing.
(Reuters 04:31 PM ET 11/25/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25


On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO.'s firing of two officials for unethical conduct is the
latest twist in a 2-year saga that has already substantially
changed a multibillion-dollar Pentagon plan to lease Boeing 767
refueling tankers and could stall the deal further. President
George W. Bush on Monday signed into law a $401.3 billion
defense spending bill that clears the way for the Air Force to
lease 20 tankers and buy 80 more in the future, but it is still
working out the details with Boeing. The Air Force on Monday
said it deplored ethical violations and was considering
requesting a separate investigation by the Pentagon's inspector
general, who launched a formal probe into improprieties in the
tanker deal months ago.
(Reuters 04:21 PM ET 11/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24

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

On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera
wrote in Message-Id: :

Senate Armed Services Committee member John McCain moved on
Thursday to force disclosure of Pentagon records on a
multibillion-dollar plan to acquire 100 BOEING CO. 767s as
refueling planes. In a letter to committee chairman John
Warner, McCain linked his quest to the fate of Michael Wynne,
President Bush's choice to be the Pentagon's new chief weapons
buyer. "I respectfully suggest that the Defense Department"
produce records sought for oversight of the Boeing deal "as the
committee prepares to consider Mr. Wynne's nomination," McCain
wrote. At a confirmation hearing for Wynne on Tuesday, Warner,
a Virginia Republican; Carl Levin of Michigan, the panel's top
Democrat; and McCain, an Arizona Republican, voiced concern
over Deputy Defense Secretary Paul Wolfowitz's refusal to hand
over documents at issue.
(Reuters 08:26 PM ET 11/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20

----------------------------------------------------------------
On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera
wrote in Message-Id: :


The Air Force plans to fund from its own budget the full
multibillion-dollar acquisition of 100 modified BOEING CO.
refueling planes and not ask any of the other armed services to
chip in, the Air Force's top military officer said. Gen. John
Jumper, the chief of staff, said he had no plans to lean on the
Army, Navy and Marine Corps -- a possibility the General
Accounting Office, Congress's investigative and audit arm, had
cited unnamed Air Force officials as raising. Among systems
that could be set back, other Air Force officials have said,
are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the
F-35 Joint Strike Fighter. The Senate gave the Air Force final
congressional approval Wednesday to lease 20 modified 767s as
tankers and buy up to 80 others -- a deal projected by the
Pentagon to cost $27.6 billion through fiscal 2017.
(Reuters 04:44 PM ET 11/13/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13

========================================= =======================

Key senators on Wednesday warned the U.S. Defense Department to
limit its order of BOEING CO. jetliners to the number
authorized under a law that funds the replacement of Air Force
refueling tankers. Senate Armed Services Committee Chairman
John Warner, a Virginia Republican, made the point as the
Senate gave final approval to the tanker acquisition under
which the Air Force would lease 20 and buy up to 80 aircraft
used to fuel warplanes in midair. At issue could be billions of
dollars in potential savings to taxpayers. Originally, the Air
Force had sought to acquire all 100 modified 767s through
leases, with options to buy at the end of the planned 6-year
lease term. Some lawmakers opposed that plan, calling it too
expensive.
(Reuters 07:24 PM ET 11/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12

----------------------------------------------------------------
BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06

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

The White House said a deal is needed quickly that would let the
Air Force acquire new BOEING 767s as refueling planes. "There's
an urgent need to make this happen sooner rather than later,"
White House spokesman Scott McClellan said as congressional
negotiations continue over an original proposal to lease and
then buy 100 planes.
(Reuters 10:17 AM ET 11/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06

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

On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera
wrote in Message-Id: :


Defense Secretary Donald Rumsfeld said he would "dearly love"
Congress to strike a deal that would let the Air Force acquire
new BOEING CO. 767s as refueling planes. He seemed to signal
acceptance of a scaled-back lease proposed by the Senate Armed
Services Committee, alone among four congressional oversight
panels to spurn the original plan, valued at more than $22
billion, to lease then buy 100 planes. "Political compromise is
what we do when the marbles have been divided and it's to be
expected," Rumsfeld told reporters at the Pentagon. The Senate
panel has proposed acquiring up to 100 planes by leasing 20 and
buying the rest -- a compromise formula designed to save
billions.
(Reuters 04:28 PM ET 10/30/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30

====================================== ==========================
A study released on Tuesday raises questions about a U.S. Air
Force proposal to give BOEING CO. a $5.3 billion contract to
maintain 100 767 refueling tankers, the latest congressional
report to criticize the multibillion-dollar lease proposal.
Sen. John McCain, chairman of the Senate Commerce Committee and
a vocal critic of the $24.3 billion lease and buy deal, released
the Congressional Research Service report challenging the Air
Force's assertion that Boeing is "uniquely qualified" to
provide initial maintenance support. CRS said many other
companies routinely serviced 767s, and Boeing was not "the
only, or even the largest, organization capable of handling the
maintenance needs of the 767." Air Force Secretary James Roche
told the Senate Armed Services Committee in a letter dated Oct.
9 that it made sense to give the maintenance contract to Boeing
since much of the 767 engineering data was proprietary. But CRS
said much of this data could be licensed to a third party to
handle maintenance.
(Reuters 06:57 PM ET 10/28/2003)

Mo
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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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

==================================== ============================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

================================== ==============================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01

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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
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=============================== =================================



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
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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
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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
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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
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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
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=========================== =====================================


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



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

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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

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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

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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
multibillio n-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

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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
congression al 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
Washingto n 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
reportedl y 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
multibilli on Air Force lease of 100 BOEING CO. 767 jets as
refuelin g tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiatio ns warned the deal -- which critics blast as a
corporat e 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
propose d $17 billion lease. John Sams, the Boeing official who
negotiate d the deal with the air force, said each aircraft was
project ed 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
correspon dingly. Under a tentative deal awaiting U.S. Defense
Departmen t'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 .
(Reuter s 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
controve rsial $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
arrangem ent 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
complica ted 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
independ ent watchdog agencies.
(Reute rs 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:


BOEIN G 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.
Defen se Secretary Donald Rumsfeld sought information on
purchas ing 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.
(Reuter s 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 :


Defens e Secretary Donald Rumsfeld is to review a $21 billion Air
Forc e plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
source s familiar with the deal. Defense Undersecretary Edward
"Pet e" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boei ng deal, are due to brief Rumsfeld. He was not expected to
approv e or reject the deal at Monday's meeting, although
source s 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
servic e's fleet of 40-year-old KC-135 tankers. Financial
servic e companies would set up a "special purpose entity" to
floa t bonds to buy the tankers from Boeing, and lease them to
the military.
(Reute rs 05:33 PM ET 03/07/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
fjrn4 :


BOEIN G CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
sai d, adding that sales to the UK and others were also under
discu ssion. 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
certa in we'll have closure on it in the next two weeks," George
Muell ner, Boeing senior VP for Air Force systems, told defense
repor ters in London. "We've had dialogue with three or four
oth er countries, other than Italy and Japan," Muellner said.
Muell ner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
las t month.
(Reut ers 01:55 PM ET 01/29/2003)

Mor e:
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
(Larr y Dighera) wrote in Message ID
4n8e :


To p Pentagon officials aim to decide next week whether to allow
th e Air Force to lease 100 modified 767 BOEING CO. tankers to
repl ace its ageing fleet, Defense Undersecretary Edward
Aldr idge said. "It's hard ... It's a major investment,"
Aldr idge said of the controversial $17 billion deal, which
woul d give the Air Force up to 12 new tankers in 2006 and all
10 0 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sour ces familiar with the deal have said. Aldridge, the
Pent agon's chief weapons buyer, favors innovative and flexible
appr oaches to defense procurement, and his office has
cham pioned streamlined acquisitions rules aimed at getting
weap ons to the services more quickly.
(Reu ters 03:42 PM ET 02/07/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
d7d :


T he U.S. Air Force hopes to win approval in Q1 2003 for a
con troversial contract to lease 100 767 commercial jets from
BOE ING CO., sources familiar with the discussions said on
Mon day. The $17 billion lease contract - aimed at replacing the
A ir Force's aging fleet of KC-135 tankers -- has been in the
wor ks for over a year and still requires approval by top
Pen tagon officials and U.S. lawmakers, who raised questions
las t year about the costs of an earlier version of the
con tract. The deal now under discussion would give the Air
For ce 11 to 12 new tankers in 2006, with all 100 to be
del ivered by 2011. For an additional $4 billion, the Air Force
wil l be able to purchase the jets outright at the end of the
lea se, according to sources familiar with the deal.
(Re uters 06:22 PM ET 01/13/2003)

Mor e:
http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13

----------

O n Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
if :


BO EING CO. said it no longer expected to wrap up as early as next
mo nth a proposed deal, valued at as much as $18 billion, to
le ase 100 aerial refueling tankers to the U.S. Air Force.
In stead, it may take until early next year to reach agreement
wi th the Air Force, partly because of a new Congress taking
of fice in January, said Jim Albaugh, president and chief
ex ecutive 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.
(R euters 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
(L arry Dighera) wrote in Message ID
d :


B OEING CO. said its proposal to lease 100 aerial refueling
t ankers would cost the U.S. Air Force about $17 billion, some
$ 10 billion less than previously estimated, with an option to
p urchase the aircraft for another $4 billion. The current
e stimate must still be scrutinized by the Pentagon's Cost
A nalysis Improvement Group, but if accurate, it could ease
c oncern in Congress and at the White House over the initial
p rice tag of $26 billion to $28 billion. "It will turn out to
b e more like the $17 to $18 billion we are talking about,"
B oeing's VP for airlift and tanker programs Howard Chambers
t old Reuters by telephone. "Over the last six months we have
g otten more clarity."
( Reuters 03:08 PM ET 11/07/2002)

M o
http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07

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

O n Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
( Larry Dighera) wrote in Message ID
:



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
:



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
:



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
:

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
...

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
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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?

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
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================================================= ===============
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
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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
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=============================================== =================

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
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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
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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
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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
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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
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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
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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
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=========================================== =====================
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
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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
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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
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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
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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
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BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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
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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
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===================================== ===========================
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
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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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

=================================== =============================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

================================= ===============================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01

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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
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=============================== =================================


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
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============================== ==================================



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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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==================== ============================================

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
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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
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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
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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
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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
multibilli on-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
spokeswoma n, 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
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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
endorsin g a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressio nal 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
Washingt on 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
tentativ e 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
reported ly 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:



Pentago n lawyers are taking a final look at a proposed
multibill ion Air Force lease of 100 BOEING CO. 767 jets as
refueli ng tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiati ons warned the deal -- which critics blast as a
corpora te 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
origina l 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.
(Reuter s 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
propos ed $17 billion lease. John Sams, the Boeing official who
negotiat ed the deal with the air force, said each aircraft was
projecte d 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
compan y said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspo ndingly. Under a tentative deal awaiting U.S. Defense
Departme nt's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billio n.
(Reute rs 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
controv ersial $17 billion plan for the Air Force to lease 100
BOEIN G 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
arrange ment 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
complic ated because the government generally buys rather than
lease s equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
indepen dent watchdog agencies.
(Reuter s 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 :


BOEI NG 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.
Defens e Secretary Donald Rumsfeld sought information on
purcha sing some of the planes, sources familiar with the matter
said . Also being informally examined is how the price per plane
coul d drop if another 80 to 100 of the tankers were to be
ordere d, 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
Forc e 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
abov e 100 would have to be approved by Congress and the White
House, " he said.
(Reute rs 05:06 PM ET 04/10/2003)

More :
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
wrot e:


Defen se Secretary Donald Rumsfeld is to review a $21 billion Air
For ce plan to lease modified 767 BOEING CO. tankers that has
com e under fire for its cost and financing, according to
sourc es 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
Boein g deal, are due to brief Rumsfeld. He was not expected to
appro ve or reject the deal at Monday's meeting, although
sourc es close to the negotiations said they expected him to
mak e a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
servi ce's fleet of 40-year-old KC-135 tankers. Financial
servi ce companies would set up a "special purpose entity" to
flo at bonds to buy the tankers from Boeing, and lease them to
the military.
(Reut ers 05:33 PM ET 03/07/2003)

Mor e:
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
(Larr y Dighera) wrote in Message ID
fjrn :


BOEI NG CO. expects a U.S. decision in the next 2 weeks on a
$1 7-billion tanker lease contract, a senior company official
said , adding that sales to the UK and others were also under
disc ussion. The world's largest aircraft maker aims to supply
10 0 tanker versions of its 767 commercial airliner to replace
th e U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
cert ain we'll have closure on it in the next two weeks," George
Muel lner, Boeing senior VP for Air Force systems, told defense
repo rters in London. "We've had dialogue with three or four
othe r countries, other than Italy and Japan," Muellner said.
Muel lner said Japan had signed a deal this month and Australia
wa s interested. Italy signed a deal for four 767-based tankers
la st month.
(Reu ters 01:55 PM ET 01/29/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
4n8 :


T op Pentagon officials aim to decide next week whether to allow
t he Air Force to lease 100 modified 767 BOEING CO. tankers to
rep lace its ageing fleet, Defense Undersecretary Edward
Ald ridge said. "It's hard ... It's a major investment,"
Ald ridge said of the controversial $17 billion deal, which
wou ld give the Air Force up to 12 new tankers in 2006 and all
1 00 by 2011. For an additional $4 billion the Air Force would
b e able to purchase the jets outright at the end of the lease,
sou rces familiar with the deal have said. Aldridge, the
Pen tagon's chief weapons buyer, favors innovative and flexible
app roaches to defense procurement, and his office has
cha mpioned streamlined acquisitions rules aimed at getting
wea pons to the services more quickly.
(Re uters 03:42 PM ET 02/07/2003)

Mor e:
http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07

O n Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
d7 :


Th e U.S. Air Force hopes to win approval in Q1 2003 for a
co ntroversial contract to lease 100 767 commercial jets from
BO EING CO., sources familiar with the discussions said on
Mo nday. The $17 billion lease contract - aimed at replacing the
Ai r Force's aging fleet of KC-135 tankers -- has been in the
wo rks for over a year and still requires approval by top
Pe ntagon officials and U.S. lawmakers, who raised questions
la st year about the costs of an earlier version of the
co ntract. The deal now under discussion would give the Air
Fo rce 11 to 12 new tankers in 2006, with all 100 to be
de livered by 2011. For an additional $4 billion, the Air Force
wi ll be able to purchase the jets outright at the end of the
le ase, according to sources familiar with the deal.
(R euters 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
(L arry Dighera) wrote in Message ID
i :


B OEING CO. said it no longer expected to wrap up as early as next
m onth a proposed deal, valued at as much as $18 billion, to
l ease 100 aerial refueling tankers to the U.S. Air Force.
I nstead, it may take until early next year to reach agreement
w ith the Air Force, partly because of a new Congress taking
o ffice in January, said Jim Albaugh, president and chief
e xecutive of Boeing's Integrated Defense Systems unit. "We're
i n 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)

M o
http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14

= ================================================== =============


O n Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
( Larry Dighera) wrote in Message ID
:


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
:



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
:



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
:



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
:

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
...

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?

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


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
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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
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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
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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
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========================================== ======================
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
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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
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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
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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
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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
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BOEING CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveiled a new internal ethics office reporting directly to
company Chairman and CEO Phil Condit. Boeing said Senior VP
Bonnie Soodik would lead the new organization, assuming
responsibility for internal auditing, ethics, import-export
compliance, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspector general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
shared proprietary data with Boeing during negotiations on a 767
tanker lease deal.
(Reuters 06:02 PM ET 11/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11



On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera
wrote in Message-Id: :

Congressional conferees have approved a multibillion-dollar
compromise plan for the Air Force to acquire 100 BOEING CO.
refueling aircraft, leasing the first 20 of them, the House of
Representatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
services panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmarks $400 billion for the Defense Department and national
security programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defense Department will be required to conduct and report on an
independent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuters 10:08 AM ET 11/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07


On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon, bowing to critics, said it would lease just 20
planes under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outright. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapons system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense. Originally, the Air Force had sought to lease all 100
tankers, derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replacing its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuters 03:16 PM ET 11/06/2003)

Mo
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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

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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
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==================================== ============================
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
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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
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congressional reports poking holes in what would be the first
such rental of a major weapons system. "The Air Force is hoping
that the Senate Armed Services Committee will approve our
original proposal to lease 100 tankers," said a spokeswoman,
Major Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
oversight panels that has yet to approve the deal, designed to
acquire the tankers without significant upfront funding that
would squeeze other combat priorities. The service defended the
lease a day after the Congressional Budget Office found
taxpayers could reap $6.7 billion in savings with an outright
purchase, which is standard procurement procedure for arms
systems.
(Reuters 04:21 PM ET 10/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17

================================== ==============================


On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wrote in Message-Id: :

The top Democrat on the House of Representatives' Armed Services
Committee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressional Budget Office, General Accounting Office,
Institute for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraft initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuters 12:53 PM ET 10/09/2003)

Mo
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The House of Representatives' Appropriations Committee voted to
press ahead with a $22.4 billion proposal to lease then buy
BOEING CO. 737s as Air Force refueling planes. But the move to
lease 100 modified 767s as mid-air tankers starting in 2006 --
identical to a Senate appropriations measure -- highlighted
misgivings about the deal among what appeared to be a growing
number of lawmakers. The panel shot down, 33 to 28, a rival
plan, jokingly introduced by its top Democrat, David Obey of
Wisconsin, that would have earmarked $14 billion to start
buying the aircraft outright rather than leasing them first.
"If you want to save the taxpayers money, the best way is to
buy them now," Obey said in bating colleagues to own up to the
lease's extra costs and exercise what he portrayed as fiscal
responsibility.
(Reuters 03:16 PM ET 10/09/2003)

Mo
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On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wrote in Message-Id: :

New questions emerged about the personal ties between BOEING CO.
and Darleen Druyun, a former top Air Force official who got a
job with the company after helping negotiate a multibillion
dollar deal to lease Boeing 767s as airborne refueling tankers.
The National Legal and Policy Center, a conservative nonprofit
group opposing the lease deal, released public records that
show Druyun agreed to sell her Virginia home to a senior Boeing
attorney while still working for the Air Force as a procurement
official. She had been deputy assistant secretary for Air Force
acquisition and management. The group also said Druyun's
daughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(Reuters 03:18 PM ET 10/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07

================================ ================================

On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wrote in Message-Id: :

The nonpartisan U.S. Congressional Research Service raised new
doubts on Wednesday about a fresh Pentagon push to acquire
BOEING CO. 767 aircraft as midair refueling tankers through a
lease. The research service said the Defense Department's
latest proposal bolstered the case for purchasing the aircraft
outright, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuters 07:46 PM ET 10/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01

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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
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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
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============================= ===================================


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
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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
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============================ ====================================


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
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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
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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
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========================= =======================================


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
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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
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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
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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
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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
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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
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======================= =========================================


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
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====================== ==========================================


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
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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
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=================== =============================================

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
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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
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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
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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
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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
multibillio n-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Managemen t 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
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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
commercia l 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
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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
agreemen t 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
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On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsi ng a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressi onal 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
Washingto n 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
tentati ve 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
reportedl y lowered the cost to the Air Force.
(Reuter s 05:39 PM ET 05/07/2003)

Mo
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On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera
wrote:



Pentag on lawyers are taking a final look at a proposed
multibil lion Air Force lease of 100 BOEING CO. 767 jets as
refuelin g tankers and the deal could be approved later Tuesday,
defens e officials said. But sources familiar with the
negotiat ions warned the deal -- which critics blast as a
corporat e 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
origin al 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.
(Reute rs 12:04 PM ET 05/06/2003)

Mo
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======== ================================================== ======

On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera
wrote:



BOEIN G 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
propose d $17 billion lease. John Sams, the Boeing official who
negotia ted the deal with the air force, said each aircraft was
project ed 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
compa ny said, and total $28.8 million per tanker over the 6
years . If the leases were extended, Boeing's take would rise
corresp ondingly. Under a tentative deal awaiting U.S. Defense
Departm ent'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 .
(Reuter s 11:46 PM ET 05/01/2003)

Mo
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======= ================================================== =======

On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera
wrote :



Top Pentagon and White House officials on May 2 will revisit a
contro versial $17 billion plan for the Air Force to lease 100
BOEI NG 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
arrang ement 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
compli cated because the government generally buys rather than
leas es equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
indepe ndent watchdog agencies.
(Reute rs 05:34 PM ET 04/21/2003)

More :
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
wrot e:


BOEIN G 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.
Defen se Secretary Donald Rumsfeld sought information on
purch asing some of the planes, sources familiar with the matter
sai d. Also being informally examined is how the price per plane
cou ld drop if another 80 to 100 of the tankers were to be
order ed, the sources said. Boeing and Air Force officials have
bee n hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
For ce the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
mor e than 100 aircraft. "The only plan is for 100. Any increase
abo ve 100 would have to be approved by Congress and the White
House ," he said.
(Reut ers 05:06 PM ET 04/10/2003)

Mor e:
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 :


Defe nse Secretary Donald Rumsfeld is to review a $21 billion Air
Forc e plan to lease modified 767 BOEING CO. tankers that has
co me under fire for its cost and financing, according to
sour ces familiar with the deal. Defense Undersecretary Edward
"Pet e" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boei ng deal, are due to brief Rumsfeld. He was not expected to
appr ove or reject the deal at Monday's meeting, although
sour ces close to the negotiations said they expected him to
ma ke a decision soon. Under the plan, the Air Force would pay
$1 7 billion to lease 100 planes to start replacing the
serv ice's fleet of 40-year-old KC-135 tankers. Financial
serv ice companies would set up a "special purpose entity" to
floa t bonds to buy the tankers from Boeing, and lease them to
th e military.
(Reu ters 05:33 PM ET 03/07/2003)

More :
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
(Lar ry Dighera) wrote in Message ID
fjr :


BOE ING CO. expects a U.S. decision in the next 2 weeks on a
$ 17-billion tanker lease contract, a senior company official
sai d, adding that sales to the UK and others were also under
dis cussion. The world's largest aircraft maker aims to supply
1 00 tanker versions of its 767 commercial airliner to replace
t he U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
cer tain we'll have closure on it in the next two weeks," George
Mue llner, Boeing senior VP for Air Force systems, told defense
rep orters in London. "We've had dialogue with three or four
oth er countries, other than Italy and Japan," Muellner said.
Mue llner said Japan had signed a deal this month and Australia
w as interested. Italy signed a deal for four 767-based tankers
las t month.
(Re uters 01:55 PM ET 01/29/2003)

Mor e:
http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29


O n Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(La rry Dighera) wrote in Message ID
4n :


To p Pentagon officials aim to decide next week whether to allow
th e Air Force to lease 100 modified 767 BOEING CO. tankers to
re place its ageing fleet, Defense Undersecretary Edward
Al dridge said. "It's hard ... It's a major investment,"
Al dridge said of the controversial $17 billion deal, which
wo uld give the Air Force up to 12 new tankers in 2006 and all
10 0 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
so urces familiar with the deal have said. Aldridge, the
Pe ntagon's chief weapons buyer, favors innovative and flexible
ap proaches to defense procurement, and his office has
ch ampioned streamlined acquisitions rules aimed at getting
we apons to the services more quickly.
(R euters 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
(L arry Dighera) wrote in Message ID
d :


T he U.S. Air Force hopes to win approval in Q1 2003 for a
c ontroversial contract to lease 100 767 commercial jets from
B OEING CO., sources familiar with the discussions said on
M onday. The $17 billion lease contract - aimed at replacing the
A ir Force's aging fleet of KC-135 tankers -- has been in the
w orks for over a year and still requires approval by top
P entagon officials and U.S. lawmakers, who raised questions
l ast year about the costs of an earlier version of the
c ontract. The deal now under discussion would give the Air
F orce 11 to 12 new tankers in 2006, with all 100 to be
d elivered by 2011. For an additional $4 billion, the Air Force
w ill be able to purchase the jets outright at the end of the
l ease, according to sources familiar with the deal.
( Reuters 06:22 PM ET 01/13/2003)

M o
http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13

----------

O n Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
( Larry Dighera) wrote in Message ID
:


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
:


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
:



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
:



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
:



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
t:

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:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@new s-server.socal.rr.com...

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?