Tanker part 3

Boeing May Enter
A Modified 777
In Tanker Battle
By ANDY PASZTOR and J. LYNN LUNSFORD
Staff Reporters of THE WALL STREET JOURNAL
December 5, 2005
With a military competition for new aerial refueling tankers on the
horizon, it is increasingly likely that the Defense Department and
congressional leaders will want Boeing Co.'s entry to be a modified
version of its 777 aircraft, rather than the 767 tanker the company has
already developed.
A competition to modernize the U.S. military service's aging tanker
fleet is expected to begin next year, and Boeing's plane would likely be
pitted against an offering from European archrival Airbus. Final
decisions on modernizing the military's aging air tanker fleet could
stretch into 2007, and it isn't clear where the money to buy dozens of
new planes will come from.
But after years of focusing on the cost and attributes of the 767 as a
flying gas station for the military, attention inside the Pentagon and
on Capitol Hill has shifted to the more expensive but more capable 777.
Responding to overall budget pressures as well as advice by outside
experts, military leaders are leaning toward tanker aircraft that would
be able to ferry cargo, troops or conduct certain types of airborne
surveillance.
Both the 767 and 777 have two engines, but the 777 is about a third
larger and poses extra operating complexities on cramped airfields. In
the past, the Air Force argued its pressing aerial-refueling needs made
it impractical to consider tankers for other uses. The size and timing
of tanker contracts will depend on the conclusions of Pentagon studies
of requirements for cargo and tanker aircraft.
If plans for a multimission tanker end up as part of Defense Department
budgets, Boeing eventually stands to benefit because a 777 airliner
costs an average of about $80 million more than a 767 model. But a
switch would almost certainly spell the end for the Chicago aerospace
giant's 767 assembly line, which has been kept open in recent months by
a handful of final orders from airlines that fly the plane on
international routes. Boeing is developing a new plane, the 787
"Dreamliner," to replace the 767 in commercial service. That plane is
expected to enter service in mid-2008.
U.S. Rep. Ken Calvert, a California Republican who is chairman of a
subcommittee on aeronautics and serves on the Armed Services Committee,
is among those pushing the 777. The military and Congress "probably will
go to a new tanker design" based on the 777, because "it gives us a lot
more flexibility," Rep. Calvert said in an interview. "I don't think we
want to buy a plane" like the 767, he added, "because it's on the way
out" of production.
U.S. Air Force Secretary Michael Wynne, making his first public
statements about tanker-acquisition plans a few days ago, likewise
stressed the importance of flexibility beyond aerial refueling.
A Boeing spokesman said the manufacturer has maintained all along that
it will be ready to build any type of tanker specified by the Air Force.
Write to Andy Pasztor at and J. Lynn Lunsford at

The Boeing Company http://www.boeing.com/news/releases/index.html
Boeing to Take Charges in Second Quarter for Airborne Surveillance
Program and Previously Disclosed Tentative Legal Settlement

CHICAGO, June 29, 2006 -- The Boeing Company [NYSE:BA] announced today
that it will recognize charges related to delays on an international
airborne surveillance program and a previously disclosed tentative
legal settlement with the U.S. government when it announces
second-quarter 2006 results July 26.

Boeing expects to record a charge of between $300 million and $500
million pre-tax due to delays related to its Airborne Early Warning &
Control (AEW&C) program for Australia and Turkey. Additionally, the
company expects to recognize a $615 million charge to reflect a
tentative settlement with the U.S. Justice Department related to the
hiring of a former Air Force official and handling of a competitor's
proprietary information.

The expected charge for AEW&C program delays will be finalized after
ongoing reviews and will be recorded in the Precision Engagement &
Mobility Systems segment of Boeing's Integrated Defense Systems
business. The actual amount of the charge will be determined over the
course of the next few weeks as the recovery plan is better understood
and will be disclosed when Boeing issues its second quarter financial
results.

This international airborne surveillance program, known as Wedgetail
in Australia and Peace Eagle in Turkey, consists of the 737-700
aircraft outfitted with highly complex, integrated command and control
and advanced radar systems.

Australia has purchased six AEW&C aircraft and Turkey has purchased
four. Delivery of the first two Wedgetail aircraft and that effort's
flight test schedule have been delayed up to 18 months because of
development and integration issues with certain hardware and software
components. Boeing now plans to deliver all six Wedgetail aircraft by
the end of 2008 and is developing the Peace Eagle schedule with its
Turkish customer.

"We regret the impact that these program delays are having on our
customers," said Boeing Chairman, President and Chief Executive
Officer Jim McNerney. "However, we are fully committed to a recovery
plan that will deliver systems that meet their operational
requirements."

IDS has reorganized the AEW&C program, strengthened the management
team and put additional oversight in place. The team is working with
the customers and suppliers to implement a go-forward plan. That plan
will target the talent and resources necessary to develop Wedgetail
and Peace Eagle on realistic schedules compatible with the team's
ability to deliver reliable, mission-ready systems.

Separately, the tentative agreement with U.S. Justice Department
announced on May 15, 2006, resolves all potential civil and criminal
claims and includes a monetary penalty. While the agreement is still
being finalized, the charge will be recorded in the second quarter.

The company will hold an analyst conference call
http://phx.corporate-ir.net/phoenix....ails&c=85482&e
ventID=1344993 to discuss these charges today at 9:30 a.m. Central
Time.



On Sun, 16 Apr 2006 02:32:21 GMT, john smith wrote in
::

Boeing May Enter
A Modified 777
In Tanker Battle
By ANDY PASZTOR and J. LYNN LUNSFORD
Staff Reporters of THE WALL STREET JOURNAL
December 5, 2005
With a military competition for new aerial refueling tankers on the
horizon, it is increasingly likely that the Defense Department and
congressional leaders will want Boeing Co.'s entry to be a modified
version of its 777 aircraft, rather than the 767 tanker the company has
already developed.
A competition to modernize the U.S. military service's aging tanker
fleet is expected to begin next year, and Boeing's plane would likely be
pitted against an offering from European archrival Airbus. Final
decisions on modernizing the military's aging air tanker fleet could
stretch into 2007, and it isn't clear where the money to buy dozens of
new planes will come from.
But after years of focusing on the cost and attributes of the 767 as a
flying gas station for the military, attention inside the Pentagon and
on Capitol Hill has shifted to the more expensive but more capable 777.
Responding to overall budget pressures as well as advice by outside
experts, military leaders are leaning toward tanker aircraft that would
be able to ferry cargo, troops or conduct certain types of airborne
surveillance.
Both the 767 and 777 have two engines, but the 777 is about a third
larger and poses extra operating complexities on cramped airfields. In
the past, the Air Force argued its pressing aerial-refueling needs made
it impractical to consider tankers for other uses. The size and timing
of tanker contracts will depend on the conclusions of Pentagon studies
of requirements for cargo and tanker aircraft.
If plans for a multimission tanker end up as part of Defense Department
budgets, Boeing eventually stands to benefit because a 777 airliner
costs an average of about $80 million more than a 767 model. But a
switch would almost certainly spell the end for the Chicago aerospace
giant's 767 assembly line, which has been kept open in recent months by
a handful of final orders from airlines that fly the plane on
international routes. Boeing is developing a new plane, the 787
"Dreamliner," to replace the 767 in commercial service. That plane is
expected to enter service in mid-2008.
U.S. Rep. Ken Calvert, a California Republican who is chairman of a
subcommittee on aeronautics and serves on the Armed Services Committee,
is among those pushing the 777. The military and Congress "probably will
go to a new tanker design" based on the 777, because "it gives us a lot
more flexibility," Rep. Calvert said in an interview. "I don't think we
want to buy a plane" like the 767, he added, "because it's on the way
out" of production.
U.S. Air Force Secretary Michael Wynne, making his first public
statements about tanker-acquisition plans a few days ago, likewise
stressed the importance of flexibility beyond aerial refueling.
A Boeing spokesman said the manufacturer has maintained all along that
it will be ready to build any type of tanker specified by the Air Force.
Write to Andy Pasztor at and J. Lynn Lunsford at