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The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================================================= =============== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================================================ ================ On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ============================================= =================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 =========================================== ===================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ================================== ============================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ================================= =============================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ================================ ================================ On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fkit : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os046 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhusa : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfbrj : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ========================== ====================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hrje : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4ia : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelrag : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ======================= ========================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.392147 : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ================================================= =============== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 =============================================== ================= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ============================================== ================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 =========================================== ===================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ========================================= ======================= On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ================================ ================================ On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 =============================== ================================= On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ============================== ================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3fk : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os0 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvhu : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtfb : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ======================== ======================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l6hr : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4 : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelr : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ===================== =========================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" et (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3921 : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ================================================ ================ On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ============================================== ================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ============================================= =================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ========================================== ====================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ======================================== ======================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 =============================== ================================= On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ============================== ================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ============================= =================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3f : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7os : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovvh : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojtf : 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 dvissu4135etdu8toc2l6h : 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 i4disug2gpmufjvj7kk9u : 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 d5panukhiq14qdrpfael : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ==================== ============================================ On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptm : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelphia. net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.392 : 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:8j8cjug531sd2 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ================================================== ============== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 =============================================== ================= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ============================================= =================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ============================================ ==================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ========================================= ======================= On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ======================================= ========================= On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ============================== ================================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ============================= =================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ============================ ==================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh3 : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7o : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fovv : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreojt : 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 dvissu4135etdu8toc2l6 : 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 i4disug2gpmufjvj7kk9 : 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 d5panukhiq14qdrpfae : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =================== ============================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbpt : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelphia .net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.39 : 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:8j8cjug531sd ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ================================================== ============== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ================================================== ============== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ================================================= =============== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ============================================== ================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ============================================ ==================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 =========================================== ===================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ======================================== ======================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ====================================== ========================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ============================= =================================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ============================ ==================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 =========================== ===================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7esh : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v7 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fov : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreoj : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ===================== =========================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2l : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfa : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================== ============================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbp : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelphi a.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6.3 : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531s ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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Damn it, I thought I had this "conversation" successfully
dumped in the bit bucket. Larry, if you must continue with these, could you at least limit the quotes to the last dozen messages? |
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Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ================================================== ============== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ================================================= =============== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ================================================= =============== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ================================================ ================ On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ============================================= =================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 =========================================== ===================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ========================================== ====================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ======================================= ========================= On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ===================================== =========================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ============================ ==================================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 =========================== ===================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ========================== ====================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7es : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94v : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5fo : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpreo : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ==================== ============================================ On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc2 : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7k : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpf : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================= =============================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihb : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelph ia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6. : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ================================================= =============== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ================================================ ================ The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ================================================ ================ On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 =============================================== ================= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ============================================ ==================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ========================================== ====================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ========================================= ======================= On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ====================================== ========================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ==================================== ============================ On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 =========================== ===================================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ========================== ====================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ========================= ======================================= On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7e : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip94 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5f : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpre : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 =================== ============================================= On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8toc : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7 : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrp : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ================ ================================================ On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sih : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adelp hia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka6 : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug53 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ================================================== ============== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ================================================ ================ On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 =============================================== ================= The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 =============================================== ================= On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ============================================== ================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 =========================================== ===================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ========================================= ======================= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ======================================== ======================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ===================================== =========================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 =================================== ============================= On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ========================== ====================================== On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ========================= ======================================= On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ======================== ======================================== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d7 : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip9 : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o5 : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbpr : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ================== ============================================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID dvissu4135etdu8to : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdr : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =============== ================================================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7si : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@adel phia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$ka : More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug5 ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ================================================= =============== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 =============================================== ================= On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ============================================== ================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ============================================== ================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ============================================= =================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ========================================== ====================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ======================================== ======================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ======================================= ========================= On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ==================================== ============================ On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ================================== ============================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitution and settlement fees. (Reuters 01:00 AM ET 06/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10 ---------------------------------------------------------------- On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera wrote: U.S. senators will hold a hearing in early June on a $16 billion plan for BOEING CO. to lease 100 modified 767 jets to the Air Force, but congressional aides and defense experts did not expect the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defense experts said they did not expect it to be the harbinger of a new Pentagon preference for leasing military equipment. "It's going to sail through Congress," said Loren Thompson, head of the Virginia-based Lexington Institute. "I don't see it being held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reuters 05:19 PM ET 05/27/2003) Mo http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27 ---------------------------------------------------------------- On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera wrote: The White House budget office said that scant headway had been made as far as it was concerned toward a proposed multibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Management and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowitz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoman, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- Top Pentagon officials late on Tuesday began reviewing the Air Force's plans to lease 100 BOEING CO. 767s as refueling tankers after the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agreed to lower the price for each of the modified 767-200ER planes below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corporate welfare for a company hard hit by a slump in commercial sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchase at the end. (Reuters 05:35 PM ET 05/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wrote: BOEING CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tankers, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreement very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuters 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsing a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congressional mover behind the plan said Wednesday. "I'm talking to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washington Democrat who spearheaded the law authorizing the unusual leasing arrangement. The Air Force and Boeing have been working on the proposed lease for more than a year. Their tentative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reportedly lowered the cost to the Air Force. (Reuters 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentagon lawyers are taking a final look at a proposed multibillion Air Force lease of 100 BOEING CO. 767 jets as refueling tankers and the deal could be approved later Tuesday, defense officials said. But sources familiar with the negotiations warned the deal -- which critics blast as a corporate handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the original deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuters 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ========================= ======================================= On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote: BOEING CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the proposed $17 billion lease. John Sams, the Boeing official who negotiated the deal with the air force, said each aircraft was projected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure would include all spare parts, training and simulators, the company said, and total $28.8 million per tanker over the 6 years. If the leases were extended, Boeing's take would rise correspondingly. Under a tentative deal awaiting U.S. Defense Department's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billion. (Reuters 11:46 PM ET 05/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 ======================== ======================================== On Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wrote: Top Pentagon and White House officials on May 2 will revisit a controversial $17 billion plan for the Air Force to lease 100 BOEING CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have been pressing for months to win approval for the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. The deal is complicated because the government generally buys rather than leases equipment like tankers. It has also sparked criticism from some lawmakers, the Office of Management and Budget and independent watchdog agencies. (Reuters 05:34 PM ET 04/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ======================= ========================================= On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote: BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the U.S. Air Force as refueling tankers faces delay after U.S. Defense Secretary Donald Rumsfeld sought information on purchasing some of the planes, sources familiar with the matter said. Also being informally examined is how the price per plane could drop if another 80 to 100 of the tankers were to be ordered, the sources said. Boeing and Air Force officials have been hoping for months to get final clearance to proceed with the unique leasing arrangement that would also give the Air Force the option to buy the jets for $4 billion at the end of the lease. Pentagon spokesman Glenn Flood dismissed any talk of more than 100 aircraft. "The only plan is for 100. Any increase above 100 would have to be approved by Congress and the White House," he said. (Reuters 05:06 PM ET 04/10/2003) Mo http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrote: Defense Secretary Donald Rumsfeld is to review a $21 billion Air Force plan to lease modified 767 BOEING CO. tankers that has come under fire for its cost and financing, according to sources familiar with the deal. Defense Undersecretary Edward "Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Boeing deal, are due to brief Rumsfeld. He was not expected to approve or reject the deal at Monday's meeting, although sources close to the negotiations said they expected him to make a decision soon. Under the plan, the Air Force would pay $17 billion to lease 100 planes to start replacing the service's fleet of 40-year-old KC-135 tankers. Financial service companies would set up a "special purpose entity" to float bonds to buy the tankers from Boeing, and lease them to the military. (Reuters 05:33 PM ET 03/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fjrn4vkjedt414f5o81d : BOEING CO. expects a U.S. decision in the next 2 weeks on a $17-billion tanker lease contract, a senior company official said, adding that sales to the UK and others were also under discussion. The world's largest aircraft maker aims to supply 100 tanker versions of its 767 commercial airliner to replace the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm certain we'll have closure on it in the next two weeks," George Muellner, Boeing senior VP for Air Force systems, told defense reporters in London. "We've had dialogue with three or four other countries, other than Italy and Japan," Muellner said. Muellner said Japan had signed a deal this month and Australia was interested. Italy signed a deal for four 767-based tankers last month. (Reuters 01:55 PM ET 01/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera (Larry Dighera) wrote in Message ID 4n8e4v8av75ot2gflip : Top Pentagon officials aim to decide next week whether to allow the Air Force to lease 100 modified 767 BOEING CO. tankers to replace its ageing fleet, Defense Undersecretary Edward Aldridge said. "It's hard ... It's a major investment," Aldridge said of the controversial $17 billion deal, which would give the Air Force up to 12 new tankers in 2006 and all 100 by 2011. For an additional $4 billion the Air Force would be able to purchase the jets outright at the end of the lease, sources familiar with the deal have said. Aldridge, the Pentagon's chief weapons buyer, favors innovative and flexible approaches to defense procurement, and his office has championed streamlined acquisitions rules aimed at getting weapons to the services more quickly. (Reuters 03:42 PM ET 02/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d7d92v8q5sdkupes0o : The U.S. Air Force hopes to win approval in Q1 2003 for a controversial contract to lease 100 767 commercial jets from BOEING CO., sources familiar with the discussions said on Monday. The $17 billion lease contract - aimed at replacing the Air Force's aging fleet of KC-135 tankers -- has been in the works for over a year and still requires approval by top Pentagon officials and U.S. lawmakers, who raised questions last year about the costs of an earlier version of the contract. The deal now under discussion would give the Air Force 11 to 12 new tankers in 2006, with all 100 to be delivered by 2011. For an additional $4 billion, the Air Force will be able to purchase the jets outright at the end of the lease, according to sources familiar with the deal. (Reuters 06:22 PM ET 01/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=759...a&s=rb0301 13 ---------- On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera (Larry Dighera) wrote in Message ID ifpdtuovlha5l2fbp : 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 dvissu4135etdu8t : 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 i4disug2gpmufjv : 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 d5panukhiq14qd : 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 $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============== ================================================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7s : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" ballensr@ade lphia.net (W. D. Allen) wrote in Message ID EMCZ8.6962$k : 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:8j8cjug ... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? -- Irrational beliefs ultimately lead to irrational acts. -- Larry Dighera, |
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