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Boeing Boondoggle



 
 
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Old June 7th 04, 07:10 AM
Larry Dighera
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The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

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Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
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On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
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On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
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On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
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On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
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On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
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On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
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On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
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Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
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Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
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Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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


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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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

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


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

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

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

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

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

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



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

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

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


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


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

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

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

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


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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

Mo
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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wrote in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
deal for BOEING CO. in the face of tough questions from Senate
aides . Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Micha el Zettler, deputy chief of staff for installations and
logisti cs, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
simil ar -- and equally contentious -- briefing for Senate
profess ional staffers on Friday, aides said. Despite the
last-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
controv ersial lease deal this week, putting off any action
until at least mid-October, after a one-week recess. The
committ ee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reuter s 08:08 PM ET 09/29/2003)

Mo
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On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrote in Message-Id: :


Sena te Armed Services Committee member John McCain, who helped
stal l a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Depart ment proposal. The Pentagon still has "not adequately
justif ied spending what it now acknowledges will be billions of
dollar s more to acquire tankers through a lease," McCain, an
Arizon a Republican, said in letters to the armed services
panel' s leaders. McCain's new qualms could translate into
furthe r delays for the tanker deal -- a plan to lease a major
weapon s system for the first time rather than buy it outright.
(Reute rs 04:53 PM ET 09/25/2003)

More :
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The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billio n deal to lease then buy 100 Boeing 767 tankers,
congre ssional and administration sources said on Monday. They
said Inspector General Joseph Schmitz is considering the
unusua l move as he investigates possible impropriety in the
leas e proposal that critics including U.S. Sen. John McCain
have blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
docume nts provided by Boeing to Senate Commerce Committee
Chairm an McCain, an Arizona Republican. But investigators,
includ ing an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reute rs 05:40 PM ET 09/22/2003)

More :
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Boei ng Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking
author ity to buy 26 of the tankers before their 6-year leases
expi re to pare total program costs by $1.2 billion. Deputy
Defens e Secretary Paul Wolfowitz said buying the 26 tankers
earl y, between 2008 and 2010, would add $2.4 billion in initial
budg et costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cost of the program, the additional funds needed ... and the
delive ry schedule for the new capability," he told the Senate
Arme d Services Committee, the last of four congressional panels
that must vote on the lease deal.
(Reute rs 02:53 PM ET 09/23/2003)

More :
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On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrot e in Message-Id: :


The Pentagon's inspector general has told Congress he plans a
forma l investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircr aft as refueling tankers, a U.S. lawmaker said on
Wedne sday. The inspector general, Joseph Schmitz, has concluded
tha t "sufficient credible information exists to warrant" a
forma l investigation, said Sen. John McCain, an Arizona
Repub lican who has denounced the lease proposal as a sweetheart
dea l for Boeing. "Up to now, it appears that the interests of
taxpa yers have been subordinated to those of Boeing," McCain
sai d in disclosing the upgraded probe. In recent weeks, the
Penta gon's in-house watchdog has carried out a preliminary
inqui ry into, among other things, whether an Air Force official
gav e Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reut ers 10:50 PM ET 09/17/2003)

Mor e:
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Presi dent George W. Bush backed a controversial Air Force plan to
lea se BOEING 767 aircraft as refueling tankers despite criticism
fro m Congress, according to an interview. "I do support it," he
sai d in an interview with the Seattle Post-Intelligencer and
oth er regional newspapers. Senate Armed Services Committee
Chair man John Warner, a Virginia Republican, and Carl Levin of
Michi gan, the panel's top Democrat, have asked Defense
Secre tary Donald Rumsfeld to consider slashing the Air Force
propo sal to lease and then buy 100 767s for $22.4 billion. The
senat ors have suggested leasing no more than 25 767s while
getti ng the rest of any needed tankers through standard
purch ase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
refer ence to the up to 25 aircraft that Warner and Levin have
sugge sted.
(Reut ers 01:34 PM ET 09/17/2003)

Mor e:
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On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wro te in Message-Id: :

Se n. John McCain said that BOEING CO. appeared to have improperly
slan ted the Pentagon process that led to its troubled $22.4
bill ion plan to lease then sell modified refueling tankers to
th e Air Force. "To the extent that Boeing did so, its conduct
migh t have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schm itz, the Defense Department inspector general, to expand an
inqu iry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Dona ld Rumsfeld to provide all records relating to the lease
prop osal from both Air Force Secretary James Roche and the
Pent agon's acting chief weapons buyer, Michael Wynne.
(Reu ters 08:38 PM ET 09/11/2003)

More :
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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wrot e in Message-Id: :

T he U.S. Air Force on Monday said it expected to respond by early
nex t week to a letter from the Senate Armed Services Committee
pro posing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We 're in the process of preparing our letter," said Air Force
spo keswoman Gloria Cales. "We should have our response pulled
tog ether later this week or early next week." Cales gave no
det ails, but Air Force acquisitions chief Marvin Sambur last
wee k said it would be "significantly more expensive" to lease
few er airplanes, due to lost volume discounts and the impact of
inf lation. Once the Air Force completed its response, it would
g o to Defense Secretary Donald Rumsfeld for approval, she said.
(Re uters 06:17 PM ET 09/08/2003)

Mor e:
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O n Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wro te in Message-Id: :

Se n. John McCain, who has criticized the cost of a U.S. Air Force
pr oposal to lease BOEING CO. 767s as refueling tankers, said on
Fr iday he would press Air Force Secretary James Roche and other
to p Pentagon officials to hand over all records on the deal.
"W e'll be asking for as much information as we can get," McCain
sa id in a telephone interview, 1 day after the Senate Armed
Se rvices Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(R euters 04:23 PM ET 09/05/2003)

Mo
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On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wr ote in Message-Id: :

T he Pentagon's Inspector General announced a formal investigation
i nto whether an Air Force official improperly shared data with
B OEING CO., raising new questions about a $22.4 billion Air
F orce deal to lease, then buy 100 767 tankers. Sen. John McCain
c ited the investigation and once again blasted the proposed
l ease deal at a Senate Commerce Committee hearing, while Alaska
R epublican Sen. Ted Stevens underscored what he called the
u rgency of quickly replacing the Air Force's aging fleet of
K C-135 tankers due to increased wartime use. McCain said
d ocuments provided by Chicago-based Boeing, the Air Force and
t he Pentagon which prompted the investigation showed an
" extremely aggressive sales pitch" for the deal.
( Reuters 04:11 PM ET 09/03/2003)

M o
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D arleen Druyun, a former Air Force official, offered as early as
O ctober 2001 to meet with investors to stress the low risk of a
d eal for the Air Force to lease Boeing tankers, a BOEING CO.
m emorandum shows. The Pentagon's Inspector General on Wednesday
l aunched a formal investigation into whether the Air Force
s hared proprietary data with Boeing, an inquiry defense
o fficials said was focused on Druyun, who joined Boeing in
J anuary 2003 after retiring from the Air Force in November
2 002. Boeing denies it received any proprietary data during the
n egotiations, and Druyun had declined interview requests. The
c ompany insists Druyun has not been involved in the lease
n egotiations since joining the company, adhering firmly to
f ederal rules for former defense officials. Pentagon
i nvestigators will try to determine if Druyun overstepped her
b ounds in those discussions, but congressional sources said it
w as clear from a series of emails provided to lawmakers by
B oeing that she played a key role early in the Air Force's
n egotiations with Boeing.
( Reuters 08:12 PM ET 09/03/2003)

M o
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S enate Armed Services Committee Chairman John Warner said his
p anel would not rush to a vote on a controversial Air Force
p lan to lease 100 BOEING CO. 767 refueling tankers, which has
b een dogged by questions about its cost and propriety. "We owe
a n obligation to the taxpayers to very carefully assess this
i ssue," the Virginia Republican said at the opening of a
h earing into the $22.4 billion Air Force proposal to lease and
t hen buy 100 aerial tankers. Warner said members of his panel
w ould hold discussions in a closed hearing after taking
t estimony from witnesses before he would schedule a vote.
( Reuters 10:26 AM ET 09/04/2003)

M o
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T he U.S. Senate Armed Services Committee has asked Defense
S ecretary Donald Rumsfeld to look at leasing just one quarter
o f the 100 BOEING CO. 767s sought by the Air Force as refueling
t ankers, officials said. The committee will postpone a vote on
t he Air Force's plan until it gets a Pentagon analysis, the
o fficials said.
( Reuters 05:05 PM ET 09/04/2003)

M o
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O n Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
w rote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
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On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
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On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
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On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23

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



On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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

On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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


On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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

On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21

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



Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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


On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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


On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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


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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit2 :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os0460 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvhusal :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtfbrjl :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6hrje2 :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u4iag :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfaelragt :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptme3g7 :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
t (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3921471 @news3.news.adelphia.net:

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94m ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
----------------------------------------------------------------


On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1
0



On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:


Boeing Co (BA) (44.41 +1.27)

Plans for the U.S. Air Force to lease BOEING CO. 767 commercial
aircraft as aerial refueling tankers is an expensive solution
that could actually cut overall fuel capacity, according to a
White House analysis obtained on Tuesday. Office of Management
and Budget Director Mitch Daniels said leasing the 100 767s to
start replacing a 40-year-old fleet of KC-135 tankers would
cost up to $26 billion and result in a slightly smaller overall
fuel capacity. A $3.2 billion upgrade of 126 KC-135s would
increase fleet capacity by a similar amount but the Air Force
had not chosen this route, Daniels said in a letter to leasing
critic, Arizona Republican Sen. John McCain.
(Reuters 07:52 PM ET 05/07/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205
07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,

  #72  
Old June 17th 04, 01:21 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

Mo
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Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=968...a&s=rb0406 04

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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19

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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07

========================================= =======================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
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On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06

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On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
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----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03

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Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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

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


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


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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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

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


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

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

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

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

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

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

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



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

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

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


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


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

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

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


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

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

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

Bad blood between the U.S. Congress and the Pentagon has taken a
toll on BOEING CO.'s multibillion-dollar drive to lease
jetliners to the Air Force as refueling planes, congressional
officials and private analysts said on Friday. The Boeing issue
laid bare growing strains between Defense Secretary Donald
Rumsfeld and his top lieutenants, on the one hand, and the two
most powerful Republicans on the Senate Armed Services
Committee , on the other. Among other things, the chill reflects
pique at what officials on both sides of the aisle deem
Rumsfeld' s sometimes-dismissive approach to Congress, for
instance on the situation in post-war Iraq. But it also
reflects perceived slights to Armed Services Committee Chairman
John Warner of Virginia, Congress's top overseer of the Defense
Departmen t, and the panel's second-ranking Republican, John
McCain of Arizona.
(Reuters 06:20 PM ET 10/24/2003)

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


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

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


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

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


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

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

The top Democrat on the House of Representatives' Armed Services
Committ ee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citing studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
reports and studies that have emerged since our hearings on the
issue," Rep. Ike Skelton of Missouri wrote panel chairman
Duncan Hunter, R-Calif., on Wednesday. Studies by the
Congressi onal Budget Office, General Accounting Office,
Institu te for Defense Analyses and Congressional Research
Service have shown that acquiring the 100 modified Boeing 767
aircraf t initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuter s 12:53 PM ET 10/09/2003)

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

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

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

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

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

The nonpartisan U.S. Congressional Research Service raised new
doubt s on Wednesday about a fresh Pentagon push to acquire
BOEIN G CO. 767 aircraft as midair refueling tankers through a
lease . The research service said the Defense Department's
lates t proposal bolstered the case for purchasing the aircraft
outrigh t, rather than leasing them first in a deal valued at
$22.4 billion. Earlier this month the Senate Armed Services
Committ ee put off what was to have been a final vote on the
lease proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reuter s 07:46 PM ET 10/01/2003)

Mo
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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wrote in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
deal for BOEING CO. in the face of tough questions from Senate
aide s. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Michae l Zettler, deputy chief of staff for installations and
logist ics, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
simila r -- and equally contentious -- briefing for Senate
profes sional staffers on Friday, aides said. Despite the
last-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
contro versial lease deal this week, putting off any action
unti l at least mid-October, after a one-week recess. The
commit tee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reute rs 08:08 PM ET 09/29/2003)

More :
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On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrot e in Message-Id: :


Senat e Armed Services Committee member John McCain, who helped
sta ll a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Depar tment proposal. The Pentagon still has "not adequately
justi fied spending what it now acknowledges will be billions of
dolla rs more to acquire tankers through a lease," McCain, an
Arizo na Republican, said in letters to the armed services
panel 's leaders. McCain's new qualms could translate into
furth er delays for the tanker deal -- a plan to lease a major
weapo ns system for the first time rather than buy it outright.
(Reut ers 04:53 PM ET 09/25/2003)

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



The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billi on deal to lease then buy 100 Boeing 767 tankers,
congr essional and administration sources said on Monday. They
sai d Inspector General Joseph Schmitz is considering the
unusu al move as he investigates possible impropriety in the
lea se proposal that critics including U.S. Sen. John McCain
hav e blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
docum ents provided by Boeing to Senate Commerce Committee
Chair man McCain, an Arizona Republican. But investigators,
inclu ding an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reut ers 05:40 PM ET 09/22/2003)

Mor e:
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Boein g Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
dea l to lease, then buy, 100 BOEING CO. 767 tankers, seeking
autho rity to buy 26 of the tankers before their 6-year leases
expir e to pare total program costs by $1.2 billion. Deputy
Defen se Secretary Paul Wolfowitz said buying the 26 tankers
early , between 2008 and 2010, would add $2.4 billion in initial
budge t costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cos t of the program, the additional funds needed ... and the
deliv ery schedule for the new capability," he told the Senate
Arm ed Services Committee, the last of four congressional panels
tha t must vote on the lease deal.
(Reut ers 02:53 PM ET 09/23/2003)

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


On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wro te in Message-Id: :


Th e Pentagon's inspector general has told Congress he plans a
form al investigation of possible impropriety involving the U.S.
Ai r Force's $22.4 billion proposal to lease then buy BOEING 767
airc raft as refueling tankers, a U.S. lawmaker said on
Wedn esday. The inspector general, Joseph Schmitz, has concluded
th at "sufficient credible information exists to warrant" a
form al investigation, said Sen. John McCain, an Arizona
Repu blican who has denounced the lease proposal as a sweetheart
de al for Boeing. "Up to now, it appears that the interests of
taxp ayers have been subordinated to those of Boeing," McCain
sa id in disclosing the upgraded probe. In recent weeks, the
Pent agon's in-house watchdog has carried out a preliminary
inqu iry into, among other things, whether an Air Force official
ga ve Boeing proprietary pricing data from Airbus, a rival for
th e deal, Congressional staffmembers said.
(Reu ters 10:50 PM ET 09/17/2003)

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Pres ident George W. Bush backed a controversial Air Force plan to
leas e BOEING 767 aircraft as refueling tankers despite criticism
fr om Congress, according to an interview. "I do support it," he
sa id in an interview with the Seattle Post-Intelligencer and
othe r regional newspapers. Senate Armed Services Committee
Chai rman John Warner, a Virginia Republican, and Carl Levin of
Mich igan, the panel's top Democrat, have asked Defense
Secr etary Donald Rumsfeld to consider slashing the Air Force
prop osal to lease and then buy 100 767s for $22.4 billion. The
sena tors have suggested leasing no more than 25 767s while
gett ing the rest of any needed tankers through standard
purc hase procedures. Air Force Secretary James Roche said the
Ai r Force was still working on a lease-to-own deal, a possible
refe rence to the up to 25 aircraft that Warner and Levin have
sugg ested.
(Reu ters 01:34 PM ET 09/17/2003)

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wrot e in Message-Id: :

Sen . John McCain said that BOEING CO. appeared to have improperly
sla nted the Pentagon process that led to its troubled $22.4
bil lion plan to lease then sell modified refueling tankers to
t he Air Force. "To the extent that Boeing did so, its conduct
mig ht have constituted an organizational conflict of interest
o r anti-competitive behavior," he said in pressing Joseph
Sch mitz, the Defense Department inspector general, to expand an
inq uiry into the matter. In a separate letter, McCain, a member
o f the Armed Services Committee, called on Defense Secretary
Don ald Rumsfeld to provide all records relating to the lease
pro posal from both Air Force Secretary James Roche and the
Pen tagon's acting chief weapons buyer, Michael Wynne.
(Re uters 08:38 PM ET 09/11/2003)

Mor e:
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O n Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wro te in Message-Id: :

Th e U.S. Air Force on Monday said it expected to respond by early
ne xt week to a letter from the Senate Armed Services Committee
pr oposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"W e're in the process of preparing our letter," said Air Force
sp okeswoman Gloria Cales. "We should have our response pulled
to gether later this week or early next week." Cales gave no
de tails, but Air Force acquisitions chief Marvin Sambur last
we ek said it would be "significantly more expensive" to lease
fe wer airplanes, due to lost volume discounts and the impact of
in flation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(R euters 06:17 PM ET 09/08/2003)

Mo
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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wr ote in Message-Id: :

S en. John McCain, who has criticized the cost of a U.S. Air Force
p roposal to lease BOEING CO. 767s as refueling tankers, said on
F riday he would press Air Force Secretary James Roche and other
t op Pentagon officials to hand over all records on the deal.
" We'll be asking for as much information as we can get," McCain
s aid in a telephone interview, 1 day after the Senate Armed
S ervices Committee on which he serves delayed an expected vote
o n a $22.4 billion lease-to-buy plan.
( Reuters 04:23 PM ET 09/05/2003)

M o
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= ================================================== =============


O n Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
w rote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

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


On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23

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



On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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

On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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


On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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

On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21

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



Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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


On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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


On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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


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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os046 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvhusa :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtfbrj :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6hrje :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u4ia :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfaelrag :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptme3g :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.392147 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94 ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
----------------------------------------------------------------


On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1
0



On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:


Boeing Co (BA) (44.41 +1.27)

Plans for the U.S. Air Force to lease BOEING CO. 767 commercial
aircraft as aerial refueling tankers is an expensive solution
that could actually cut overall fuel capacity, according to a
White House analysis obtained on Tuesday. Office of Management
and Budget Director Mitch Daniels said leasing the 100 767s to
start replacing a 40-year-old fleet of KC-135 tankers would
cost up to $26 billion and result in a slightly smaller overall
fuel capacity. A $3.2 billion upgrade of 126 KC-135s would
increase fleet capacity by a similar amount but the Air Force
had not chosen this route, Daniels said in a letter to leasing
critic, Arizona Republican Sen. John McCain.
(Reuters 07:52 PM ET 05/07/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205
07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,

  #73  
Old July 18th 04, 03:27 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
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BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
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----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

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

Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=969...a&s=rb0406 08

----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

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

On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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----------------------------------------------------------------
On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

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



BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19

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

On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

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

Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

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

The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

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


U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

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

On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

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

U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------
On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07

======================================== ========================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

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


On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
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----------------------------------------------------------------
On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16

----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26

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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03

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

Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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


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

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

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


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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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

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


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

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

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

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

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

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


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

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

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


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

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

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

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

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

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

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


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

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

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

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

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

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

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

The nonpartisan U.S. Congressional Research Service raised new
doub ts on Wednesday about a fresh Pentagon push to acquire
BOEI NG CO. 767 aircraft as midair refueling tankers through a
leas e. The research service said the Defense Department's
late st proposal bolstered the case for purchasing the aircraft
outrig ht, rather than leasing them first in a deal valued at
$22. 4 billion. Earlier this month the Senate Armed Services
Commit tee put off what was to have been a final vote on the
leas e proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
down from the 100 sought by the Air Force.
(Reute rs 07:46 PM ET 10/01/2003)

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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wrot e in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
dea l for BOEING CO. in the face of tough questions from Senate
aides . Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Micha el Zettler, deputy chief of staff for installations and
logis tics, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
simil ar -- and equally contentious -- briefing for Senate
profe ssional staffers on Friday, aides said. Despite the
las t-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
contr oversial lease deal this week, putting off any action
unt il at least mid-October, after a one-week recess. The
commi ttee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reut ers 08:08 PM ET 09/29/2003)

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On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wro te in Message-Id: :


Sena te Armed Services Committee member John McCain, who helped
stal l a $22.4 billion Air Force plan to lease then buy BOEING
CO . tankers, rejected as "non-responsive" a modified Defense
Depa rtment proposal. The Pentagon still has "not adequately
just ified spending what it now acknowledges will be billions of
doll ars more to acquire tankers through a lease," McCain, an
Ariz ona Republican, said in letters to the armed services
pane l's leaders. McCain's new qualms could translate into
furt her delays for the tanker deal -- a plan to lease a major
weap ons system for the first time rather than buy it outright.
(Reu ters 04:53 PM ET 09/25/2003)

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Th e Pentagon's inspector general may issue a subpoena to BOEING
CO . and the U.S. Air Force for all written materials on a $22.4
bill ion deal to lease then buy 100 Boeing 767 tankers,
cong ressional and administration sources said on Monday. They
sa id Inspector General Joseph Schmitz is considering the
unus ual move as he investigates possible impropriety in the
leas e proposal that critics including U.S. Sen. John McCain
ha ve blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
docu ments provided by Boeing to Senate Commerce Committee
Chai rman McCain, an Arizona Republican. But investigators,
incl uding an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reu ters 05:40 PM ET 09/22/2003)

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Boei ng Co (BA) (35.15 +0.26)

Th e Pentagon urged senators to approve a modified $22.4 billion
de al to lease, then buy, 100 BOEING CO. 767 tankers, seeking
auth ority to buy 26 of the tankers before their 6-year leases
expi re to pare total program costs by $1.2 billion. Deputy
Defe nse Secretary Paul Wolfowitz said buying the 26 tankers
earl y, between 2008 and 2010, would add $2.4 billion in initial
budg et costs while lowering total program costs and allowing the
Ai r Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
co st of the program, the additional funds needed ... and the
deli very schedule for the new capability," he told the Senate
Arme d Services Committee, the last of four congressional panels
th at must vote on the lease deal.
(Reu ters 02:53 PM ET 09/23/2003)

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On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrot e in Message-Id: :


T he Pentagon's inspector general has told Congress he plans a
for mal investigation of possible impropriety involving the U.S.
A ir Force's $22.4 billion proposal to lease then buy BOEING 767
air craft as refueling tankers, a U.S. lawmaker said on
Wed nesday. The inspector general, Joseph Schmitz, has concluded
tha t "sufficient credible information exists to warrant" a
for mal investigation, said Sen. John McCain, an Arizona
Rep ublican who has denounced the lease proposal as a sweetheart
dea l for Boeing. "Up to now, it appears that the interests of
tax payers have been subordinated to those of Boeing," McCain
sai d in disclosing the upgraded probe. In recent weeks, the
Pen tagon's in-house watchdog has carried out a preliminary
inq uiry into, among other things, whether an Air Force official
gav e Boeing proprietary pricing data from Airbus, a rival for
t he deal, Congressional staffmembers said.
(Re uters 10:50 PM ET 09/17/2003)

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Pre sident George W. Bush backed a controversial Air Force plan to
lea se BOEING 767 aircraft as refueling tankers despite criticism
fro m Congress, according to an interview. "I do support it," he
sai d in an interview with the Seattle Post-Intelligencer and
oth er regional newspapers. Senate Armed Services Committee
Cha irman John Warner, a Virginia Republican, and Carl Levin of
Mic higan, the panel's top Democrat, have asked Defense
Sec retary Donald Rumsfeld to consider slashing the Air Force
pro posal to lease and then buy 100 767s for $22.4 billion. The
sen ators have suggested leasing no more than 25 767s while
get ting the rest of any needed tankers through standard
pur chase procedures. Air Force Secretary James Roche said the
A ir Force was still working on a lease-to-own deal, a possible
ref erence to the up to 25 aircraft that Warner and Levin have
sug gested.
(Re uters 01:34 PM ET 09/17/2003)

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O n Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wro te in Message-Id: :

Se n. John McCain said that BOEING CO. appeared to have improperly
sl anted the Pentagon process that led to its troubled $22.4
bi llion plan to lease then sell modified refueling tankers to
th e Air Force. "To the extent that Boeing did so, its conduct
mi ght have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Sc hmitz, the Defense Department inspector general, to expand an
in quiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Do nald Rumsfeld to provide all records relating to the lease
pr oposal from both Air Force Secretary James Roche and the
Pe ntagon's acting chief weapons buyer, Michael Wynne.
(R euters 08:38 PM ET 09/11/2003)

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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wr ote in Message-Id: :

T he U.S. Air Force on Monday said it expected to respond by early
n ext week to a letter from the Senate Armed Services Committee
p roposing a scaled-down lease of 25 BOEING CO. 767s tankers.
" We're in the process of preparing our letter," said Air Force
s pokeswoman Gloria Cales. "We should have our response pulled
t ogether later this week or early next week." Cales gave no
d etails, but Air Force acquisitions chief Marvin Sambur last
w eek said it would be "significantly more expensive" to lease
f ewer airplanes, due to lost volume discounts and the impact of
i nflation. Once the Air Force completed its response, it would
g o to Defense Secretary Donald Rumsfeld for approval, she said.
( Reuters 06:17 PM ET 09/08/2003)

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O n Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
w rote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

Mo
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On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
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On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26

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

On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23

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



On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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

On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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


On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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

On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21

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



Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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


On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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


On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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


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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fki :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os04 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvhus :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtfbr :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6hrj :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u4i :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfaelra :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptme3 :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
t (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.39214 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e9 ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

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On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

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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

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07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


  #74  
Old July 20th 04, 01:56 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


A decision on a potential shutdown of Boeing 767 jet production
will probably need to be made by next spring, the president of
BOEING CO.'s commercial plane division said. "We have around 24
767s in our backlog ... so we probably need to make a decision
in the spring of next year about what we do with the 767 line,"
said Boeing Commercial Airplanes President Alan Mulally.
"Clearly the plan is to replace the 767 line with the 7E7."
Mulally said the U.S. Air Force would be working through
various evaluations of a proposed U.S. air refueling tanker in
the meantime. The company still hopes it will meet the
requirements of the program, he said. U.S. Defense Secretary
Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to
sell and lease the Air Force an initial 100 tankers based on
the 767 commercial platform.
(Reuters 07:20 AM ET 07/19/2004)

Mo
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On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera
wrote:


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
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BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
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----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

Mo
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Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
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======================================= =========================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
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On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06

----------------------------------------------------------------
On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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----------------------------------------------------------------
On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16

----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

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

On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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

On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03

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

Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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


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

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

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


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

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


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


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

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


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

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

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


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


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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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

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

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

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

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


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

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

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


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

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

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

Bad blood between the U.S. Congress and the Pentagon has taken a
toll on BOEING CO.'s multibillion-dollar drive to lease
jetline rs to the Air Force as refueling planes, congressional
officia ls and private analysts said on Friday. The Boeing issue
laid bare growing strains between Defense Secretary Donald
Rumsfel d and his top lieutenants, on the one hand, and the two
most powerful Republicans on the Senate Armed Services
Committee , on the other. Among other things, the chill reflects
pique at what officials on both sides of the aisle deem
Rumsfeld' s sometimes-dismissive approach to Congress, for
instanc e on the situation in post-war Iraq. But it also
reflect s perceived slights to Armed Services Committee Chairman
John Warner of Virginia, Congress's top overseer of the Defense
Departmen t, and the panel's second-ranking Republican, John
McCain of Arizona.
(Reuter s 06:20 PM ET 10/24/2003)

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


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

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


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

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


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

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


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

The top Democrat on the House of Representatives' Armed Services
Committ ee said he was having second thoughts on a $22.4 billion
Air Force plan to lease then buy BOEING Co. refueling planes,
citin g studies that have challenged its financial soundness. "I
think it would be useful to bring members up to date on the many
repor ts and studies that have emerged since our hearings on the
issue ," Rep. Ike Skelton of Missouri wrote panel chairman
Dunca n Hunter, R-Calif., on Wednesday. Studies by the
Congres sional Budget Office, General Accounting Office,
Institu te for Defense Analyses and Congressional Research
Servi ce have shown that acquiring the 100 modified Boeing 767
aircraf t initially through a lease, as the Air Force hopes to
do, would cost $5.5 billion more than buying them outright.
(Reuter s 12:53 PM ET 10/09/2003)

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

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

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

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

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

The nonpartisan U.S. Congressional Research Service raised new
doubt s on Wednesday about a fresh Pentagon push to acquire
BOEIN G CO. 767 aircraft as midair refueling tankers through a
lease . The research service said the Defense Department's
lates t proposal bolstered the case for purchasing the aircraft
outri ght, rather than leasing them first in a deal valued at
$22 .4 billion. Earlier this month the Senate Armed Services
Commi ttee put off what was to have been a final vote on the
lea se proposal. Chairman John Warner, a Virginia Republican,
and the committee's top Democrat, Carl Levin of Michigan, asked
the Pentagon for data on leasing no more than 25 Boeing 767s,
dow n from the 100 sought by the Air Force.
(Reut ers 07:46 PM ET 10/01/2003)

Mor e:
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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wro te in Message-Id: :


Ai r Force officials on Monday staunchly defended a $22.4 billion
ai r tanker lease agreement some critics say is a sweetheart
de al for BOEING CO. in the face of tough questions from Senate
aide s. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Mich ael Zettler, deputy chief of staff for installations and
logi stics, met with military legislative aides hoping to pave
th e way for approval by the Senate Armed Services Committee of
th e plan to lease then buy 100 Boeing 767 tankers. They held a
simi lar -- and equally contentious -- briefing for Senate
prof essional staffers on Friday, aides said. Despite the
la st-minute push by the Air Force, Senate aides said they did
no t expect the Senate Armed Services Committee to vote on the
cont roversial lease deal this week, putting off any action
unti l at least mid-October, after a one-week recess. The
comm ittee is the final of four congressional panels to review
th e deal. The other three have approved it.
(Reu ters 08:08 PM ET 09/29/2003)

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


On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrot e in Message-Id: :


Sen ate Armed Services Committee member John McCain, who helped
sta ll a $22.4 billion Air Force plan to lease then buy BOEING
C O. tankers, rejected as "non-responsive" a modified Defense
Dep artment proposal. The Pentagon still has "not adequately
jus tified spending what it now acknowledges will be billions of
dol lars more to acquire tankers through a lease," McCain, an
Ari zona Republican, said in letters to the armed services
pan el's leaders. McCain's new qualms could translate into
fur ther delays for the tanker deal -- a plan to lease a major
wea pons system for the first time rather than buy it outright.
(Re uters 04:53 PM ET 09/25/2003)

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



T he Pentagon's inspector general may issue a subpoena to BOEING
C O. and the U.S. Air Force for all written materials on a $22.4
bil lion deal to lease then buy 100 Boeing 767 tankers,
con gressional and administration sources said on Monday. They
sai d Inspector General Joseph Schmitz is considering the
unu sual move as he investigates possible impropriety in the
lea se proposal that critics including U.S. Sen. John McCain
hav e blasted as a sweetheart deal for Boeing. The Pentagon's
i n-house watchdog agency kicked off its investigation based on
doc uments provided by Boeing to Senate Commerce Committee
Cha irman McCain, an Arizona Republican. But investigators,
inc luding an FBI agent, want to see a complete and full record
o f documents related to the case, the sources said.
(Re uters 05:40 PM ET 09/22/2003)

Mor e:
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Boe ing Co (BA) (35.15 +0.26)

T he Pentagon urged senators to approve a modified $22.4 billion
dea l to lease, then buy, 100 BOEING CO. 767 tankers, seeking
aut hority to buy 26 of the tankers before their 6-year leases
exp ire to pare total program costs by $1.2 billion. Deputy
Def ense Secretary Paul Wolfowitz said buying the 26 tankers
ear ly, between 2008 and 2010, would add $2.4 billion in initial
bud get costs while lowering total program costs and allowing the
A ir Force to immediately begin modernizing its 43-year-old fleet
o f KC-135 tankers. "The optimum approach must balance the total
cos t of the program, the additional funds needed ... and the
del ivery schedule for the new capability," he told the Senate
Arm ed Services Committee, the last of four congressional panels
tha t must vote on the lease deal.
(Re uters 02:53 PM ET 09/23/2003)

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


O n Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wro te in Message-Id: :


Th e Pentagon's inspector general has told Congress he plans a
fo rmal investigation of possible impropriety involving the U.S.
Ai r Force's $22.4 billion proposal to lease then buy BOEING 767
ai rcraft as refueling tankers, a U.S. lawmaker said on
We dnesday. The inspector general, Joseph Schmitz, has concluded
th at "sufficient credible information exists to warrant" a
fo rmal investigation, said Sen. John McCain, an Arizona
Re publican who has denounced the lease proposal as a sweetheart
de al for Boeing. "Up to now, it appears that the interests of
ta xpayers have been subordinated to those of Boeing," McCain
sa id in disclosing the upgraded probe. In recent weeks, the
Pe ntagon's in-house watchdog has carried out a preliminary
in quiry into, among other things, whether an Air Force official
ga ve Boeing proprietary pricing data from Airbus, a rival for
th e deal, Congressional staffmembers said.
(R euters 10:50 PM ET 09/17/2003)

Mo
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Pr esident George W. Bush backed a controversial Air Force plan to
le ase BOEING 767 aircraft as refueling tankers despite criticism
fr om Congress, according to an interview. "I do support it," he
sa id in an interview with the Seattle Post-Intelligencer and
ot her regional newspapers. Senate Armed Services Committee
Ch airman John Warner, a Virginia Republican, and Carl Levin of
Mi chigan, the panel's top Democrat, have asked Defense
Se cretary Donald Rumsfeld to consider slashing the Air Force
pr oposal to lease and then buy 100 767s for $22.4 billion. The
se nators have suggested leasing no more than 25 767s while
ge tting the rest of any needed tankers through standard
pu rchase procedures. Air Force Secretary James Roche said the
Ai r Force was still working on a lease-to-own deal, a possible
re ference to the up to 25 aircraft that Warner and Levin have
su ggested.
(R euters 01:34 PM ET 09/17/2003)

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wr ote in Message-Id: :

S en. John McCain said that BOEING CO. appeared to have improperly
s lanted the Pentagon process that led to its troubled $22.4
b illion plan to lease then sell modified refueling tankers to
t he Air Force. "To the extent that Boeing did so, its conduct
m ight have constituted an organizational conflict of interest
o r anti-competitive behavior," he said in pressing Joseph
S chmitz, the Defense Department inspector general, to expand an
i nquiry into the matter. In a separate letter, McCain, a member
o f the Armed Services Committee, called on Defense Secretary
D onald Rumsfeld to provide all records relating to the lease
p roposal from both Air Force Secretary James Roche and the
P entagon's acting chief weapons buyer, Michael Wynne.
( Reuters 08:38 PM ET 09/11/2003)

M o
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O n Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
w rote in Message-Id: :

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

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


On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03

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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04

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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26

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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23

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On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
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Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
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
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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
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===================== ===========================================


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
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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

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On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

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On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

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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

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07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


  #75  
Old August 12th 04, 07:35 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


Federal prosecutors have canceled an Aug. 11 hearing at which
former BOEING CO. CFO Michael Sears planned to plead guilty to
aiding and abetting the hiring of a former Air Force official
while she was overseeing a huge Boeing contract. Sam Dibbley,
spokeswoman for U.S. attorney Paul McNulty, said the hearing
was removed from the docket of the U.S. District Court in
Alexandria, Va., but declined to explain the decision by
prosecutors. A source familiar with the case said he believed
Sears' plea agreement with the government was still intact.
Dibbley said a sentencing hearing for Darleen Druyun, the
former Air Force official who pleaded guilty to one felony
count of conspiracy in April, remained scheduled for Sept. 3.
Jamie Wareham, an attorney for Michael Sears, declined comment
on the case.
(Reuters 11:58 AM ET 08/10/2004)

Mo
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On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera
wrote in ::


The sentencing of a former U.S. Air Force official who admitted
illegally negotiating a job with BOEING CO. while overseeing
its contracts has been postponed until Sept. 3, court papers
showed on Wednesday. Darleen Druyun, the former No. 2 Air Force
acquisitions official, pleaded guilty in April to conspiracy for
discussing the job with Boeing before she disqualified herself
from overseeing the company's dealings with the Air Force,
including a multibillion dollar deal to lease 100 767 refueling
tankers. Papers filed with the U.S. District Court in
Alexandria, Va., showed Druyun's sentencing had been
rescheduled. A source familiar with the case said the
sentencing was delayed until after Aug. 11 when former Boeing
CFO Michael Sears is due to enter a plea to a criminal charge
related to the job discussions. Sears plans to plead guilty to
one charge of aiding and abetting Druyun's hiring, another
source said on condition of anonymity. Druyun and Sears both
face a maximum fine of $250,000 and five years in prison,
although federal sentencing guidelines will likely limit the
fines and jail terms in both cases.
(Reuters 03:27 PM ET 07/28/2004)

Mo
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Former BOEING CO. CFO Michael Sears will enter a guilty plea to a
criminal charge at a hearing in federal district court on Aug.
11, a source familiar with the case said on Tuesday. The source
said Sears plans to plead guilty to one charge of aiding and
abetting the hiring of former Air Force official Darleen Druyun
while she was still overseeing a $23.5 billion Air Force deal to
lease Boeing tankers. Druyun, who pleaded guilty to one felony
count of conspiracy in April, was due to be sentenced on Aug.
6. There was a chance Druyun's sentencing would be postponed
until after Sears enters his plea a week later, the source said.
(Reuters 08:50 PM ET 07/27/2004)

Mo
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A former BOEING CO. executive will plead guilty to a criminal
charge related to the hiring of an Air Force official who
oversaw a Boeing contract to supply refueling jets to the
military, a source familiar with the plea agreement said.
Former CFO Michael Sears will plead guilty to one charge of
aiding and abetting the hiring of Darleen Druyun, who worked on
Boeing's negotiations to lease 100 767 tankers to the military,
the source said. Sears is expected to enter his plea next week
or soon after in U.S. District Court in Alexandria, Virginia,
the source said. He faced charges of "aiding and abetting acts
affecting a personal financial interest," according to court
documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul
McNulty, declined to comment.
(Reuters 04:17 PM ET 07/26/2004)

Mo
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On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera
wrote in ::


BOEING CO. does not foresee a charge to earnings over the stalled
$23.5 billion U.S. military air tanker deal, said Jim Albaugh,
chief executive of the company's defense business. In an
interview, Albaugh said the company continued to believe the
deal for the Air Force to acquire an initial 100 modified 767
air refuelling tankers will succeed, although the form is
uncertain. Boeing's most recent comments call for a deal to be
made in the spring of 2005. Albaugh told Reuters his guess was
that the deal will revert to a total purchase arrangement.
(Reuters 08:51 AM ET 07/22/2004)

Mo
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----------------------------------------------------------------On
Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote:


A decision on a potential shutdown of Boeing 767 jet production
will probably need to be made by next spring, the president of
BOEING CO.'s commercial plane division said. "We have around 24
767s in our backlog ... so we probably need to make a decision
in the spring of next year about what we do with the 767 line,"
said Boeing Commercial Airplanes President Alan Mulally.
"Clearly the plan is to replace the 767 line with the 7E7."
Mulally said the U.S. Air Force would be working through
various evaluations of a proposed U.S. air refueling tanker in
the meantime. The company still hopes it will meet the
requirements of the program, he said. U.S. Defense Secretary
Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to
sell and lease the Air Force an initial 100 tankers based on
the 767 commercial platform.
(Reuters 07:20 AM ET 07/19/2004)

Mo
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On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera
wrote:


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
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BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
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----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

Mo
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Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10

----------------------------------------------------------------
On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10

----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07

==================================== ============================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 04

----------------------------------------------------------------
The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03

----------------------------------------------------------------
On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15

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


On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06

----------------------------------------------------------------
On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17

----------------------------------------------------------------
On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16

----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

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


The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

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

On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03

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

Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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

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

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


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

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

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

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

Mo
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Boeing Co (BA) (38.02 -0.37)

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

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

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

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


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

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

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

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


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

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

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

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

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

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

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


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

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

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


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

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

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

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

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


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

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


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

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


The U.S. Air Force urged lawmakers to approve its plan to lease
100 BOEING CO. 767 refueling planes despite three new
congr essional reports poking holes in what would be the first
suc h rental of a major weapons system. "The Air Force is hoping
tha t the Senate Armed Services Committee will approve our
origi nal proposal to lease 100 tankers," said a spokeswoman,
Maj or Karen Finn. "The Air Force really needs this capability."
The Armed Services Committee is alone among the four military
overs ight panels that has yet to approve the deal, designed to
acqui re the tankers without significant upfront funding that
wou ld squeeze other combat priorities. The service defended the
lea se a day after the Congressional Budget Office found
taxpa yers could reap $6.7 billion in savings with an outright
purch ase, which is standard procurement procedure for arms
syste ms.
(Reut ers 04:21 PM ET 10/17/2003)

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


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

Th e top Democrat on the House of Representatives' Armed Services
Comm ittee said he was having second thoughts on a $22.4 billion
Ai r Force plan to lease then buy BOEING Co. refueling planes,
citi ng studies that have challenged its financial soundness. "I
thin k it would be useful to bring members up to date on the many
repo rts and studies that have emerged since our hearings on the
issu e," Rep. Ike Skelton of Missouri wrote panel chairman
Dunc an Hunter, R-Calif., on Wednesday. Studies by the
Cong ressional Budget Office, General Accounting Office,
Inst itute for Defense Analyses and Congressional Research
Serv ice have shown that acquiring the 100 modified Boeing 767
airc raft initially through a lease, as the Air Force hopes to
do , would cost $5.5 billion more than buying them outright.
(Reu ters 12:53 PM ET 10/09/2003)

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Th e House of Representatives' Appropriations Committee voted to
pres s ahead with a $22.4 billion proposal to lease then buy
BOEI NG CO. 737s as Air Force refueling planes. But the move to
leas e 100 modified 767s as mid-air tankers starting in 2006 --
iden tical to a Senate appropriations measure -- highlighted
misg ivings about the deal among what appeared to be a growing
numb er of lawmakers. The panel shot down, 33 to 28, a rival
plan , jokingly introduced by its top Democrat, David Obey of
Wisc onsin, that would have earmarked $14 billion to start
buyi ng the aircraft outright rather than leasing them first.
"I f you want to save the taxpayers money, the best way is to
bu y them now," Obey said in bating colleagues to own up to the
leas e's extra costs and exercise what he portrayed as fiscal
resp onsibility.
(Reu ters 03:16 PM ET 10/09/2003)

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

N ew questions emerged about the personal ties between BOEING CO.
a nd Darleen Druyun, a former top Air Force official who got a
j ob with the company after helping negotiate a multibillion
dol lar deal to lease Boeing 767s as airborne refueling tankers.
T he National Legal and Policy Center, a conservative nonprofit
gro up opposing the lease deal, released public records that
sho w Druyun agreed to sell her Virginia home to a senior Boeing
att orney while still working for the Air Force as a procurement
off icial. She had been deputy assistant secretary for Air Force
acq uisition and management. The group also said Druyun's
dau ghter and son-in-law both work for Boeing, a fact confirmed
b y the Chicago-based company.
(Re uters 03:18 PM ET 10/07/2003)

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

O n Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
wro te in Message-Id: :

Th e nonpartisan U.S. Congressional Research Service raised new
do ubts on Wednesday about a fresh Pentagon push to acquire
BO EING CO. 767 aircraft as midair refueling tankers through a
le ase. The research service said the Defense Department's
la test proposal bolstered the case for purchasing the aircraft
ou tright, rather than leasing them first in a deal valued at
$2 2.4 billion. Earlier this month the Senate Armed Services
Co mmittee put off what was to have been a final vote on the
le ase proposal. Chairman John Warner, a Virginia Republican,
an d the committee's top Democrat, Carl Levin of Michigan, asked
th e Pentagon for data on leasing no more than 25 Boeing 767s,
do wn from the 100 sought by the Air Force.
(R euters 07:46 PM ET 10/01/2003)

Mo
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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wr ote in Message-Id: :


A ir Force officials on Monday staunchly defended a $22.4 billion
a ir tanker lease agreement some critics say is a sweetheart
d eal for BOEING CO. in the face of tough questions from Senate
a ides. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
M ichael Zettler, deputy chief of staff for installations and
l ogistics, met with military legislative aides hoping to pave
t he way for approval by the Senate Armed Services Committee of
t he plan to lease then buy 100 Boeing 767 tankers. They held a
s imilar -- and equally contentious -- briefing for Senate
p rofessional staffers on Friday, aides said. Despite the
l ast-minute push by the Air Force, Senate aides said they did
n ot expect the Senate Armed Services Committee to vote on the
c ontroversial lease deal this week, putting off any action
u ntil at least mid-October, after a one-week recess. The
c ommittee is the final of four congressional panels to review
t he deal. The other three have approved it.
( Reuters 08:08 PM ET 09/29/2003)

M o
http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29

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


O n Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
w rote in Message-Id: :


Senate Armed Services Committee member John McCain, who helped
stall a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Department proposal. The Pentagon still has "not adequately
justified spending what it now acknowledges will be billions of
dollars more to acquire tankers through a lease," McCain, an
Arizona Republican, said in letters to the armed services
panel's leaders. McCain's new qualms could translate into
further delays for the tanker deal -- a plan to lease a major
weapons system for the first time rather than buy it outright.
(Reuters 04:53 PM ET 09/25/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25

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



The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billion deal to lease then buy 100 Boeing 767 tankers,
congressional and administration sources said on Monday. They
said Inspector General Joseph Schmitz is considering the
unusual move as he investigates possible impropriety in the
lease proposal that critics including U.S. Sen. John McCain
have blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
documents provided by Boeing to Senate Commerce Committee
Chairman McCain, an Arizona Republican. But investigators,
including an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reuters 05:40 PM ET 09/22/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22

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Boeing Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking
authority to buy 26 of the tankers before their 6-year leases
expire to pare total program costs by $1.2 billion. Deputy
Defense Secretary Paul Wolfowitz said buying the 26 tankers
early, between 2008 and 2010, would add $2.4 billion in initial
budget costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cost of the program, the additional funds needed ... and the
delivery schedule for the new capability," he told the Senate
Armed Services Committee, the last of four congressional panels
that must vote on the lease deal.
(Reuters 02:53 PM ET 09/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23

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


On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wrote in Message-Id: :

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

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


On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
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On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
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On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
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On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
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Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
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On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fov :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreoj :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfa :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbp :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adelphi a.net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531s ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
----------------------------------------------------------------


On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1
0



On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:


Boeing Co (BA) (44.41 +1.27)

Plans for the U.S. Air Force to lease BOEING CO. 767 commercial
aircraft as aerial refueling tankers is an expensive solution
that could actually cut overall fuel capacity, according to a
White House analysis obtained on Tuesday. Office of Management
and Budget Director Mitch Daniels said leasing the 100 767s to
start replacing a 40-year-old fleet of KC-135 tankers would
cost up to $26 billion and result in a slightly smaller overall
fuel capacity. A $3.2 billion upgrade of 126 KC-135s would
increase fleet capacity by a similar amount but the Air Force
had not chosen this route, Daniels said in a letter to leasing
critic, Arizona Republican Sen. John McCain.
(Reuters 07:52 PM ET 05/07/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205
07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


  #76  
Old August 30th 04, 02:32 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



U.S. prosecutors are looking into possible improper
employment-related contacts between the head of BOEING CO.'s
defense unit and a high-ranking Air Force official, The Wall
Street Journal said, citing unnamed people familiar with the
matter. James Albaugh, chief executive of Chicago-based
Boeing's $27 billion military and space unit, has on numerous
occasions said he had no role in the hiring of the Air Force
official, Darleen Druyun, the newspaper said. Boeing fired
Druyun and CFO Michael Sears last November, saying they
violated company ethics by discussing a job before Druyun
stopped work on Boeing-related Air Force programs. On Dec. 1,
Boeing Chief Executive Phil Condit resigned amid the fallout.
Druyun pleaded guilty to conspiracy in April and agreed to
cooperate with prosecutors.
(Reuters 05:34 AM ET 08/27/2004)

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

Republican Sen. John McCain, a key critic of a stalled $23.5
billion Air Force deal to lease and buy 100 BOEING CO. aerial
refueling tankers, chided a top general for focusing on
corrosion problems with existing KC-135s tankers, which McCain
said had been disproved. The Arizona senator told Air Force
Gen. John Handy, commander of the Air Mobility Command, in a
letter made public by McCain's office on Wednesday that Handy's
comments in a recent U.S. News & World Report article were
perpetuating an argument for leasing rather than buying tankers
that had been "conclusively shown to be without merit." McCain
cited a recent Defense Science Board, which concluded there was
"no evidence that corrosion poses an imminent catastrophic
threat" to the KC-135s. That report, among others critical of
the proposed tanker lease deal, prompted Defense Secretary
Donald Rumsfeld to put off any decision on the deal until two
additional studies were completed in November, and Air Force
officials now say they do not expect a decision on the deal
until next year.
(Reuters 08:39 PM ET 08/25/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=996...a&s=rb0408 25

----------------------------------------------------------------
On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera
wrote in ::


Federal prosecutors have canceled an Aug. 11 hearing at which
former BOEING CO. CFO Michael Sears planned to plead guilty to
aiding and abetting the hiring of a former Air Force official
while she was overseeing a huge Boeing contract. Sam Dibbley,
spokeswoman for U.S. attorney Paul McNulty, said the hearing
was removed from the docket of the U.S. District Court in
Alexandria, Va., but declined to explain the decision by
prosecutors. A source familiar with the case said he believed
Sears' plea agreement with the government was still intact.
Dibbley said a sentencing hearing for Darleen Druyun, the
former Air Force official who pleaded guilty to one felony
count of conspiracy in April, remained scheduled for Sept. 3.
Jamie Wareham, an attorney for Michael Sears, declined comment
on the case.
(Reuters 11:58 AM ET 08/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=991...a&s=rb0408 10

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

On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera
wrote in ::


The sentencing of a former U.S. Air Force official who admitted
illegally negotiating a job with BOEING CO. while overseeing
its contracts has been postponed until Sept. 3, court papers
showed on Wednesday. Darleen Druyun, the former No. 2 Air Force
acquisitions official, pleaded guilty in April to conspiracy for
discussing the job with Boeing before she disqualified herself
from overseeing the company's dealings with the Air Force,
including a multibillion dollar deal to lease 100 767 refueling
tankers. Papers filed with the U.S. District Court in
Alexandria, Va., showed Druyun's sentencing had been
rescheduled. A source familiar with the case said the
sentencing was delayed until after Aug. 11 when former Boeing
CFO Michael Sears is due to enter a plea to a criminal charge
related to the job discussions. Sears plans to plead guilty to
one charge of aiding and abetting Druyun's hiring, another
source said on condition of anonymity. Druyun and Sears both
face a maximum fine of $250,000 and five years in prison,
although federal sentencing guidelines will likely limit the
fines and jail terms in both cases.
(Reuters 03:27 PM ET 07/28/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=986...a&s=rb0407 28

----------------------------------------------------------------
Former BOEING CO. CFO Michael Sears will enter a guilty plea to a
criminal charge at a hearing in federal district court on Aug.
11, a source familiar with the case said on Tuesday. The source
said Sears plans to plead guilty to one charge of aiding and
abetting the hiring of former Air Force official Darleen Druyun
while she was still overseeing a $23.5 billion Air Force deal to
lease Boeing tankers. Druyun, who pleaded guilty to one felony
count of conspiracy in April, was due to be sentenced on Aug.
6. There was a chance Druyun's sentencing would be postponed
until after Sears enters his plea a week later, the source said.
(Reuters 08:50 PM ET 07/27/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=985...a&s=rb0407 27

----------------------------------------------------------------
A former BOEING CO. executive will plead guilty to a criminal
charge related to the hiring of an Air Force official who
oversaw a Boeing contract to supply refueling jets to the
military, a source familiar with the plea agreement said.
Former CFO Michael Sears will plead guilty to one charge of
aiding and abetting the hiring of Darleen Druyun, who worked on
Boeing's negotiations to lease 100 767 tankers to the military,
the source said. Sears is expected to enter his plea next week
or soon after in U.S. District Court in Alexandria, Virginia,
the source said. He faced charges of "aiding and abetting acts
affecting a personal financial interest," according to court
documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul
McNulty, declined to comment.
(Reuters 04:17 PM ET 07/26/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=984...a&s=rb0407 26

----------------------------------------------------------------
On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera
wrote in ::


BOEING CO. does not foresee a charge to earnings over the stalled
$23.5 billion U.S. military air tanker deal, said Jim Albaugh,
chief executive of the company's defense business. In an
interview, Albaugh said the company continued to believe the
deal for the Air Force to acquire an initial 100 modified 767
air refuelling tankers will succeed, although the form is
uncertain. Boeing's most recent comments call for a deal to be
made in the spring of 2005. Albaugh told Reuters his guess was
that the deal will revert to a total purchase arrangement.
(Reuters 08:51 AM ET 07/22/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=983...a&s=rb0407 22

----------------------------------------------------------------On
Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote:


A decision on a potential shutdown of Boeing 767 jet production
will probably need to be made by next spring, the president of
BOEING CO.'s commercial plane division said. "We have around 24
767s in our backlog ... so we probably need to make a decision
in the spring of next year about what we do with the 767 line,"
said Boeing Commercial Airplanes President Alan Mulally.
"Clearly the plan is to replace the 767 line with the 7E7."
Mulally said the U.S. Air Force would be working through
various evaluations of a proposed U.S. air refueling tanker in
the meantime. The company still hopes it will meet the
requirements of the program, he said. U.S. Defense Secretary
Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to
sell and lease the Air Force an initial 100 tankers based on
the 767 commercial platform.
(Reuters 07:20 AM ET 07/19/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=981...a&s=rb0407 19

----------------------------------------------------------------
On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera
wrote:


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=979...a&s=rb0407 14

----------------------------------------------------------------
BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=978...a&s=rb0407 12

----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=970...a&s=rb0406 10
------------------------------------------------------------------------

Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

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Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
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=================================== =============================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
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On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
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On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
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----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
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----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
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On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
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Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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

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

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


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

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

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

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

Mo
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Boeing Co (BA) (38.02 -0.37)

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

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

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

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

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


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

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

Senate Armed Services Committee member John McCain moved on
Thursday to force disclosure of Pentagon records on a
multibilli on-dollar plan to acquire 100 BOEING CO. 767s as
refuelin g planes. In a letter to committee chairman John
Warner, McCain linked his quest to the fate of Michael Wynne,
Presiden t Bush's choice to be the Pentagon's new chief weapons
buyer. "I respectfully suggest that the Defense Department"
produce records sought for oversight of the Boeing deal "as the
committe e prepares to consider Mr. Wynne's nomination," McCain
wrote. At a confirmation hearing for Wynne on Tuesday, Warner,
a Virginia Republican; Carl Levin of Michigan, the panel's top
Democrat ; and McCain, an Arizona Republican, voiced concern
over Deputy Defense Secretary Paul Wolfowitz's refusal to hand
over documents at issue.
(Reuters 08:26 PM ET 11/20/2003)

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


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

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

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

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

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

Congress ional conferees have approved a multibillion-dollar
compromi se plan for the Air Force to acquire 100 BOEING CO.
refuelin g aircraft, leasing the first 20 of them, the House of
Represen tatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
servic es panels agreed the remaining 80 would be bought. The
leases will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmar ks $400 billion for the Defense Department and national
securi ty programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defens e Department will be required to conduct and report on an
independ ent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reute rs 10:08 AM ET 11/07/2003)

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


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


The Pentagon, bowing to critics, said it would lease just 20
plane s under a multibillion-dollar plan to acquire 100 BOEING
CO. jetliners for use as refueling tankers, buying the rest
outrigh t. If approved by lawmakers, as now expected, the deal
would mark the first lease, rather than purchase, of a major
weapo ns system. It has roiled Congress for 2 years over charges
the Air Force was giving Boeing a sweetheart deal at taxpayer
expense . Originally, the Air Force had sought to lease all 100
tankers , derived from Boeing's commercial 767, and then planned
to buy them in a deal costing at least $22.4 billion through
2017. Under the new proposal, the Air Force would start
replaci ng its KC-135E tanker fleet, which average 43 years old,
with leased KC-767A planes tankers in 2006.
(Reuter s 03:16 PM ET 11/06/2003)

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

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


Defens e Secretary Donald Rumsfeld said he would "dearly love"
Congre ss to strike a deal that would let the Air Force acquire
new BOEING CO. 767s as refueling planes. He seemed to signal
accept ance of a scaled-back lease proposed by the Senate Armed
Servic es Committee, alone among four congressional oversight
pane ls to spurn the original plan, valued at more than $22
billio n, to lease then buy 100 planes. "Political compromise is
what we do when the marbles have been divided and it's to be
expect ed," Rumsfeld told reporters at the Pentagon. The Senate
pane l has proposed acquiring up to 100 planes by leasing 20 and
buyi ng the rest -- a compromise formula designed to save
billio ns.
(Reute rs 04:28 PM ET 10/30/2003)

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

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

Bad blood between the U.S. Congress and the Pentagon has taken a
tol l on BOEING CO.'s multibillion-dollar drive to lease
jetli ners to the Air Force as refueling planes, congressional
offic ials and private analysts said on Friday. The Boeing issue
lai d bare growing strains between Defense Secretary Donald
Rumsf eld and his top lieutenants, on the one hand, and the two
mos t powerful Republicans on the Senate Armed Services
Commi ttee, on the other. Among other things, the chill reflects
piq ue at what officials on both sides of the aisle deem
Rumsf eld's sometimes-dismissive approach to Congress, for
insta nce on the situation in post-war Iraq. But it also
refle cts perceived slights to Armed Services Committee Chairman
Joh n Warner of Virginia, Congress's top overseer of the Defense
Depar tment, and the panel's second-ranking Republican, John
McCai n of Arizona.
(Reut ers 06:20 PM ET 10/24/2003)

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


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

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


The Senate Commerce Committee plans another hearing next week on
a controversial multibillion-dollar Air Force proposal to lease
100 BOEING CO. 767 tankers, as the Senate Armed Services
Commi ttee continues weigh its options, including approving a
scale d-down lease. The armed services panel, chaired by
Virgi nia Republican Sen. John Warner, is the last of four
commi ttees that must approve the lease deal -- which the Air
For ce says it needs to begin replacing its fleet of aging
midai r refueling tankers without incurring significant upfront
fundi ng costs. Warner is under considerable political pressure
to approve the lease deal, but aides said the latest reports
onl y underscored his concerns about the higher cost of leasing.
(Reut ers 06:49 PM ET 10/21/2003)

Mor e:
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On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wro te in Message-Id: :


Th e U.S. Air Force urged lawmakers to approve its plan to lease
10 0 BOEING CO. 767 refueling planes despite three new
cong ressional reports poking holes in what would be the first
su ch rental of a major weapons system. "The Air Force is hoping
th at the Senate Armed Services Committee will approve our
orig inal proposal to lease 100 tankers," said a spokeswoman,
Majo r Karen Finn. "The Air Force really needs this capability."
Th e Armed Services Committee is alone among the four military
over sight panels that has yet to approve the deal, designed to
acqu ire the tankers without significant upfront funding that
woul d squeeze other combat priorities. The service defended the
leas e a day after the Congressional Budget Office found
taxp ayers could reap $6.7 billion in savings with an outright
purc hase, which is standard procurement procedure for arms
syst ems.
(Reu ters 04:21 PM ET 10/17/2003)

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

T he top Democrat on the House of Representatives' Armed Services
Com mittee said he was having second thoughts on a $22.4 billion
A ir Force plan to lease then buy BOEING Co. refueling planes,
cit ing studies that have challenged its financial soundness. "I
thi nk it would be useful to bring members up to date on the many
rep orts and studies that have emerged since our hearings on the
iss ue," Rep. Ike Skelton of Missouri wrote panel chairman
Dun can Hunter, R-Calif., on Wednesday. Studies by the
Con gressional Budget Office, General Accounting Office,
Ins titute for Defense Analyses and Congressional Research
Ser vice have shown that acquiring the 100 modified Boeing 767
air craft initially through a lease, as the Air Force hopes to
d o, would cost $5.5 billion more than buying them outright.
(Re uters 12:53 PM ET 10/09/2003)

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T he House of Representatives' Appropriations Committee voted to
pre ss ahead with a $22.4 billion proposal to lease then buy
BOE ING CO. 737s as Air Force refueling planes. But the move to
lea se 100 modified 767s as mid-air tankers starting in 2006 --
ide ntical to a Senate appropriations measure -- highlighted
mis givings about the deal among what appeared to be a growing
num ber of lawmakers. The panel shot down, 33 to 28, a rival
pla n, jokingly introduced by its top Democrat, David Obey of
Wis consin, that would have earmarked $14 billion to start
buy ing the aircraft outright rather than leasing them first.
" If you want to save the taxpayers money, the best way is to
b uy them now," Obey said in bating colleagues to own up to the
lea se's extra costs and exercise what he portrayed as fiscal
res ponsibility.
(Re uters 03:16 PM ET 10/09/2003)

Mor e:
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O n Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
wro te in Message-Id: :

Ne w questions emerged about the personal ties between BOEING CO.
an d Darleen Druyun, a former top Air Force official who got a
jo b with the company after helping negotiate a multibillion
do llar deal to lease Boeing 767s as airborne refueling tankers.
Th e National Legal and Policy Center, a conservative nonprofit
gr oup opposing the lease deal, released public records that
sh ow Druyun agreed to sell her Virginia home to a senior Boeing
at torney while still working for the Air Force as a procurement
of ficial. She had been deputy assistant secretary for Air Force
ac quisition and management. The group also said Druyun's
da ughter and son-in-law both work for Boeing, a fact confirmed
by the Chicago-based company.
(R euters 03:18 PM ET 10/07/2003)

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

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

T he nonpartisan U.S. Congressional Research Service raised new
d oubts on Wednesday about a fresh Pentagon push to acquire
B OEING CO. 767 aircraft as midair refueling tankers through a
l ease. The research service said the Defense Department's
l atest proposal bolstered the case for purchasing the aircraft
o utright, rather than leasing them first in a deal valued at
$ 22.4 billion. Earlier this month the Senate Armed Services
C ommittee put off what was to have been a final vote on the
l ease proposal. Chairman John Warner, a Virginia Republican,
a nd the committee's top Democrat, Carl Levin of Michigan, asked
t he Pentagon for data on leasing no more than 25 Boeing 767s,
d own from the 100 sought by the Air Force.
( Reuters 07:46 PM ET 10/01/2003)

M o
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O n Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
w rote in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
deal for BOEING CO. in the face of tough questions from Senate
aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Michael Zettler, deputy chief of staff for installations and
logistics, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
similar -- and equally contentious -- briefing for Senate
professional staffers on Friday, aides said. Despite the
last-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
controversial lease deal this week, putting off any action
until at least mid-October, after a one-week recess. The
committee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reuters 08:08 PM ET 09/29/2003)

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


On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrote in Message-Id: :


Senate Armed Services Committee member John McCain, who helped
stall a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Department proposal. The Pentagon still has "not adequately
justified spending what it now acknowledges will be billions of
dollars more to acquire tankers through a lease," McCain, an
Arizona Republican, said in letters to the armed services
panel's leaders. McCain's new qualms could translate into
further delays for the tanker deal -- a plan to lease a major
weapons system for the first time rather than buy it outright.
(Reuters 04:53 PM ET 09/25/2003)

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



The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billion deal to lease then buy 100 Boeing 767 tankers,
congressional and administration sources said on Monday. They
said Inspector General Joseph Schmitz is considering the
unusual move as he investigates possible impropriety in the
lease proposal that critics including U.S. Sen. John McCain
have blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
documents provided by Boeing to Senate Commerce Committee
Chairman McCain, an Arizona Republican. But investigators,
including an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reuters 05:40 PM ET 09/22/2003)

Mo
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Boeing Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking
authority to buy 26 of the tankers before their 6-year leases
expire to pare total program costs by $1.2 billion. Deputy
Defense Secretary Paul Wolfowitz said buying the 26 tankers
early, between 2008 and 2010, would add $2.4 billion in initial
budget costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cost of the program, the additional funds needed ... and the
delivery schedule for the new capability," he told the Senate
Armed Services Committee, the last of four congressional panels
that must vote on the lease deal.
(Reuters 02:53 PM ET 09/23/2003)

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


On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
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President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wrote in Message-Id: :

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

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


On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
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On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
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On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
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

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Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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


On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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


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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7es :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fo :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreo :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2 :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7k :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpf :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihb :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adelph ia.net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6. :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531 ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
----------------------------------------------------------------


On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1
0



On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:


Boeing Co (BA) (44.41 +1.27)

Plans for the U.S. Air Force to lease BOEING CO. 767 commercial
aircraft as aerial refueling tankers is an expensive solution
that could actually cut overall fuel capacity, according to a
White House analysis obtained on Tuesday. Office of Management
and Budget Director Mitch Daniels said leasing the 100 767s to
start replacing a 40-year-old fleet of KC-135 tankers would
cost up to $26 billion and result in a slightly smaller overall
fuel capacity. A $3.2 billion upgrade of 126 KC-135s would
increase fleet capacity by a similar amount but the Air Force
had not chosen this route, Daniels said in a letter to leasing
critic, Arizona Republican Sen. John McCain.
(Reuters 07:52 PM ET 05/07/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205
07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


  #77  
Old September 3rd 04, 02:24 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


Moving to protect "ongoing criminal investigations," the
government has sought to seal court records involving Darleen
Druyun, a former U.S. Air Force official who has admitted to
illegally negotiating a job with BOEING while still overseeing
its Air Force contracts. A motion filed on Wednesday in U.S.
District Court for the Eastern District of Virginia did not say
if the investigations involved any Boeing Co. officials other
than Druyun and Michael Sears, the company's former CFO. Last
November, Boeing fired both Druyun, who had served as the Air
Force's No. 2 weapons buyer, and Sears over their employment
discussions. Boeing Chief Executive Phil Condit resigned a week
later amid the fallout.
(Reuters 02:25 PM ET 09/02/2004)

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


On Mon, 30 Aug 2004 13:32:26 GMT, Larry Dighera
wrote in ::


U.S. prosecutors are looking into possible improper
employment-related contacts between the head of BOEING CO.'s
defense unit and a high-ranking Air Force official, The Wall
Street Journal said, citing unnamed people familiar with the
matter. James Albaugh, chief executive of Chicago-based
Boeing's $27 billion military and space unit, has on numerous
occasions said he had no role in the hiring of the Air Force
official, Darleen Druyun, the newspaper said. Boeing fired
Druyun and CFO Michael Sears last November, saying they
violated company ethics by discussing a job before Druyun
stopped work on Boeing-related Air Force programs. On Dec. 1,
Boeing Chief Executive Phil Condit resigned amid the fallout.
Druyun pleaded guilty to conspiracy in April and agreed to
cooperate with prosecutors.
(Reuters 05:34 AM ET 08/27/2004)

Mo
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Republican Sen. John McCain, a key critic of a stalled $23.5
billion Air Force deal to lease and buy 100 BOEING CO. aerial
refueling tankers, chided a top general for focusing on
corrosion problems with existing KC-135s tankers, which McCain
said had been disproved. The Arizona senator told Air Force
Gen. John Handy, commander of the Air Mobility Command, in a
letter made public by McCain's office on Wednesday that Handy's
comments in a recent U.S. News & World Report article were
perpetuating an argument for leasing rather than buying tankers
that had been "conclusively shown to be without merit." McCain
cited a recent Defense Science Board, which concluded there was
"no evidence that corrosion poses an imminent catastrophic
threat" to the KC-135s. That report, among others critical of
the proposed tanker lease deal, prompted Defense Secretary
Donald Rumsfeld to put off any decision on the deal until two
additional studies were completed in November, and Air Force
officials now say they do not expect a decision on the deal
until next year.
(Reuters 08:39 PM ET 08/25/2004)

Mo
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On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera
wrote in ::


Federal prosecutors have canceled an Aug. 11 hearing at which
former BOEING CO. CFO Michael Sears planned to plead guilty to
aiding and abetting the hiring of a former Air Force official
while she was overseeing a huge Boeing contract. Sam Dibbley,
spokeswoman for U.S. attorney Paul McNulty, said the hearing
was removed from the docket of the U.S. District Court in
Alexandria, Va., but declined to explain the decision by
prosecutors. A source familiar with the case said he believed
Sears' plea agreement with the government was still intact.
Dibbley said a sentencing hearing for Darleen Druyun, the
former Air Force official who pleaded guilty to one felony
count of conspiracy in April, remained scheduled for Sept. 3.
Jamie Wareham, an attorney for Michael Sears, declined comment
on the case.
(Reuters 11:58 AM ET 08/10/2004)

Mo
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On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera
wrote in ::


The sentencing of a former U.S. Air Force official who admitted
illegally negotiating a job with BOEING CO. while overseeing
its contracts has been postponed until Sept. 3, court papers
showed on Wednesday. Darleen Druyun, the former No. 2 Air Force
acquisitions official, pleaded guilty in April to conspiracy for
discussing the job with Boeing before she disqualified herself
from overseeing the company's dealings with the Air Force,
including a multibillion dollar deal to lease 100 767 refueling
tankers. Papers filed with the U.S. District Court in
Alexandria, Va., showed Druyun's sentencing had been
rescheduled. A source familiar with the case said the
sentencing was delayed until after Aug. 11 when former Boeing
CFO Michael Sears is due to enter a plea to a criminal charge
related to the job discussions. Sears plans to plead guilty to
one charge of aiding and abetting Druyun's hiring, another
source said on condition of anonymity. Druyun and Sears both
face a maximum fine of $250,000 and five years in prison,
although federal sentencing guidelines will likely limit the
fines and jail terms in both cases.
(Reuters 03:27 PM ET 07/28/2004)

Mo
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Former BOEING CO. CFO Michael Sears will enter a guilty plea to a
criminal charge at a hearing in federal district court on Aug.
11, a source familiar with the case said on Tuesday. The source
said Sears plans to plead guilty to one charge of aiding and
abetting the hiring of former Air Force official Darleen Druyun
while she was still overseeing a $23.5 billion Air Force deal to
lease Boeing tankers. Druyun, who pleaded guilty to one felony
count of conspiracy in April, was due to be sentenced on Aug.
6. There was a chance Druyun's sentencing would be postponed
until after Sears enters his plea a week later, the source said.
(Reuters 08:50 PM ET 07/27/2004)

Mo
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A former BOEING CO. executive will plead guilty to a criminal
charge related to the hiring of an Air Force official who
oversaw a Boeing contract to supply refueling jets to the
military, a source familiar with the plea agreement said.
Former CFO Michael Sears will plead guilty to one charge of
aiding and abetting the hiring of Darleen Druyun, who worked on
Boeing's negotiations to lease 100 767 tankers to the military,
the source said. Sears is expected to enter his plea next week
or soon after in U.S. District Court in Alexandria, Virginia,
the source said. He faced charges of "aiding and abetting acts
affecting a personal financial interest," according to court
documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul
McNulty, declined to comment.
(Reuters 04:17 PM ET 07/26/2004)

Mo
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On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera
wrote in ::


BOEING CO. does not foresee a charge to earnings over the stalled
$23.5 billion U.S. military air tanker deal, said Jim Albaugh,
chief executive of the company's defense business. In an
interview, Albaugh said the company continued to believe the
deal for the Air Force to acquire an initial 100 modified 767
air refuelling tankers will succeed, although the form is
uncertain. Boeing's most recent comments call for a deal to be
made in the spring of 2005. Albaugh told Reuters his guess was
that the deal will revert to a total purchase arrangement.
(Reuters 08:51 AM ET 07/22/2004)

Mo
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----------------------------------------------------------------On
Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote:


A decision on a potential shutdown of Boeing 767 jet production
will probably need to be made by next spring, the president of
BOEING CO.'s commercial plane division said. "We have around 24
767s in our backlog ... so we probably need to make a decision
in the spring of next year about what we do with the 767 line,"
said Boeing Commercial Airplanes President Alan Mulally.
"Clearly the plan is to replace the 767 line with the 7E7."
Mulally said the U.S. Air Force would be working through
various evaluations of a proposed U.S. air refueling tanker in
the meantime. The company still hopes it will meet the
requirements of the program, he said. U.S. Defense Secretary
Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to
sell and lease the Air Force an initial 100 tankers based on
the 767 commercial platform.
(Reuters 07:20 AM ET 07/19/2004)

Mo
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On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera
wrote:


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
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BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
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----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

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

Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
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----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
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----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
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================================== ==============================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=956...a&s=rb0405 03

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On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=947...a&s=rb0404 15

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On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=944...a&s=rb0404 06

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On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16

----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

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

Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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


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

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

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


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


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

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

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

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

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Boeing Co (BA) (38.02 -0.37)

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

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

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

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


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

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

Senate Armed Services Committee member John McCain moved on
Thursda y to force disclosure of Pentagon records on a
multibill ion-dollar plan to acquire 100 BOEING CO. 767s as
refueli ng planes. In a letter to committee chairman John
Warner, McCain linked his quest to the fate of Michael Wynne,
Preside nt Bush's choice to be the Pentagon's new chief weapons
buyer. "I respectfully suggest that the Defense Department"
produce records sought for oversight of the Boeing deal "as the
committ ee prepares to consider Mr. Wynne's nomination," McCain
wrote. At a confirmation hearing for Wynne on Tuesday, Warner,
a Virginia Republican; Carl Levin of Michigan, the panel's top
Democra t; and McCain, an Arizona Republican, voiced concern
over Deputy Defense Secretary Paul Wolfowitz's refusal to hand
over documents at issue.
(Reuter s 08:26 PM ET 11/20/2003)

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


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

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

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

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

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

Congres sional conferees have approved a multibillion-dollar
comprom ise plan for the Air Force to acquire 100 BOEING CO.
refueli ng aircraft, leasing the first 20 of them, the House of
Represe ntatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
service s panels agreed the remaining 80 would be bought. The
lease s will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmark s $400 billion for the Defense Department and national
securit y programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defen se Department will be required to conduct and report on an
indepen dent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reuter s 10:08 AM ET 11/07/2003)

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


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

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

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


Defen se Secretary Donald Rumsfeld said he would "dearly love"
Congr ess to strike a deal that would let the Air Force acquire
new BOEING CO. 767s as refueling planes. He seemed to signal
accep tance of a scaled-back lease proposed by the Senate Armed
Servi ces Committee, alone among four congressional oversight
panel s to spurn the original plan, valued at more than $22
billi on, to lease then buy 100 planes. "Political compromise is
wha t we do when the marbles have been divided and it's to be
expec ted," Rumsfeld told reporters at the Pentagon. The Senate
pan el has proposed acquiring up to 100 planes by leasing 20 and
buyin g the rest -- a compromise formula designed to save
billi ons.
(Reut ers 04:28 PM ET 10/30/2003)

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

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

Ba d blood between the U.S. Congress and the Pentagon has taken a
to ll on BOEING CO.'s multibillion-dollar drive to lease
jetl iners to the Air Force as refueling planes, congressional
offi cials and private analysts said on Friday. The Boeing issue
la id bare growing strains between Defense Secretary Donald
Rums feld and his top lieutenants, on the one hand, and the two
mo st powerful Republicans on the Senate Armed Services
Comm ittee, on the other. Among other things, the chill reflects
piqu e at what officials on both sides of the aisle deem
Rums feld's sometimes-dismissive approach to Congress, for
inst ance on the situation in post-war Iraq. But it also
refl ects perceived slights to Armed Services Committee Chairman
Jo hn Warner of Virginia, Congress's top overseer of the Defense
Depa rtment, and the panel's second-ranking Republican, John
McCa in of Arizona.
(Reu ters 06:20 PM ET 10/24/2003)

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Th e White House budget office discounted Thursday a key senator's
requ est to "revisit" its endorsement of a multibillion-dollar
Ai r Force plan to lease 100 BOEING CO. 767s as refueling
plan es. The Office of Management and Budget will review Senate
Comm erce Committee Chairman John McCain's written request sent
Wedn esday, said a spokesman. President Bush said on Sept. 16
th at he backed the proposed lease to start replacing aging
KC-135 tankers. The Air Force says the lease would give it
need ed capability sooner than it could buy outright without
pinc hing other combat priorities. McCain has denounced the
prop osed lease, designed to lead to purchases, as a bonanza for
Boei ng and a bad deal for taxpayers that does not comply with
th e fiscal 2002 legislation that authorized it.
(Reu ters 05:00 PM ET 10/23/2003)

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Th e Senate Commerce Committee plans another hearing next week on
a controversial multibillion-dollar Air Force proposal to lease
10 0 BOEING CO. 767 tankers, as the Senate Armed Services
Comm ittee continues weigh its options, including approving a
scal ed-down lease. The armed services panel, chaired by
Virg inia Republican Sen. John Warner, is the last of four
comm ittees that must approve the lease deal -- which the Air
Forc e says it needs to begin replacing its fleet of aging
mida ir refueling tankers without incurring significant upfront
fund ing costs. Warner is under considerable political pressure
to approve the lease deal, but aides said the latest reports
on ly underscored his concerns about the higher cost of leasing.
(Reu ters 06:49 PM ET 10/21/2003)

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


T he U.S. Air Force urged lawmakers to approve its plan to lease
1 00 BOEING CO. 767 refueling planes despite three new
con gressional reports poking holes in what would be the first
suc h rental of a major weapons system. "The Air Force is hoping
tha t the Senate Armed Services Committee will approve our
ori ginal proposal to lease 100 tankers," said a spokeswoman,
Maj or Karen Finn. "The Air Force really needs this capability."
T he Armed Services Committee is alone among the four military
ove rsight panels that has yet to approve the deal, designed to
acq uire the tankers without significant upfront funding that
wou ld squeeze other combat priorities. The service defended the
lea se a day after the Congressional Budget Office found
tax payers could reap $6.7 billion in savings with an outright
pur chase, which is standard procurement procedure for arms
sys tems.
(Re uters 04:21 PM ET 10/17/2003)

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


O n Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera
wro te in Message-Id: :

Th e top Democrat on the House of Representatives' Armed Services
Co mmittee said he was having second thoughts on a $22.4 billion
Ai r Force plan to lease then buy BOEING Co. refueling planes,
ci ting studies that have challenged its financial soundness. "I
th ink it would be useful to bring members up to date on the many
re ports and studies that have emerged since our hearings on the
is sue," Rep. Ike Skelton of Missouri wrote panel chairman
Du ncan Hunter, R-Calif., on Wednesday. Studies by the
Co ngressional Budget Office, General Accounting Office,
In stitute for Defense Analyses and Congressional Research
Se rvice have shown that acquiring the 100 modified Boeing 767
ai rcraft initially through a lease, as the Air Force hopes to
do , would cost $5.5 billion more than buying them outright.
(R euters 12:53 PM ET 10/09/2003)

Mo
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Th e House of Representatives' Appropriations Committee voted to
pr ess ahead with a $22.4 billion proposal to lease then buy
BO EING CO. 737s as Air Force refueling planes. But the move to
le ase 100 modified 767s as mid-air tankers starting in 2006 --
id entical to a Senate appropriations measure -- highlighted
mi sgivings about the deal among what appeared to be a growing
nu mber of lawmakers. The panel shot down, 33 to 28, a rival
pl an, jokingly introduced by its top Democrat, David Obey of
Wi sconsin, that would have earmarked $14 billion to start
bu ying the aircraft outright rather than leasing them first.
"I f you want to save the taxpayers money, the best way is to
bu y them now," Obey said in bating colleagues to own up to the
le ase's extra costs and exercise what he portrayed as fiscal
re sponsibility.
(R euters 03:16 PM ET 10/09/2003)

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

N ew questions emerged about the personal ties between BOEING CO.
a nd Darleen Druyun, a former top Air Force official who got a
j ob with the company after helping negotiate a multibillion
d ollar deal to lease Boeing 767s as airborne refueling tankers.
T he National Legal and Policy Center, a conservative nonprofit
g roup opposing the lease deal, released public records that
s how Druyun agreed to sell her Virginia home to a senior Boeing
a ttorney while still working for the Air Force as a procurement
o fficial. She had been deputy assistant secretary for Air Force
a cquisition and management. The group also said Druyun's
d aughter and son-in-law both work for Boeing, a fact confirmed
b y the Chicago-based company.
( Reuters 03:18 PM ET 10/07/2003)

M o
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= ================================================== =============

O n Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera
w rote in Message-Id: :

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

Mo
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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wrote in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
deal for BOEING CO. in the face of tough questions from Senate
aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Michael Zettler, deputy chief of staff for installations and
logistics, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
similar -- and equally contentious -- briefing for Senate
professional staffers on Friday, aides said. Despite the
last-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
controversial lease deal this week, putting off any action
until at least mid-October, after a one-week recess. The
committee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reuters 08:08 PM ET 09/29/2003)

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


On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrote in Message-Id: :


Senate Armed Services Committee member John McCain, who helped
stall a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Department proposal. The Pentagon still has "not adequately
justified spending what it now acknowledges will be billions of
dollars more to acquire tankers through a lease," McCain, an
Arizona Republican, said in letters to the armed services
panel's leaders. McCain's new qualms could translate into
further delays for the tanker deal -- a plan to lease a major
weapons system for the first time rather than buy it outright.
(Reuters 04:53 PM ET 09/25/2003)

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



The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billion deal to lease then buy 100 Boeing 767 tankers,
congressional and administration sources said on Monday. They
said Inspector General Joseph Schmitz is considering the
unusual move as he investigates possible impropriety in the
lease proposal that critics including U.S. Sen. John McCain
have blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
documents provided by Boeing to Senate Commerce Committee
Chairman McCain, an Arizona Republican. But investigators,
including an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reuters 05:40 PM ET 09/22/2003)

Mo
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Boeing Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking
authority to buy 26 of the tankers before their 6-year leases
expire to pare total program costs by $1.2 billion. Deputy
Defense Secretary Paul Wolfowitz said buying the 26 tankers
early, between 2008 and 2010, would add $2.4 billion in initial
budget costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cost of the program, the additional funds needed ... and the
delivery schedule for the new capability," he told the Senate
Armed Services Committee, the last of four congressional panels
that must vote on the lease deal.
(Reuters 02:53 PM ET 09/23/2003)

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


On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
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President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wrote in Message-Id: :

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08

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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04

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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26

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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23

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On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24

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On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
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On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
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Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
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On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
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
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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
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=================== =============================================


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


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
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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

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On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

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On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

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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

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07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


  #78  
Old September 15th 04, 02:39 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


Air Force Secretary James Roche on Monday reiterated the need to
begin replacing a fleet of aging KC-135 aerial refueling
tankers, but said the Air Force was awaiting the results of two
studies due in November. Defense Secretary Donald Rumsfeld put a
proposed $23.5 billion Air Force deal to lease 20 BOEING CO. 767
tankers and buy up to 80 more on hold pending the additional
reviews and a decision is not expected until early next year.
Roche acknowledged the Air Force's initial plan to lease all
100 tankers, scaled back after lawmakers raised concerns about
the higher cost of leasing versus direct procurement, had been
viewed as "an outrage" by some. But he told reporters at the
annual Air Force Association conference that he remained
committed to exploring innovative acquisition strategies,
especially since Congress did not object to leasing of other
aircraft, computers or automobiles.
(Reuters 07:07 PM ET 09/13/2004)

Mo
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On Fri, 03 Sep 2004 01:24:36 GMT, Larry Dighera
wrote in ::


Moving to protect "ongoing criminal investigations," the
government has sought to seal court records involving Darleen
Druyun, a former U.S. Air Force official who has admitted to
illegally negotiating a job with BOEING while still overseeing
its Air Force contracts. A motion filed on Wednesday in U.S.
District Court for the Eastern District of Virginia did not say
if the investigations involved any Boeing Co. officials other
than Druyun and Michael Sears, the company's former CFO. Last
November, Boeing fired both Druyun, who had served as the Air
Force's No. 2 weapons buyer, and Sears over their employment
discussions. Boeing Chief Executive Phil Condit resigned a week
later amid the fallout.
(Reuters 02:25 PM ET 09/02/2004)

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


On Mon, 30 Aug 2004 13:32:26 GMT, Larry Dighera
wrote in ::


U.S. prosecutors are looking into possible improper
employment-related contacts between the head of BOEING CO.'s
defense unit and a high-ranking Air Force official, The Wall
Street Journal said, citing unnamed people familiar with the
matter. James Albaugh, chief executive of Chicago-based
Boeing's $27 billion military and space unit, has on numerous
occasions said he had no role in the hiring of the Air Force
official, Darleen Druyun, the newspaper said. Boeing fired
Druyun and CFO Michael Sears last November, saying they
violated company ethics by discussing a job before Druyun
stopped work on Boeing-related Air Force programs. On Dec. 1,
Boeing Chief Executive Phil Condit resigned amid the fallout.
Druyun pleaded guilty to conspiracy in April and agreed to
cooperate with prosecutors.
(Reuters 05:34 AM ET 08/27/2004)

Mo
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Republican Sen. John McCain, a key critic of a stalled $23.5
billion Air Force deal to lease and buy 100 BOEING CO. aerial
refueling tankers, chided a top general for focusing on
corrosion problems with existing KC-135s tankers, which McCain
said had been disproved. The Arizona senator told Air Force
Gen. John Handy, commander of the Air Mobility Command, in a
letter made public by McCain's office on Wednesday that Handy's
comments in a recent U.S. News & World Report article were
perpetuating an argument for leasing rather than buying tankers
that had been "conclusively shown to be without merit." McCain
cited a recent Defense Science Board, which concluded there was
"no evidence that corrosion poses an imminent catastrophic
threat" to the KC-135s. That report, among others critical of
the proposed tanker lease deal, prompted Defense Secretary
Donald Rumsfeld to put off any decision on the deal until two
additional studies were completed in November, and Air Force
officials now say they do not expect a decision on the deal
until next year.
(Reuters 08:39 PM ET 08/25/2004)

Mo
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On Thu, 12 Aug 2004 06:35:55 GMT, Larry Dighera
wrote in ::


Federal prosecutors have canceled an Aug. 11 hearing at which
former BOEING CO. CFO Michael Sears planned to plead guilty to
aiding and abetting the hiring of a former Air Force official
while she was overseeing a huge Boeing contract. Sam Dibbley,
spokeswoman for U.S. attorney Paul McNulty, said the hearing
was removed from the docket of the U.S. District Court in
Alexandria, Va., but declined to explain the decision by
prosecutors. A source familiar with the case said he believed
Sears' plea agreement with the government was still intact.
Dibbley said a sentencing hearing for Darleen Druyun, the
former Air Force official who pleaded guilty to one felony
count of conspiracy in April, remained scheduled for Sept. 3.
Jamie Wareham, an attorney for Michael Sears, declined comment
on the case.
(Reuters 11:58 AM ET 08/10/2004)

Mo
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On Sat, 07 Aug 2004 16:49:38 GMT, Larry Dighera
wrote in ::


The sentencing of a former U.S. Air Force official who admitted
illegally negotiating a job with BOEING CO. while overseeing
its contracts has been postponed until Sept. 3, court papers
showed on Wednesday. Darleen Druyun, the former No. 2 Air Force
acquisitions official, pleaded guilty in April to conspiracy for
discussing the job with Boeing before she disqualified herself
from overseeing the company's dealings with the Air Force,
including a multibillion dollar deal to lease 100 767 refueling
tankers. Papers filed with the U.S. District Court in
Alexandria, Va., showed Druyun's sentencing had been
rescheduled. A source familiar with the case said the
sentencing was delayed until after Aug. 11 when former Boeing
CFO Michael Sears is due to enter a plea to a criminal charge
related to the job discussions. Sears plans to plead guilty to
one charge of aiding and abetting Druyun's hiring, another
source said on condition of anonymity. Druyun and Sears both
face a maximum fine of $250,000 and five years in prison,
although federal sentencing guidelines will likely limit the
fines and jail terms in both cases.
(Reuters 03:27 PM ET 07/28/2004)

Mo
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Former BOEING CO. CFO Michael Sears will enter a guilty plea to a
criminal charge at a hearing in federal district court on Aug.
11, a source familiar with the case said on Tuesday. The source
said Sears plans to plead guilty to one charge of aiding and
abetting the hiring of former Air Force official Darleen Druyun
while she was still overseeing a $23.5 billion Air Force deal to
lease Boeing tankers. Druyun, who pleaded guilty to one felony
count of conspiracy in April, was due to be sentenced on Aug.
6. There was a chance Druyun's sentencing would be postponed
until after Sears enters his plea a week later, the source said.
(Reuters 08:50 PM ET 07/27/2004)

Mo
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A former BOEING CO. executive will plead guilty to a criminal
charge related to the hiring of an Air Force official who
oversaw a Boeing contract to supply refueling jets to the
military, a source familiar with the plea agreement said.
Former CFO Michael Sears will plead guilty to one charge of
aiding and abetting the hiring of Darleen Druyun, who worked on
Boeing's negotiations to lease 100 767 tankers to the military,
the source said. Sears is expected to enter his plea next week
or soon after in U.S. District Court in Alexandria, Virginia,
the source said. He faced charges of "aiding and abetting acts
affecting a personal financial interest," according to court
documents. Sam Dibbley, a spokeswoman for U.S. attorney Paul
McNulty, declined to comment.
(Reuters 04:17 PM ET 07/26/2004)

Mo
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On Sun, 25 Jul 2004 01:31:03 GMT, Larry Dighera
wrote in ::


BOEING CO. does not foresee a charge to earnings over the stalled
$23.5 billion U.S. military air tanker deal, said Jim Albaugh,
chief executive of the company's defense business. In an
interview, Albaugh said the company continued to believe the
deal for the Air Force to acquire an initial 100 modified 767
air refuelling tankers will succeed, although the form is
uncertain. Boeing's most recent comments call for a deal to be
made in the spring of 2005. Albaugh told Reuters his guess was
that the deal will revert to a total purchase arrangement.
(Reuters 08:51 AM ET 07/22/2004)

Mo
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----------------------------------------------------------------On
Tue, 20 Jul 2004 00:56:54 GMT, Larry Dighera wrote:


A decision on a potential shutdown of Boeing 767 jet production
will probably need to be made by next spring, the president of
BOEING CO.'s commercial plane division said. "We have around 24
767s in our backlog ... so we probably need to make a decision
in the spring of next year about what we do with the 767 line,"
said Boeing Commercial Airplanes President Alan Mulally.
"Clearly the plan is to replace the 767 line with the 7E7."
Mulally said the U.S. Air Force would be working through
various evaluations of a proposed U.S. air refueling tanker in
the meantime. The company still hopes it will meet the
requirements of the program, he said. U.S. Defense Secretary
Donald Rumsfeld has put on hold a $23.5 billion Boeing deal to
sell and lease the Air Force an initial 100 tankers based on
the 767 commercial platform.
(Reuters 07:20 AM ET 07/19/2004)

Mo
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On Sun, 18 Jul 2004 02:27:22 GMT, Larry Dighera
wrote:


The Senate Armed Services Committee began reviewing about 2,000
pages of documents on a stalled $23.5 billion Air Force plan to
lease and buy BOEING CO. 767 tankers, a spokesman said. "We did
receive a batch of documents from the White House dealing with
the tanker issue and we expect to receive more in the near
future," said John Ullyot, spokesman for the committee and its
chairman Sen. John Warner. The White House agreed to turn over
the documents last week after a year-long standoff between
Congress and the Pentagon, which had argued the documents
should not be released since they involved internal
deliberations.
(Reuters 03:54 PM ET 07/14/2004)

Mo
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BOEING expects the Pentagon to make a final decision in March or
April whether to approve a controversial deal to buy 100 tanker
jets, the company's chief executive said. "There's a real need
for these aircraft and the Air Force really wants them," CEO
Harry Stonecipher told German daily Frankfurter Allgemeine
Zeitung in comments to be published in Tuesday's edition.
Should the deal, worth more than $20 billion, be delayed any
further, Boeing would be forced to cease production of the 767
jet the tanker is based on, according to the CEO. The Pentagon
put the tanker deal on hold Dec. 1 after Boeing fired its CFO
for recruiting the Air Force's No. 2 weapons buyer while she
was still overseeing tanker negotiations. The ex-Air Force
official, Darleen Druyun, pleaded guilty in April to conspiracy
and pledged to help federal prosecutors.
(Reuters 04:20 PM ET 07/12/2004)

Mo
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----------------------------------------------------------------On
Thu, 17 Jun 2004 00:21:01 GMT, Larry Dighera wrote:


France's Airbus has qualified itself to vie with arch-rival
BOEING CO. for a high-stakes U.S. refueling plane deal if the
contest is reopened, Air Force Secretary James Roche said in an
interview. "I don't care if the planes are made by Martians,"
Roche told the Financial Times. The comments suggest the Air
Force is preparing for possible long delays in upgrading its
aging tanker fleet and that Boeing could face stiff
competition. Before a contracting fiasco derailed its tanker
acquisition plans last year, the Air Force chose a Boeing 767
over the Airbus 330 for a revised $23.5 billion deal. Airbus is
80% owned by the European Aeronautic Defence and Space Co. NV.
The rest is held by Britain's BAE SYSTEMS PLC. In the
interview, Roche said he favored more European access to U.S.
aerospace contracts to spur transatlantic competition. "It's
the only way we're going to discipline the big airframe makers
in the United States," he said. EADS has invested $90 million
on a refueling boom to meet U.S. requirements and says it would
compete with Boeing if invited to do so.
(Reuters 04:41 PM ET 06/10/2004)

Mo
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Sen. John McCain, the Arizona Republican who led congressional
scrutiny of a stalled $23.5 billion BOEING CO. tanker deal,
will offer an amendment to revoke a current law authorizing the
Pentagon to lease Boeing 767s, his office said. Senators will
consider the amendments when they resume work next week on a
bill authorizing spending on Defense Department programs. An
aide to McCain said the amendment would prevent the Pentagon
from leasing 20 767s as aerial refueling tankers until two
reports -- a formal analysis of the alternatives (AOA) and a
mobility capability study -- are completed in November. "It
seeks to revoke the authority that has been granted already for
the Air Force to lease Boeing 767 aircraft," said one aide to
McCain's Senate Commerce Committee, noting it was vital that
Congress not predetermine the outcome of the AOA.
(Reuters 07:46 PM ET 06/08/2004)

Mo
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----------------------------------------------------------------On
Mon, 07 Jun 2004 06:10:19 GMT, Larry Dighera wrote
in Message-Id: :



The chief executive of BOEING CO. said he remains confident the
Pentagon would buy Boeing 767s as refueling tankers and
predicted the U.S. fleet would never include tankers built by
Europe's Airbus. "I do not think for a moment there will be
Airbus tankers in the U.S. fleet," CEO Harry Stonecipher told
the Reuters Air and Defense Summit in Washington. The U.S.
Defense Department last month said it was putting off until at
least November a decision on whether it would reopen
negotiations on a $23.5 billion plan to lease 20 and buy as
many as 80 modified tankers based on Boeing's 767 airliner.
Stonecipher said a version of the deal, whether it includes a
lease component or not, was likely, since the Air Force still
needed to replace its aging fleet of about 540 KC-135 tankers.
But he said the longer the process dragged out, the more likely
that its terms would have to be renegotiated.
(Reuters 10:45 AM ET 06/04/2004)

Mo
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On Wed, 02 Jun 2004 14:21:57 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. said on Monday it was confident it could cling to a
multibillion-dollar U.S. Air Force contract for refueling
planes even if the Pentagon seeks new bids for the lucrative
tanker deal. James Albaugh, president and chief executive of
Boeing's Integrated Defense Systems, also said the aircraft
manufacturer still expected to boost revenue at its key
military and space unit by 10% in 2004 despite pressure on
Pentagon spending. He said the military and space division
expected to earn $30 billion in revenues this year. The defense
division generates around 60% of Boeing's $50.5 billion annual
revenue. Some caution Boeing could end up with a smaller deal
than it had hoped, possibly involving used aircraft, amid
growing concern over rising federal budget deficits. Albaugh
said Boeing's military and space unit could achieve annual
compound growth of 6% without winning any new major contracts,
but remained confident of snaring new orders regardless of who
was elected at the upcoming U.S. polls.
(Reuters 02:37 AM ET 05/31/2004)

Mo
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On Sat, 29 May 2004 11:03:01 GMT, Larry Dighera
wrote in Message-Id: :


A multibillion-dollar BOEING CO. drive to supply refueling planes
to the U.S. Air Force is likely to fly in some form, experts on
military purchases say. On Tuesday, the Pentagon put off until
at least November a decision on whether to reopen negotiations
on a $23.5 billion plan to lease 20 and buy up to another 80
modified tankers based on Boeings' 767 commercial airliner. "I
believe that the Air Force is going to rearrange its
weapons-purchasing priorities in the future to find money for
tanker modernization," said Loren Thompson, director of the
Lexington Institute in Arlington, Va. Others cautioned Boeing
could end up with a deal smaller than it hoped, possibly
involving used aircraft, amid growing concern over rising
federal budget deficits. Boeing's chief rival in the business
is Airbus parent EADS, which says it is ready to compete if the
Pentagon seeks new bids for tankers. But many lawmakers have
made clear they would oppose giving a non-U.S. company any such
contract.
(Reuters 01:40 PM ET 05/27/2004)

Mo
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On Sun, 23 May 2004 21:48:07 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force failed to use a true competitive process to
choose BOEING CO. over Europe's Airbus for a stalled $20
billion-plus plan to lease and buy refueling aircraft,
according to a Pentagon-commissioned report. The analysis by
the Industrial College of the Armed Forces, obtained by Reuters
on Wednesday, also says the Air Force appeared to have made
"only limited use of considerable government buying power and
leverage to obtain maximum discounts." The report, which has
not been officially released, is one of a series of studies
requested by Defense Secretary Donald Rumsfeld to help decide
the fate of the Air Force plan to lease 20 modified Boeing 767
tankers and buy 80 more. A Defense Science Board task force has
already said there is no compelling reason to rush to replace
the existing KC-135 tankers and the Defense Department's
inspector general has said the $23.5 billion project, as
negotiated by the Air Force, could cost $4.5 billion more than
necessary.
(Reuters 08:20 PM ET 05/19/2004)

Mo
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LOCKHEED MARTIN CORP. quietly proposed an all-new aerial
refueling tanker in 2002 before the U.S. Air Force instead
pursued a now-stalled $23.5 billion deal with BOEING CO. based
on the 767 airliner, Lockheed acknowledged. The Pentagon's
largest supplier, Lockheed is leaving open the possibility of
reviving its pitch if the military calls for a new contest,
which could further complicate Boeing's hopes to lease and sell
100 modified 767s. A copy of the previously undisclosed proposal
was obtained by Reuters from a source outside the company who
declined to be named. Lockheed spokesman Thomas Jurkowsky
confirmed it was authentic and said it came from a Lockheed
advanced development project office in response to a feeler
from the Air Force.
(Reuters 02:00 PM ET 05/21/2004)

Mo
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BOEING CO. said that its tanker program "is not dead" since its
U.S. Air Force customer still wants to go ahead with its plan
to lease and buy refueling aircraft from the aircraft maker.
"The tanker is not dead," said Boeing CEO Harry Stonecipher in
an address to institutional investors in New York. "The
customer has not changed their mind one iota about the 767
tanker program."
(Reuters 08:34 AM ET 05/19/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=962...a&s=rb0405 19

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On Tue, 18 May 2004 14:33:34 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it was "very optimistic" about completing a
stalled $23.5 billion plan to supply refueling aircraft to the
U.S. Air Force despite new doubts about the deal raised by a
Pentagon advisory panel. Boeing was buoyed by a measure in the
2005 Defense Authorization bill passed by the House of
Representatives Armed Services Committee late Wednesday,
earmarking $95 million to speed the lease of 20 tankers and the
purchase of 80 more. The bill would require the secretary of the
Air Force to enter into a multiyear contract for new Boeing
tankers after renegotiating the terms. It would also set up a
panel of outside experts to make sure it made sense for
taxpayers -- a tacit acknowledgment of Pentagon Inspector
General Joseph Schmitz's finding that the current plan might
cost $4.5 billion more than necessary.
(Reuters 04:26 PM ET 05/14/2004)

Mo
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Defense Secretary Donald Rumsfeld likely will stick to a "pause"
on a $23.5 billion U.S. Air Force plan to lease and buy BOEING
CO. refueling aircraft until completion of a study of whether
new aircraft are needed, Michael Wynne, the Pentagon's top
weapons buyer said on Thursday. The study, being carried out by
the Air Force and known as an analysis of alternatives, could
wind up by the end of this year if speeded up, said Wynne. He
said he expected Rumsfeld to have taken "on board" a Pentagon
advisory panel's conclusions, presented to Congress Wednesday,
that the existing fleet's corrosion problems were "manageable,"
and that there was no need to rush on the Boeing deal. In the
summary of its findings presented to Congress on Wednesday, a
Defense Science Board task force said there was "no compelling
material or financial reason to initiate a replacement program"
before studying alternatives and how the military will use the
planes.
(Reuters 07:03 PM ET 05/13/2004)

Mo
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The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

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On Fri, 14 May 2004 12:59:33 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force has no pressing need to start phasing out its
refueling planes, a Pentagon-commissioned report made available
Wednesday said, in a fresh blow to a stalled $23.5 billion
BOEING CO. tanker deal. The report by a task force of the
Defense Science Board, a Pentagon advisory panel, found "no
compelling material or financial reason" to replace the KC-135
tankers until a traditional analysis of alternatives was
completed -- a process the Pentagon has said could take up to
18 months. New 767 aircraft may not be required, the task force
added, citing the possibility of replacing engines on the old
aircraft, converting retired DC-10 aircraft or developing new
tankers with more modern airframes. Boeing must decide whether
to close the production line within a few months if the deal to
lease and sell 100 modified 767s as mid-air tankers stays
stalled, a top company executive said Tuesday night.
(Reuters 10:53 PM ET 05/12/2004)

Mo
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U.S. Sen. John McCain on Tuesday held up more Pentagon
nominations and threatened to seek a subpoena for Pentagon
documents on a now-suspended $23.5 billion Air Force deal for
100 BOEING CO. 767 tankers if defense officials did not turn
over the data soon. McCain, who has led opposition to the
tanker lease-buy deal, said he would place a hold on five
additional nominations for civilian jobs at the Pentagon over
the document issue, bringing the total number of nominations on
hold to nine. Pentagon spokeswoman Cheryl Irwin said the Defense
Department had already provided Congress with documents that it
deemed appropriate and that would not inadvertently lead to the
release of company proprietary data. A majority of members of
the Senate Armed Services Committee voted to approve the
nominations of Tina Jonas to replace former Pentagon
Comptroller Dov Zakheim and Dionel Aviles as Navy
Undersecretary, and three others.
(Reuters 07:14 PM ET 05/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 11

----------------------------------------------------------------On
Wed, 12 May 2004 16:46:09 GMT, Larry Dighera wrote
in Message-Id: :


Two more Pentagon reports have raised questions about a $23.5
billion Air Force plan to lease and buy 100 BOEING CO. 767
refueling tankers, sources familiar with the reports said on
Monday, a development that could prompt Defense Secretary
Donald Rumsfeld to scuttle the deal. The Defense Science Board,
a Pentagon advisory board, and the National Defense University
have finished separate reviews on the deal -- reports that
Rumsfeld said he needed to see before deciding whether to
approve the controversial deal. The sources said defense
officials now expect Rumsfeld to scrap the tanker lease and
order a formal analysis of alternatives on how to modernize the
Air Force's aging fleet of KC-135s -- a review that could take a
year to 18 months.
(Reuters 07:57 PM ET 05/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10

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On Tue, 11 May 2004 12:13:25 GMT, Larry Dighera
wrote in Message-Id: :

----------------------------------------------------------------
Boeing Co (BA) (42.59 -0.81)

BOEING CO.'s former chief executive was present when the
aerospace giant first tried to hire an Air Force procurement
official who oversaw Boeing contracts, according to an Air
Force memo, The Wall Street Journal said. The February memo
describes job talks between Boeing and Darleen Druyun, saying
"the possibility of Druyun's future employment with Boeing" was
mentioned "in general terms," during an August 2002 lunch at
Boeing's Chicago headquarters attended by then Chairman and CEO
Phil Condit, Druyun and former Boeing CFO Michael Sears, the
Journal said. The memo was made public last week, the Journal
said. Druyun last month pleaded guilty to one conspiracy count
for violating a conflict-of-interest law by negotiating a job
at Boeing while still at the Air Force overseeing a $20
billion-plus refueling-tanker deal and other Boeing-related
contracts.
(Reuters 07:54 AM ET 05/10/2004)

Mo
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Boeing Co (BA) (42.59 -0.81)

BOEING CO. will fire 50 contract workers in Wichita, Kan., and
reassign some company workers because of delays in a
controversial order for 100 U.S. Air Force refueling tankers,
according to an internal memo obtained by Reuters. The cuts
would come "over the next several days" and will add to the 150
jobs cuts and 600 job transfers announced in February when
Boeing, the No. 2 Pentagon contractor, said it was slowing
development of the 767-based tankers. A spokesman for
Chicago-based Boeing did not immediately return a phone call
seeking comment. Boeing last week took out full-page ads in a
dozen publications defending the deal, which has been labeled
corporate welfare by fiscal watchdog groups and hampered by the
discovery that a former Air Force official negotiated a job at
Boeing while still overseeing the tanker talks.
(Reuters 12:47 PM ET 05/10/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=959...a&s=rb0405 10

----------------------------------------------------------------On
Sun, 09 May 2004 15:54:29 GMT, Larry Dighera wrote
in Message-Id: :


A Pentagon decision on whether to buy 100 midair refueling
tankers from BOEING for more than $20 billion may be delayed at
least until November, The Wall Street Journal said. In April a
former top U.S. Air Force procurement official, Darleen Druyun,
pleaded guilty to one conspiracy count for violating a
conflict-of-interest law by negotiating an eventual job at
Boeing while she was still overseeing talks for the
multibillion dollar tanker deal. The Pentagon has put the
tanker deal on hold pending reviews, including an examination
by the Defense Science Board, with a specific eye to the Air
Force's claim that the current fleet of KC-135 tankers is
experiencing worse-than-expected corrosion.
(Reuters 05:55 AM ET 05/07/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=958...a&s=rb0405 07

================================= ===============================
On Wed, 05 May 2004 23:44:41 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. lashed out at news reports questioning its
now-suspended deal to sell and lease the U.S. Air Force 100 767
tankers, placing a full-page retort in a dozen publications
including The Washington Post and The Wall Street Journal. In
the ad, entitled "The Boeing 767 Tanker: Let's Get the Facts
Straight," Chief Executive Harry Stonecipher cited media
reports "based on draft reports, out-of-context emails and
misleading allegations." Stonecipher, who took the helm at
Boeing late last year after a growing scandal surrounding the
$23.5 billion tanker deal caused former Chief Executive Phil
Condit to resign, defended the project and said he was ready to
reopen talks with the Air Force as soon as the Pentagon was
ready.
(Reuters 03:03 PM ET 05/04/2004)

Mo
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The chief executive of BOEING CO. said he expects the company's
$20-billion-plus plan to lease and sell the U.S. military 100
midair refueling tankers to go through this year because the
Air Force still favors it. "The reason I'm confident it will
get done is because the customer, still, is very much in
favor," Chief Executive Harry Stonecipher said following
Boeing's annual shareholders meeting. Stonecipher, a former
vice chairman of Boeing, returned to active management last
year following the sudden resignation of former CEO Phil
Condit. The company's problems in concluding the tanker deal,
first announced more than 2 years ago, have intensified in
recent months as several reviews take place in various
governmental and legal offices.
(Reuters 03:12 PM ET 05/03/2004)

Mo
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----------------------------------------------------------------
On Mon, 19 Apr 2004 12:34:41 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Air Force improperly awarded a $1.32 billion NATO
surveillance-plane upgrade contract to BOEING CO. that was
negotiated by an official who later joined the company, the
Pentagon's chief inspector said on Thursday. The deal was
negotiated by Darleen Druyun, the Air Force's former No. 2
procurement official who was hired one month later by Boeing,
said Inspector General Joseph Schmitz, an internal watchdog.
Druyun is scheduled to plead guilty on Tuesday to a felony
count of conspiracy in another Boeing-related matter. She has
agreed to cooperate with prosecutors investigating a possibly
tainted $23.5 billion Air Force plan to lease and buy Boeing
767s as refueling planes.
(Reuters 07:55 PM ET 04/15/2004)

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


On Thu, 15 Apr 2004 16:54:03 GMT, Larry Dighera
wrote in Message-Id: :


A former BOEING CO. official, under investigation for possible
conflicts of interest in a $23.5 billion Pentagon air tanker
deal, plans to plead guilty to conspiracy next week, court
documents showed. The investigation centers on whether the
actions of Darleen Druyun, formerly the U.S. Air Force's No. 2
acquisition official, and another former Boeing official
tainted an Air Force plan to lease and buy Boeing 767s as
refueling planes. Druyun's plea agreement could be a further
setback for the Air Force, which says it needs to begin
replacing its fleet of KC-135 tankers, which average 40 years
in age. The deal is already on hold pending several Pentagon
reviews, an investigation by the SEC and an ongoing federal
criminal investigation.
(Reuters 02:43 PM ET 04/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=946...a&s=rb0404 13

On Sun, 11 Apr 2004 18:19:52 GMT, Larry Dighera
wrote in Message-Id: :


A proposed $23.5 billion Air Force deal to lease and buy 100
BOEING CO. 767 tankers may cost taxpayers up to $4.4 billion
more than it should, according to a Pentagon Inspector General
audit that urged the Pentagon to hold off on the deal until
concerns are addressed. Senate aides said the audit put the
deal in jeopardy, despite Boeing executive James Albaugh's
comment on Tuesday that he thinks the deal to lease 20 tankers
and purchase 80 more will "get done this year." The Inspector
General's (IG) audit showed the deal would cost taxpayers
between $2.5 billion to $4.4 billion more than if the Air Force
had followed standard defense procurement rules. It also chided
the Air Force for including $1 billion of development costs,
although Boeing developed a similar tanker for other nations.
(Reuters 07:07 PM ET 04/06/2004)

Mo
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On Thu, 01 Apr 2004 01:17:05 GMT, Larry Dighera
wrote in Message-Id: :

Rep. Norm Dicks, a key backer of a U.S. Air Force plan to lease
and buy 100 of BOEING CO.'s 767 tankers, on Tuesday raised the
prospect of legislation to exclude foreign companies from
future tanker deals. Dicks, D-Wash., said Airbus Industries
should be banned from bidding for future tanker contracts since
it receives subsidies from European governments and the U.S. had
only one commercial aircraft maker left -- Boeing. Ralph Crosby,
chairman and CEO of the North American unit of EADS, the parent
company of Airbus, said Airbus received interest-bearing,
repayable loans to help finance the launch of new aircraft, but
it always repaid those loans.
(Reuters 06:41 PM ET 03/30/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 30

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

On Wed, 31 Mar 2004 13:45:46 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon should fix, but not necessarily kill, a stalled $23
billion plan to lease and buy modified BOEING CO. refueling
planes, the Defense Department's internal watchdog said.
Inspector General Joseph Schmitz, outlining audit results to
Congress, said he had found no "compelling reason" to block the
acquisition of 100 Boeing 767 aircraft used to refuel warplanes
in midair. But procurement laws need to be fulfilled before the
program moves forward, Schmitz and his aides told the staff of
the Senate Armed Services Committee and others in a briefing.
The tanker deal was put on hold last year after Boeing fired
two executives over "unethical" contacts during negotiations on
the plan, the first involving lease of a major weapon rather
than a straight purchase.
(Reuters 06:59 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Tue, 30 Mar 2004 14:07:12 GMT, Larry Dighera
wrote in Message-Id: :


Pentagon inspector general Joseph Schmitz said he had found no
"compelling reason" to kill a stalled, $23 billion Air Force
plan to lease and buy modified BOEING CO. refueling planes. But
Schmitz, outlining the findings of a high-stakes audit, told the
staff of the Senate Armed Services Committee and others that the
program should not move forward until the Air Force has fixed
what his aides described as serious flaws in their procurement
procedures.
(Reuters 04:36 PM ET 03/29/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29

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

On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera
wrote in Message-Id: :

Europe's Airbus should get another shot at supplying billions of
dollars of aerial refueling tankers to the U.S. Air Force if
the Pentagon kills a stalled plan to go with BOEING CO., Air
Force Secretary James Roche said. If sent back to square one,
"there would be no alternative (to reopening the competition)
because we're talking about a brand new plane," he told
reporters at a breakfast forum. Forcing Boeing to compete in
this case would "make sense," Roche said. "I would be delighted
to do it." European Aeronautic Defense and Space Co. NV, which
owns 80% of Airbus, Boeing's chief commercial aircraft rival,
said in a statement it was prepared to compete for all future
U.S. tanker business. "This clearly applies to the
circumstances Secretary Roche describes," said Ralph Crosby,
chairman and chief executive of EADS' North American arm.
(Reuters 03:00 PM ET 03/17/2004)

Mo
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On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera
wrote in Message-Id: :


Defense officials and analysts cautioned against naive optimism
about the prospects for a U.S. Air Force deal to lease and buy
100 767 tankers from BOEING CO., saying the controversy about
the $27.6 billion deal was far from over. Pentagon Inspector
General Joseph Schmitz concluded in a March 5 draft report that
there was "no compelling reason" to scrap the deal, which
critics say was aimed at helping the Chicago-based company
weather a huge drop in aircraft sales. But the report raised
many questions about the deal and said some of its terms needed
be renegotiated due to unsound acquisition practices, said
sources familiar with the report.
(Reuters 04:30 PM ET 03/16/2004)

Mo
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----------------------------------------------------------------On
Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote
in Message-Id: :


BOEING CO. said an independent ethics review found that the No. 2
Pentagon contractor's improper hiring of a former U.S. Air Force
procurement official was an isolated incident. The report,
following a 3-month review led by former U.S. Sen. Warren
Rudman, found room for improvement at Boeing, unrelated to the
controversial hiring of Darleen Druyun, who was fired in
November along with Chief Financial Officer Mike Sears. Boeing
says Sears and Druyun discussed job opportunities at Boeing
before Druyun stopped working on Boeing-related Air Force
programs, providing grounds for firing them both. The Rudman
report said Boeing's job application process did not ask if a
candidate had been involved in Boeing-related activities or had
filed a disqualification statement covering Boeing, nor did they
ask for a copy of any such statements.
(Reuters 01:17 PM ET 03/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09

----------------------------------------------------------------On
Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote
in Message-Id: :


Top U.S. Air Force officials reiterated the need to begin
replacing 133 of its oldest KC-135 midair refueling tankers,
despite a delay in its deal with BOEING CO. to lease and buy
100 767 tankers. The deal, with a total price tag of $27.6
billion, is on hold pending a criminal investigation and
studies on the urgency of the need to replace the 40-year-old
KC-135 fleet. Air Force Secretary James Roche said the Air
Force had hoped to use the proposed lease -- which drew hefty
criticism in Congress -- to accelerate the replacement, but
said he agreed with a halt in the program, pending the
investigations. Given the situation, the Air Force had reverted
to its original plan to slowly begin buying replacement tankers,
earmarking $150 million toward that in the fiscal 2006 budget
plan, Roche told the House Armed Services Committee.
(Reuters 01:50 PM ET 02/26/2004)

Mo
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The Pentagon poured cold water on a report of a new delay for
BOEING CO.'s proposed multibillion-dollar air refueling tanker
deal. The Defense Department remains on track to make a
decision about the proposed acquisition of Boeing 767 aircraft
as tankers after the scheduled May 1 completion of four
reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman
Brothers analyst, Joe Campbell, apparently had misinterpreted
the significance of an analysis of alternatives that she said
would take 18 months. Campbell, in a research note, said the
18-month study could cause Boeing to shut down the slow-selling
767 line. But the Pentagon said the analyst had misinterpreted a
memo discussing the analysis of alternatives mandated by law
late last year. "The authorization act directed the Air Force
to conduct an analysis of alternatives," or AOA, Irwin said.
"With DoD (the Defense Department), the suspension of
negotiations with Boeing on the tanker lease deal is not
connected to the AOA," she said. "We are talking two separate
issues." A Boeing spokeswoman was not immediately available for
comment.
(Reuters 03:40 PM ET 02/26/2004)

Mo
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On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said it would slow development work on a potentially
huge U.S. air refueling tanker deal as a result of government
reviews of the program. Boeing will fire about 100 contract
employees in Wichita, Kan., and could fire up to 50 workers in
Washington state and reassign about 600 others, the company
said in a statement. The U.S. Air Force tanker order,
originally designed as a lease worth nearly $30 billion, has
been repeatedly delayed, first over concerns on the price and
later over ethical concerns related to Boeing's hiring of a
former Air Force procurement official.
(Reuters 02:30 PM ET 02/20/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20

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


On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain demanded that Air Force Secretary James Roche
explain why officials altered data on the threat of corrosion
to refueling planes -- a key argument in the drive to lease and
buy 100 tanker replacements from BOEING CO. The Arizona
Republican, who spearheaded a congressional investigation of
the tanker deal, asked Roche to fully explain the matter by
Feb. 27, ahead of his scheduled appearance at March 2 hearing
of the Senate Armed Services Committee. "Please provide a full
explanation of why, in response to a specific request for exact
copies of slides originally presented at Tinker AFB, did your
office produce documents with data favorable to the lease
proposal inserted and unfavorable data deleted," McCain wrote
in the letter to Roche. No comment was immediately available
from the Air Force on the McCain letter.
(Reuters 02:21 PM ET 02/13/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13

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On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said he had told Harry Stonecipher, the new
BOEING CO. chief executive, he did not regard the company as
being in a "penalty box" over its stalled $20 billion-plus
tanker proposal to the U.S. Air Force. "I assured him all I
asked for was the orderly process which now pretty much is in
place," McCain said in an interview after a 20-minute meeting
in his Senate office with Stonecipher.
(Reuters 05:13 PM ET 02/11/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11


On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's inspector general will brief top officials this
week on his criminal investigation of a $27.6 billion plan to
lease and buy BOEING CO. tankers, but the probe is far from
over and the deal remains on hold, defense officials said on
Monday. The Pentagon's in-house watchdog agency, working
closely with the Justice Department, will report back to Deputy
Defense Secretary Paul Wolfowitz, who put the Air Force plan on
hold last December after Boeing fired two top executives for
ethical violations. One official, who asked not to be named,
said the report did not signal the end of the broader
investigation: "This is not the end of the investigation. This
is ongoing." Defense officials say the proposed Air Force deal
with Boeing has been delayed until at least May, and may be
revamped entirely, after several separate assessments are
completed.
(Reuters 07:34 PM ET 02/09/2004)

Mo
http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09

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

On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera
wrote in Message-Id: :

Critics of a U.S. Air Force multibillion-dollar deal to lease and
buy BOEING CO. refueling tankers, were hopeful on Tuesday after
scrutinizing a Pentagon budget that did not earmark funds for a
plan they had blasted as a giveaway to the aerospace company.
The lack of funding in the defense budget was "another sign
that the tanker deal has finally been put to bed," said Eric
Miller, defense analyst at the Project on Government Oversight,
which opposed the lease deal from the start. The deal was put on
hold in December after Boeing fired two top executives for
ethical violations, prompting an expansion of a criminal
investigation that was already underway. Air Force spokeswoman
Cheryl Law said there were only "negligible" amounts of funding
for the tanker deal in the fiscal 2005 budget request, and no
funds to actually lease aircraft. She said funds could still be
reallocated if Congress and the Pentagon cleared the deal.
(Reuters 08:08 PM ET 02/03/2004)

Mo
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Defense Secretary Donald Rumsfeld said that U.S. Air Force
efforts to acquire BOEING CO. 767 aircraft as refueling tankers
appeared to have been tainted by "wrongdoing." Announcing a new
study into the condition of the current tanker fleet, he in
effect delayed until May at the earliest the possible
acquisition of the Boeing 767s, a deal potentially worth more
than $20 billion. "I can assure you that, if there has been
wrongdoing, as there appears to have been, we will take
appropriate action," Rumsfeld told the Senate Armed Services
Committee. The Defense Science Board, a Pentagon advisory
panel, will study the Air Force's push to phase out its
Eisenhower-era KC-135 tankers rather than put new engines in
them or "recapitalize" in another way, Pentagon officials said.
(Reuters 03:29 PM ET 02/04/2004)

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

On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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


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


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

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

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

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

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


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

Mo
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BOEING said on Saturday it was confident a controversial $20
billion-plus defense contract with the U.S. Air Force would go
ahead despite a pause in negotiations ordered by the Pentagon.
"We're confident that there's going to be a U.S. Air Force 767
program," Mark Kronenberg, VP, International Business
Developmen t for the Middle East, Africa and the Americas, told
Reuters. "Obviously right now it's under review. OSD (Office of
Secretary of Defense) is looking at it. Air Force is looking at
it and we're cooperating with both fully," Kronenberg said. The
New York Times reported on Saturday that the U.S. Air Force's
top acquisitions official urged the quick signing of the
contract with Boeing even after Defense Secretary Donald
Rumsfeld expressed concern about improprieties.
(Reuters 07:34 AM ET 12/06/2003)

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


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

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

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

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

Mo
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Boeing Co (BA) (38.02 -0.37)

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

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

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

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

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


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


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

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

Senate Armed Services Committee member John McCain moved on
Thursd ay to force disclosure of Pentagon records on a
multibil lion-dollar plan to acquire 100 BOEING CO. 767s as
refuelin g planes. In a letter to committee chairman John
Warner , McCain linked his quest to the fate of Michael Wynne,
Presiden t Bush's choice to be the Pentagon's new chief weapons
buyer. "I respectfully suggest that the Defense Department"
produc e records sought for oversight of the Boeing deal "as the
committe e prepares to consider Mr. Wynne's nomination," McCain
wrote. At a confirmation hearing for Wynne on Tuesday, Warner,
a Virginia Republican; Carl Levin of Michigan, the panel's top
Democrat ; and McCain, an Arizona Republican, voiced concern
over Deputy Defense Secretary Paul Wolfowitz's refusal to hand
over documents at issue.
(Reute rs 08:26 PM ET 11/20/2003)

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


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

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

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

Mo
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BOEIN G CO., banned in July from launching government satellites
for illegally acquiring a competitor's documents, on Tuesday
unveile d a new internal ethics office reporting directly to
compa ny Chairman and CEO Phil Condit. Boeing said Senior VP
Bonni e Soodik would lead the new organization, assuming
respons ibility for internal auditing, ethics, import-export
complia nce, foreign sales consultants and a new U.S. securities
law holding managers more accountable for their actions. The
move comes as Boeing continues to wait for the Air Force to
lift its suspension of three Boeing units from government work,
a move that had been expected months ago. The Pentagon's
inspect or general is also investigating whether Darleen Druyun,
a former Air Force official who now works for Boeing, improperly
share d proprietary data with Boeing during negotiations on a 767
tanke r lease deal.
(Reuter s 06:02 PM ET 11/11/2003)

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



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

Congre ssional conferees have approved a multibillion-dollar
compro mise plan for the Air Force to acquire 100 BOEING CO.
refuel ing aircraft, leasing the first 20 of them, the House of
Repres entatives Armed Services Committee said. Winding up a
2-year battle over the program, the House and Senate armed
servic es panels agreed the remaining 80 would be bought. The
leas es will begin in fiscal 2006, which starts Oct. 1, 2005,
and the purchases will be through fiscal 2014. The deal was
part of the fiscal 2004 Defense Authorization Act, which
earmar ks $400 billion for the Defense Department and national
securi ty programs of the Energy Department. Under the revised
plan for tankers, which refuel other warplanes in mid-air, the
Defens e Department will be required to conduct and report on an
indepe ndent assessment of the condition of the aging fleet of
KC-135 tankers.
(Reute rs 10:08 AM ET 11/07/2003)

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


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

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

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


Defe nse Secretary Donald Rumsfeld said he would "dearly love"
Cong ress to strike a deal that would let the Air Force acquire
ne w BOEING CO. 767s as refueling planes. He seemed to signal
acce ptance of a scaled-back lease proposed by the Senate Armed
Serv ices Committee, alone among four congressional oversight
pane ls to spurn the original plan, valued at more than $22
bill ion, to lease then buy 100 planes. "Political compromise is
wh at we do when the marbles have been divided and it's to be
expe cted," Rumsfeld told reporters at the Pentagon. The Senate
pane l has proposed acquiring up to 100 planes by leasing 20 and
buyi ng the rest -- a compromise formula designed to save
bill ions.
(Reu ters 04:28 PM ET 10/30/2003)

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==== ================================================== ==========
A study released on Tuesday raises questions about a U.S. Air
Forc e proposal to give BOEING CO. a $5.3 billion contract to
main tain 100 767 refueling tankers, the latest congressional
repo rt to criticize the multibillion-dollar lease proposal.
Se n. John McCain, chairman of the Senate Commerce Committee and
a vocal critic of the $24.3 billion lease and buy deal, released
th e Congressional Research Service report challenging the Air
Forc e's assertion that Boeing is "uniquely qualified" to
prov ide initial maintenance support. CRS said many other
comp anies routinely serviced 767s, and Boeing was not "the
only , or even the largest, organization capable of handling the
main tenance needs of the 767." Air Force Secretary James Roche
to ld the Senate Armed Services Committee in a letter dated Oct.
9 that it made sense to give the maintenance contract to Boeing
sinc e much of the 767 engineering data was proprietary. But CRS
sa id much of this data could be licensed to a third party to
hand le maintenance.
(Reu ters 06:57 PM ET 10/28/2003)

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

B ad blood between the U.S. Congress and the Pentagon has taken a
tol l on BOEING CO.'s multibillion-dollar drive to lease
jet liners to the Air Force as refueling planes, congressional
off icials and private analysts said on Friday. The Boeing issue
lai d bare growing strains between Defense Secretary Donald
Rum sfeld and his top lieutenants, on the one hand, and the two
mos t powerful Republicans on the Senate Armed Services
Com mittee, on the other. Among other things, the chill reflects
piq ue at what officials on both sides of the aisle deem
Rum sfeld's sometimes-dismissive approach to Congress, for
ins tance on the situation in post-war Iraq. But it also
ref lects perceived slights to Armed Services Committee Chairman
Joh n Warner of Virginia, Congress's top overseer of the Defense
Dep artment, and the panel's second-ranking Republican, John
McC ain of Arizona.
(Re uters 06:20 PM ET 10/24/2003)

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


T he White House budget office discounted Thursday a key senator's
req uest to "revisit" its endorsement of a multibillion-dollar
A ir Force plan to lease 100 BOEING CO. 767s as refueling
pla nes. The Office of Management and Budget will review Senate
Com merce Committee Chairman John McCain's written request sent
Wed nesday, said a spokesman. President Bush said on Sept. 16
tha t he backed the proposed lease to start replacing aging
K C-135 tankers. The Air Force says the lease would give it
nee ded capability sooner than it could buy outright without
pin ching other combat priorities. McCain has denounced the
pro posed lease, designed to lead to purchases, as a bonanza for
Boe ing and a bad deal for taxpayers that does not comply with
t he fiscal 2002 legislation that authorized it.
(Re uters 05:00 PM ET 10/23/2003)

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

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


T he Senate Commerce Committee plans another hearing next week on
a controversial multibillion-dollar Air Force proposal to lease
1 00 BOEING CO. 767 tankers, as the Senate Armed Services
Com mittee continues weigh its options, including approving a
sca led-down lease. The armed services panel, chaired by
Vir ginia Republican Sen. John Warner, is the last of four
com mittees that must approve the lease deal -- which the Air
For ce says it needs to begin replacing its fleet of aging
mid air refueling tankers without incurring significant upfront
fun ding costs. Warner is under considerable political pressure
t o approve the lease deal, but aides said the latest reports
onl y underscored his concerns about the higher cost of leasing.
(Re uters 06:49 PM ET 10/21/2003)

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

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O n Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera
wro te in Message-Id: :


Th e U.S. Air Force urged lawmakers to approve its plan to lease
10 0 BOEING CO. 767 refueling planes despite three new
co ngressional reports poking holes in what would be the first
su ch rental of a major weapons system. "The Air Force is hoping
th at the Senate Armed Services Committee will approve our
or iginal proposal to lease 100 tankers," said a spokeswoman,
Ma jor Karen Finn. "The Air Force really needs this capability."
Th e Armed Services Committee is alone among the four military
ov ersight panels that has yet to approve the deal, designed to
ac quire the tankers without significant upfront funding that
wo uld squeeze other combat priorities. The service defended the
le ase a day after the Congressional Budget Office found
ta xpayers could reap $6.7 billion in savings with an outright
pu rchase, which is standard procurement procedure for arms
sy stems.
(R euters 04:21 PM ET 10/17/2003)

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

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


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

T he top Democrat on the House of Representatives' Armed Services
C ommittee said he was having second thoughts on a $22.4 billion
A ir Force plan to lease then buy BOEING Co. refueling planes,
c iting studies that have challenged its financial soundness. "I
t hink it would be useful to bring members up to date on the many
r eports and studies that have emerged since our hearings on the
i ssue," Rep. Ike Skelton of Missouri wrote panel chairman
D uncan Hunter, R-Calif., on Wednesday. Studies by the
C ongressional Budget Office, General Accounting Office,
I nstitute for Defense Analyses and Congressional Research
S ervice have shown that acquiring the 100 modified Boeing 767
a ircraft initially through a lease, as the Air Force hopes to
d o, would cost $5.5 billion more than buying them outright.
( Reuters 12:53 PM ET 10/09/2003)

M o
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T he House of Representatives' Appropriations Committee voted to
p ress ahead with a $22.4 billion proposal to lease then buy
B OEING CO. 737s as Air Force refueling planes. But the move to
l ease 100 modified 767s as mid-air tankers starting in 2006 --
i dentical to a Senate appropriations measure -- highlighted
m isgivings about the deal among what appeared to be a growing
n umber of lawmakers. The panel shot down, 33 to 28, a rival
p lan, jokingly introduced by its top Democrat, David Obey of
W isconsin, that would have earmarked $14 billion to start
b uying the aircraft outright rather than leasing them first.
" If you want to save the taxpayers money, the best way is to
b uy them now," Obey said in bating colleagues to own up to the
l ease's extra costs and exercise what he portrayed as fiscal
r esponsibility.
( Reuters 03:16 PM ET 10/09/2003)

M o
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O n Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera
w rote in Message-Id: :

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

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

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

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

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

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

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On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera
wrote in Message-Id: :


Air Force officials on Monday staunchly defended a $22.4 billion
air tanker lease agreement some critics say is a sweetheart
deal for BOEING CO. in the face of tough questions from Senate
aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen.
Michael Zettler, deputy chief of staff for installations and
logistics, met with military legislative aides hoping to pave
the way for approval by the Senate Armed Services Committee of
the plan to lease then buy 100 Boeing 767 tankers. They held a
similar -- and equally contentious -- briefing for Senate
professional staffers on Friday, aides said. Despite the
last-minute push by the Air Force, Senate aides said they did
not expect the Senate Armed Services Committee to vote on the
controversial lease deal this week, putting off any action
until at least mid-October, after a one-week recess. The
committee is the final of four congressional panels to review
the deal. The other three have approved it.
(Reuters 08:08 PM ET 09/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29

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


On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera
wrote in Message-Id: :


Senate Armed Services Committee member John McCain, who helped
stall a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Department proposal. The Pentagon still has "not adequately
justified spending what it now acknowledges will be billions of
dollars more to acquire tankers through a lease," McCain, an
Arizona Republican, said in letters to the armed services
panel's leaders. McCain's new qualms could translate into
further delays for the tanker deal -- a plan to lease a major
weapons system for the first time rather than buy it outright.
(Reuters 04:53 PM ET 09/25/2003)

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



The Pentagon's inspector general may issue a subpoena to BOEING
CO. and the U.S. Air Force for all written materials on a $22.4
billion deal to lease then buy 100 Boeing 767 tankers,
congressional and administration sources said on Monday. They
said Inspector General Joseph Schmitz is considering the
unusual move as he investigates possible impropriety in the
lease proposal that critics including U.S. Sen. John McCain
have blasted as a sweetheart deal for Boeing. The Pentagon's
in-house watchdog agency kicked off its investigation based on
documents provided by Boeing to Senate Commerce Committee
Chairman McCain, an Arizona Republican. But investigators,
including an FBI agent, want to see a complete and full record
of documents related to the case, the sources said.
(Reuters 05:40 PM ET 09/22/2003)

Mo
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Boeing Co (BA) (35.15 +0.26)

The Pentagon urged senators to approve a modified $22.4 billion
deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking
authority to buy 26 of the tankers before their 6-year leases
expire to pare total program costs by $1.2 billion. Deputy
Defense Secretary Paul Wolfowitz said buying the 26 tankers
early, between 2008 and 2010, would add $2.4 billion in initial
budget costs while lowering total program costs and allowing the
Air Force to immediately begin modernizing its 43-year-old fleet
of KC-135 tankers. "The optimum approach must balance the total
cost of the program, the additional funds needed ... and the
delivery schedule for the new capability," he told the Senate
Armed Services Committee, the last of four congressional panels
that must vote on the lease deal.
(Reuters 02:53 PM ET 09/23/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23

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


On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
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----------------------------------------------------------------
President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
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On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera
wrote in Message-Id: :

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08

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On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has criticized the cost of a U.S. Air Force
proposal to lease BOEING CO. 767s as refueling tankers, said on
Friday he would press Air Force Secretary James Roche and other
top Pentagon officials to hand over all records on the deal.
"We'll be asking for as much information as we can get," McCain
said in a telephone interview, 1 day after the Senate Armed
Services Committee on which he serves delayed an expected vote
on a $22.4 billion lease-to-buy plan.
(Reuters 04:23 PM ET 09/05/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera
wrote in Message-Id: :

The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03

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Darleen Druyun, a former Air Force official, offered as early as
October 2001 to meet with investors to stress the low risk of a
deal for the Air Force to lease Boeing tankers, a BOEING CO.
memorandum shows. The Pentagon's Inspector General on Wednesday
launched a formal investigation into whether the Air Force
shared proprietary data with Boeing, an inquiry defense
officials said was focused on Druyun, who joined Boeing in
January 2003 after retiring from the Air Force in November
2002. Boeing denies it received any proprietary data during the
negotiations, and Druyun had declined interview requests. The
company insists Druyun has not been involved in the lease
negotiations since joining the company, adhering firmly to
federal rules for former defense officials. Pentagon
investigators will try to determine if Druyun overstepped her
bounds in those discussions, but congressional sources said it
was clear from a series of emails provided to lawmakers by
Boeing that she played a key role early in the Air Force's
negotiations with Boeing.
(Reuters 08:12 PM ET 09/03/2003)

Mo
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Senate Armed Services Committee Chairman John Warner said his
panel would not rush to a vote on a controversial Air Force
plan to lease 100 BOEING CO. 767 refueling tankers, which has
been dogged by questions about its cost and propriety. "We owe
an obligation to the taxpayers to very carefully assess this
issue," the Virginia Republican said at the opening of a
hearing into the $22.4 billion Air Force proposal to lease and
then buy 100 aerial tankers. Warner said members of his panel
would hold discussions in a closed hearing after taking
testimony from witnesses before he would schedule a vote.
(Reuters 10:26 AM ET 09/04/2003)

Mo
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The U.S. Senate Armed Services Committee has asked Defense
Secretary Donald Rumsfeld to look at leasing just one quarter
of the 100 BOEING CO. 767s sought by the Air Force as refueling
tankers, officials said. The committee will postpone a vote on
the Air Force's plan until it gets a Pentagon analysis, the
officials said.
(Reuters 05:05 PM ET 09/04/2003)

Mo
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On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera
wrote in Message-Id: :


Dozens of email exchanges among BOEING CO., the Air Force and the
Pentagon released on Saturday raised fresh questions about a
controversial $22.5 billion deal to lease, then buy 100 Boeing
767 tankers. The documents were among more than 8,000 provided
to the Senate Commerce Committee as it investigated a deal its
chairman, Sen. John McCain describes as a "military-industrial
rip-off" and a government bailout of Boeing, whose commercial
aircraft sales slumped after the September 2001 hijack attacks.
The documents contain no "smoking guns," congressional sources
say, but they show a close relationship between Boeing and Air
Force officials, including Air Force Secretary James Roche, as
well as details of a rival bid by Airbus SA.
(Reuters 05:11 PM ET 08/30/2003)

Mo
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Critics of a $22.4 billion Air Force proposal to lease, then buy,
100 Boeing 767s as refueling tankers plan to raise financing and
cost concerns at a Senate hearing on Wednesday in a final bid to
block the deal. Defense analysts predict tough questions in the
Senate Commerce Committee and other hearings this week, but say
the need to replace the Air Force's KC-135 tankers, which are on
average 43 years old, will ultimately win the votes needed for
approval. Arizona Republican Sen. John McCain, chairman of the
Commerce Committee, blasts the deal as a government bailout of
BOEING CO., whose commercial aircraft sales slumped after the
September 2001 hijack attacks. The Congressional Budget Office,
the General Accounting Office and several government watchdog
groups are also skeptical of the deal, which has already won
needed approval from three of four congressional committees.
(Reuters 05:06 PM ET 09/02/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera
wrote in Message-Id: :


BOEING CO. rejected published reports that it might have obtained
rival bidder Airbus SAS's proprietary information while
negotiating a proposed $22.5 billion refueling tanker
lease-purchase agreement with the U.S. Air Force. "Boeing
believes we did not receive any proprietary information from
any official on any subject throughout the entire tanker
lease-negotiation process," said Doug Kennett, a spokesman for
the company. Earlier in the day, the Seattle
Post-Intelligencer, citing an unnamed source, reported what it
called new allegations that a senior Air Force official had
"provided Boeing with proprietary information" about Airbus's
offer to supply its own aircraft and modify them for the
refueling mission. The French-German aerospace firm that
controls Airbus said its response to the U.S. Air Force's
original request for tanker bids was "proprietary in nature and
was furnished to the Air Force in confidence."
(Reuters 01:31 PM ET 08/29/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 36a September 1, 2003
-------------------------------------------------------------------

BOEING TO FACE SENATE HEARING ON TANKER LEASE
Boeing is under scrutiny, and the heat is about to intensify on
Wednesday, when a hearing will be held by the Senate Commerce
Committee about the planemaker's $21-billion leasing deal with the
U.S. Air Force for 100 B767 aerial refueling tankers. A report issued
last week by the Congressional Budget Office concluded that "the
proposed transaction would essentially be a purchase of the tankers by
the federal government but at a cost greater than would be incurred
under the normal appropriation and procurement process." The Seattle
Post-Intelligencer reported Friday that Boeing may have had improper
access to information about Airbus's competing proposal for the tanker
deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a
longtime vocal critic of the lease -- which he has termed "corporate
welfare" for Boeing -- will preside over the hearing. Boeing has
already been in trouble for "industrial espionage" this summer.
http://www.avweb.com/eletter/archive...ll.html#185597



On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera
wrote in Message-Id: :


The U.S. Congressional Budget Office said the U.S. Air Force's
plan to lease 100 BOEING CO. 767s as refueling tankers will
cost $1.3 billion to $2 billion more than an outright purchase.
The congressional agency said the proposed lease also failed to
meet four out of six conditions set for government leases by
the White House Office of Management and Budget. In a report
published on its web site, CBO said on average, the Air Force
would spent $161 million for each new refueling tanker in 2002
dollars, compared to a cost of $131 million for an outright
purchase. Two Senate committee plan hearings on the deal next
week. The Air Force has said the deal would be about $150
million more costly than a purchase, but say leasing is
preferable since it would allow the military to begin replacing
its aging fleet of KC-135 refueling tanker far sooner.
(Reuters 04:27 PM ET 08/26/2003)

Mo
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On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera
wrote in Message-Id: :



A key panel in the U.S. House of Representatives on Friday
approved Air Force plans to lease 100 BOEING CO. 767 refueling
tankers, saying the lease would tie up less money in coming
years than a purchase. "(The tanker leasing proposal) allows us
to replace the aging fleet more quickly, while retaining an
essential combat capability over the next several decades,"
Rep. Duncan Hunter, chair of the House Armed Services
Committee, said in a statement late on Friday. "For this
reason, I am endorsing the proposal by the Secretary of Defense
to lease 100 KC-767 aerial refueling tankers from the Boeing
Corporation. The required notification will be sent this
evening."
(Reuters 01:58 AM ET 07/26/2003)

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

On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera
wrote in Message-Id: :


The General Accounting Office raised questions about U.S. Air
Force plans to lease 100 BOEING CO. 767 refueling tankers,
saying the purchase cost of the planes after the 6-year lease
was higher than that reported by the military. GAO's $173.5
million per plane price is substantially higher than the $138.4
million -- $131 million plus $7.4 million for financing costs --
cited by the Air Force, said Neal Curtin, director of defense
capabilities for the congressional investigative agency. Curtin
told the House Armed Services Committee he also had concerns
about the "special purpose entity" created to own the aircraft
and lease them to the Air Force. The Air Force has already won
the approval of the House and Senate Appropriations committees,
and says it hopes to move forward on the deal by September.
(Reuters 10:51 AM ET 07/23/2003)

Mo
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On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera
wrote in Message-Id: :

BOEING CO. said a controversial plan to lease 100 tanker aircraft
to the U.S. Air Force would offer good value and speed badly
needed planes into service. An Air Force analysis delivered to
Congress last Friday showed leasing could cost as much as $1.9
billion more than a straight purchase, more than 10% of the
proposed $17.2 billion deal, which would include an option to
buy for another $4 billion. Critics including Republican Sen.
John McCain of Arizona have blasted the deal as a
taxpayer-funded handout to Boeing, which has been badly hurt by
a slump in orders for its commercial jets since the Sept. 11,
2001 hijack attacks. But Air Force and Boeing officials argue
that the tanker fleet, with an average age of 43 years,
urgently needs an upgrade, saying the maintenance savings from
the 100 proposed new aircraft would be worth $5 billion.
(Reuters 03:24 PM ET 07/14/2003)

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


On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera
wrote in Message-Id: :



-------------------------------------------------------------------
AVflash Volume 9, Number 28a July 7, 2003
-------------------------------------------------------------------

BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------



On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :


The Pentagon is working on an amendment to the proposed fiscal
2004 defense budget as a result of its plan to lease 100 BOEING
CO. 767s as refueling tankers, a top Air Force official said
Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of
staff for installations and logistics, gave no details about
the amount of the request when he testified to the House Armed
Forces Committee's subcommittee on projection forces. The
hearing was the first of several expected on the controversial
proposed $16 billion lease agreement aimed at starting to
replace the Air Force's fleet of 543 KC-135 refueling tankers,
which average 42 years in age.
(Reuters 06:50 PM ET 06/24/2003)

Mo
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On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera
wrote in Message-Id: :

Sen. John McCain, who has called a U.S. military contract with
BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive
Philip Condit requesting documents related to the deal, The Wall
Street Journal reported. McCain, the chair of the U.S. Senate's
Commerce Committee, is seeking all communication between Boeing
and government officials related to the lease, as well as
documents from Boeing's interactions with commercial and
foreign government customers. A representative of Boeing could
not immediately be reached for comment, but a spokesman told
the Journal that Boeing received the letter and planned a
response. Critics of the deal have called on U.S. lawmakers to
delay approval of a $16 billion deal in which the Air Force
will lease planes from Boeing to replace its aging fleet of
refueling aircraft.
(Reuters 05:53 AM ET 06/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17



On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera
wrote in Message-Id: :


Seven independent groups blasted a $16 billion BOEING CO. lease
deal with the Air Force as "a profligate waste of taxpayer
dollars" and said lawmakers should delay its approval until a
criminal investigation into another Boeing contract is
completed. Boeing, anticipating the letter, on Monday bought
full-page advertisements in major U.S. newspapers, admitting
its employees acted improperly during a fierce competition with
LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing
Chairman and Chief Executive Phil Condit said the company had
taken appropriate action after it learned of the errors and
would not tolerate unethical behavior. The Project on
Government Oversight, which also signed the letter, rejected
Condit's statement and said it had documented 36 cases of
misconduct or alleged misconduct by Boeing workers between 1990
and 2002, resulting in about $348 million in fines or penalties,
restitution and settlement fees.
(Reuters 01:00 AM ET 06/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=826...a&s=rb0306 10

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


On Thu, 29 May 2003 13:11:07 GMT, Larry Dighera
wrote:


U.S. senators will hold a hearing in early June on a $16 billion
plan for BOEING CO. to lease 100 modified 767 jets to the Air
Force, but congressional aides and defense experts did not
expect the deal to run into last-minute problems on Capitol
Hill. Despite the Bush administration's approval of the lease,
defense experts said they did not expect it to be the harbinger
of a new Pentagon preference for leasing military equipment.
"It's going to sail through Congress," said Loren Thompson,
head of the Virginia-based Lexington Institute. "I don't see it
being held up. The Air Force wants it, the administration wants
it and some very key people in both houses of Congress want it."
(Reuters 05:19 PM ET 05/27/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=821...a&s=rb0305 27

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

On Sun, 25 May 2003 09:49:28 GMT, Larry Dighera
wrote:


The White House budget office said that scant headway had been
made as far as it was concerned toward a proposed
multibillion-dollar Air Force tanker-lease deal with BOEING CO.
despite a string of high-level meetings. "OMB (Office of
Management and Budget) doesn't see a lot of progress since last
week," said spokesman Trent Duffy. Deputy Defense Secretary Paul
Wolfowitz discussed a revised proposal Tuesday night with both
the Pentagon's chief weapons buyer, Edward Aldridge, and Air
Force secretary James Roche. Wolfowitz is "taking the proposed
tanker lease under advisement," Cheryl Irwin, a Pentagon
spokeswoman, said. She said she did not know how long a
decision might take. The deal has been under discussion since
early last year.
(Reuters 06:53 PM ET 05/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21

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



Top Pentagon officials late on Tuesday began reviewing the Air
Force's plans to lease 100 BOEING CO. 767s as refueling tankers
after the company further lowered its price, sources familiar
with the agreement said. After nonstop negotiations, Boeing had
agreed to lower the price for each of the modified 767-200ER
planes below the figure of $136 million reported last week. The
price of the overall lease deal -- which critics have blasted as
corporate welfare for a company hard hit by a slump in
commercial sales -- was now below $17 billion, including the
terms of the 6-year lease and an Air Force purchase at the end
of the lease, the sources said. The initial deal called for the
Air Force to pay $17 billion for the lease, and $4 billion for
purchase at the end.
(Reuters 05:35 PM ET 05/20/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20

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


On Tue, 13 May 2003 02:14:28 GMT, Larry Dighera
wrote:


BOEING CO. has agreed to reduce by 6% the price of a multibillion
deal to lease 100 767 aircraft to the Air Force as refueling
tankers, defense officials said. The officials, who asked not
to be named, said Boeing officials had agreed to trim the price
of each 767-ER200 aircraft by $9 million to about $141 million
each. The officials said a decision on the deal -- which has
been in the works for over 18 months -- could come soon. But
they said defense officials were at pains to review the
agreement very carefully, since it marked the first time the
U.S. military would lease -- rather than buy -- such a large
number of aircraft. The lease had been expected to cost $17
billion over 6 years, with the Air Force to pay an additional
$4 billion to buy the planes at the end of the term.
(Reuters 02:01 PM ET 05/12/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12

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


On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera
wrote:

The Defense Department still has issues to resolve before
endorsing a multibillion dollar U.S. Air Force proposal to
lease 100 BOEING CO. 767s as refueling tankers, the prime
congressional mover behind the plan said Wednesday. "I'm
talking to all parties, trying to move this thing forward --
and we're still not quite there yet," said Rep. Norm Dicks, the
Washington Democrat who spearheaded the law authorizing the
unusual leasing arrangement. The Air Force and Boeing have been
working on the proposed lease for more than a year. Their
tentative deal involved a $17 billion lease over 6 years, with
an option to purchase the aircraft for another $4 billion at
the end of the lease. By some accounts, the Defense Department
had been expected to sign off any day now following a fresh
round of meetings on Friday and over the weekend that
reportedly lowered the cost to the Air Force.
(Reuters 05:39 PM ET 05/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07

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


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



Pentagon lawyers are taking a final look at a proposed
multibillion Air Force lease of 100 BOEING CO. 767 jets as
refueling tankers and the deal could be approved later Tuesday,
defense officials said. But sources familiar with the
negotiations warned the deal -- which critics blast as a
corporate handout to Boeing -- has been in the works for more
than 18 months and last-minute issues have delayed its approval
more than once. Negotiators from Chicago-based Boeing, the Air
Force and the Office of the Secretary of Defense succeeded over
the weekend in narrowing the differences between the cost of the
deal as estimated by the Air Force and the independent Institute
for Defense Analyses, the officials said. Under the terms of the
original deal, the Air Force would spend $17 billion to lease
the 100 planes for 6 years, paying an additional $4 billion to
buy them at the end of the term.
(Reuters 12:04 PM ET 05/06/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06

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

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



BOEING CO. said its plan to lease 100 767 commercial jets to the
U.S. Air Force as refueling tankers could generate as much as
$2.8 billion in support revenues over the projected life of the
proposed $17 billion lease. John Sams, the Boeing official who
negotiated the deal with the air force, said each aircraft was
projected to spin off $4.8 million a year during the projected
6-year lease, assuming 750 hours of flying time. This figure
would include all spare parts, training and simulators, the
company said, and total $28.8 million per tanker over the 6
years. If the leases were extended, Boeing's take would rise
correspondingly. Under a tentative deal awaiting U.S. Defense
Department's approval, the air force would have an option to
buy the modified 767s at the end of the lease for a combined $4
billion.
(Reuters 11:46 PM ET 05/01/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01

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

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



Top Pentagon and White House officials on May 2 will revisit a
controversial $17 billion plan for the Air Force to lease 100
BOEING CO. 767 jets as refueling tankers, sources familiar with
the matter said on Monday. Boeing and Air Force officials have
been pressing for months to win approval for the unique leasing
arrangement that would also give the Air Force the option to buy
the jets for $4 billion at the end of the lease. The deal is
complicated because the government generally buys rather than
leases equipment like tankers. It has also sparked criticism
from some lawmakers, the Office of Management and Budget and
independent watchdog agencies.
(Reuters 05:34 PM ET 04/21/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21

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

On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
purchasing some of the planes, sources familiar with the matter
said. Also being informally examined is how the price per plane
could drop if another 80 to 100 of the tankers were to be
ordered, the sources said. Boeing and Air Force officials have
been hoping for months to get final clearance to proceed with
the unique leasing arrangement that would also give the Air
Force the option to buy the jets for $4 billion at the end of
the lease. Pentagon spokesman Glenn Flood dismissed any talk of
more than 100 aircraft. "The only plan is for 100. Any increase
above 100 would have to be approved by Congress and the White
House," he said.
(Reuters 05:06 PM ET 04/10/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10


On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera
wrote:


Defense Secretary Donald Rumsfeld is to review a $21 billion Air
Force plan to lease modified 767 BOEING CO. tankers that has
come under fire for its cost and financing, according to
sources familiar with the deal. Defense Undersecretary Edward
"Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make
up a panel that reviews leasing arrangements like the proposed
Boeing deal, are due to brief Rumsfeld. He was not expected to
approve or reject the deal at Monday's meeting, although
sources close to the negotiations said they expected him to
make a decision soon. Under the plan, the Air Force would pay
$17 billion to lease 100 planes to start replacing the
service's fleet of 40-year-old KC-135 tankers. Financial
service companies would set up a "special purpose entity" to
float bonds to buy the tankers from Boeing, and lease them to
the military.
(Reuters 05:33 PM ET 03/07/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7 :


BOEING CO. expects a U.S. decision in the next 2 weeks on a
$17-billion tanker lease contract, a senior company official
said, adding that sales to the UK and others were also under
discussion. The world's largest aircraft maker aims to supply
100 tanker versions of its 767 commercial airliner to replace
the U.S. Air Force's ageing fleet of KC-135 tankers. "I'm
certain we'll have closure on it in the next two weeks," George
Muellner, Boeing senior VP for Air Force systems, told defense
reporters in London. "We've had dialogue with three or four
other countries, other than Italy and Japan," Muellner said.
Muellner said Japan had signed a deal this month and Australia
was interested. Italy signed a deal for four 767-based tankers
last month.
(Reuters 01:55 PM ET 01/29/2003)

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip9 :


Top Pentagon officials aim to decide next week whether to allow
the Air Force to lease 100 modified 767 BOEING CO. tankers to
replace its ageing fleet, Defense Undersecretary Edward
Aldridge said. "It's hard ... It's a major investment,"
Aldridge said of the controversial $17 billion deal, which
would give the Air Force up to 12 new tankers in 2006 and all
100 by 2011. For an additional $4 billion the Air Force would
be able to purchase the jets outright at the end of the lease,
sources familiar with the deal have said. Aldridge, the
Pentagon's chief weapons buyer, favors innovative and flexible
approaches to defense procurement, and his office has
championed streamlined acquisitions rules aimed at getting
weapons to the services more quickly.
(Reuters 03:42 PM ET 02/07/2003)

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5 :


The U.S. Air Force hopes to win approval in Q1 2003 for a
controversial contract to lease 100 767 commercial jets from
BOEING CO., sources familiar with the discussions said on
Monday. The $17 billion lease contract - aimed at replacing the
Air Force's aging fleet of KC-135 tankers -- has been in the
works for over a year and still requires approval by top
Pentagon officials and U.S. lawmakers, who raised questions
last year about the costs of an earlier version of the
contract. The deal now under discussion would give the Air
Force 11 to 12 new tankers in 2006, with all 100 to be
delivered by 2011. For an additional $4 billion, the Air Force
will be able to purchase the jets outright at the end of the
lease, according to sources familiar with the deal.
(Reuters 06:22 PM ET 01/13/2003)

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpr :


BOEING CO. said it no longer expected to wrap up as early as next
month a proposed deal, valued at as much as $18 billion, to
lease 100 aerial refueling tankers to the U.S. Air Force.
Instead, it may take until early next year to reach agreement
with the Air Force, partly because of a new Congress taking
office in January, said Jim Albaugh, president and chief
executive of Boeing's Integrated Defense Systems unit. "We're
in final negotiations with the customer," he told reporters at
a briefing on the company's scheduled first launch of its Delta
4 rocket.
(Reuters 12:52 PM ET 11/14/2002)

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8to :


BOEING CO. said its proposal to lease 100 aerial refueling
tankers would cost the U.S. Air Force about $17 billion, some
$10 billion less than previously estimated, with an option to
purchase the aircraft for another $4 billion. The current
estimate must still be scrutinized by the Pentagon's Cost
Analysis Improvement Group, but if accurate, it could ease
concern in Congress and at the White House over the initial
price tag of $26 billion to $28 billion. "It will turn out to
be more like the $17 to $18 billion we are talking about,"
Boeing's VP for airlift and tanker programs Howard Chambers
told Reuters by telephone. "Over the last six months we have
gotten more clarity."
(Reuters 03:08 PM ET 11/07/2002)

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdr :



GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING
CO. 30 days to pay $2.3 billion to settle an 11-year legal
battle over the Pentagon's abrupt cancellation of the Navy's
A-12 fighter jet. "General Dynamics regards this demand as an
unseemly negotiating tactic, and an apparent effort to gain
advantage during settlement talks," the company said, noting
that it would seek an injunction in federal court if the
settlement talks failed to reach a result before the 30-day
deadline. General Dynamics, Boeing and the Navy were in intense
discussions this summer to settle the matter, with one proposal
calling for the companies to provide goods and services to the
Navy valued at more than $2.5 billion, including discounts on
F-18E/F fighter jets it plans to buy in the future.
(Reuters 03:19 PM ET 09/03/2002)

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7si :



Officials at the U.S. Air Force and aircraft manufacturer BOEING
CO. said on Tuesday they were still hammering out an agreement
to lease 100 commercial Boeing 767s and convert them to aerial
refueling tankers, despite new White House criticism of the
proposed deal. White House Budget Director Mitchell Daniels
said in a recent letter he would not support any proposal that
cost taxpayers more than an outright purchase. "The Air Force
and Boeing are still in negotiations," said Air Force
spokeswoman Capt. Jessica Smith, noting the current fleet of
545 KC-135 tankers had an average age of 41 years. "We're
working to find the best deal for the taxpayers."
(Reuters 05:53 PM ET 08/06/2002)

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

----------------------------------------------------------------

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adel phia.net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka :

More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a
customer when they do not want it!! Get it right or forget it!

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug5 ...

BOEING CO. CFO Mike Sears said the aerospace company expects to
sign a deal to lease air refueling tankers to the U.S. Air
Force by the end of summer. Congress authorized the Air Force
in December to negotiate a leasing deal with Boeing for 100
converted 767s to replace some aging KC-135 tankers. White
House and congressional budget experts had said it would be
cheaper to buy new planes or refurbish the old tankers than
sign a 10-year lease with an estimated cost of $26 billion to
$37 billion.
(Reuters 10:44 AM ET 07/17/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17


On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (45.00 +0.45)

Replacing the oldest U.S. refueling aircraft remains an Air Force
priority, the service's secretary and chief of staff told
Congress Wednesday amid controversy over a proposed lease of
commercial aircraft from BOEING CO. The Air Force said concern
about the 43-year-old KC-135Es in its fleet had been heightened
by the increased pace of aerial refueling after the Sept. 11
attacks. Air Force Secretary James Roche rejected suggestions
that the Air Force could get by with its current refueling
fleet for 15 years or more. Replacement needs to start as soon
as possible, the Air Force said in a separate letter replying
to criticism of the proposed lease deal.
(Reuters 04:34 PM ET 05/15/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
----------------------------------------------------------------


On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

----------------------------------------------------------------
Boeing Co (BA) (44.28 +0.65)

The Senate Armed Services Committee moved on Friday to boost
congressional oversight of a possible $26 billion Air Force
deal to lease BOEING CO. wide-body jets and turn them into
refueling tankers. Sen. John McCain said he was clearing the
way for public hearings on what he has described as a potential
taxpayer "rip-off." A measure adopted by the panel would force
the secretary of the Air Force to get specific funding for any
lease of Boeing 767 tankers -- a process that could delay any
deal to the next budget cycle if enacted into law.
(Reuters 05:15 PM ET 05/10/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1
0



On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:


Boeing Co (BA) (44.41 +1.27)

Plans for the U.S. Air Force to lease BOEING CO. 767 commercial
aircraft as aerial refueling tankers is an expensive solution
that could actually cut overall fuel capacity, according to a
White House analysis obtained on Tuesday. Office of Management
and Budget Director Mitch Daniels said leasing the 100 767s to
start replacing a 40-year-old fleet of KC-135 tankers would
cost up to $26 billion and result in a slightly smaller overall
fuel capacity. A $3.2 billion upgrade of 126 KC-135s would
increase fleet capacity by a similar amount but the Air Force
had not chosen this route, Daniels said in a letter to leasing
critic, Arizona Republican Sen. John McCain.
(Reuters 07:52 PM ET 05/07/2002)

Mo

http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205
07

On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain
Shinno) wrote in Message ID
m:

Boeing expects to begin delivering aerial refueling tankers
based on its 767 wide-body jetliner, including some for Italian
and Japanese forces, by late 2004, with some 100 tankers for the
U.S. Air Force rolling off the line beginning in 2005.

I wonder how many tankers will be delivered each year. Seems a little
long to wait for leased tankers. I wonder when all of them will be
delivered? For $26 billion the USAF better have the option of buying
the tankers for $1 at the end of the lease. And how does the lease
impact the future buy of tankers? When will 767 derivatives start
rolling off the line? Following the delivery of leased tankers, or
after? How is that going to impact the budget?



--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


--

Irrational beliefs ultimately lead to irrational acts.
-- Larry Dighera,


 




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