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Boeing Boondoggle



 
 
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  #11  
Old September 5th 03, 06:20 PM
Larry Dighera
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The Pentagon's Inspector General announced a formal investigation
into whether an Air Force official improperly shared data with
BOEING CO., raising new questions about a $22.4 billion Air
Force deal to lease, then buy 100 767 tankers. Sen. John McCain
cited the investigation and once again blasted the proposed
lease deal at a Senate Commerce Committee hearing, while Alaska
Republican Sen. Ted Stevens underscored what he called the
urgency of quickly replacing the Air Force's aging fleet of
KC-135 tankers due to increased wartime use. McCain said
documents provided by Chicago-based Boeing, the Air Force and
the Pentagon which prompted the investigation showed an
"extremely aggressive sales pitch" for the deal.
(Reuters 04:11 PM ET 09/03/2003)

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


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

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


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

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


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

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

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


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

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

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

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



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

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

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



Top Pentagon and White House officials on May 2 will revisit a
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
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On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera
wrote:


BOEING CO.'s $17 billion plan to lease 100 of its 767 jets to the
U.S. Air Force as refueling tankers faces delay after U.S.
Defense Secretary Donald Rumsfeld sought information on
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

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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

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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #12  
Old September 10th 03, 08:35 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

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

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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

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


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

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


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

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


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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04

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


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


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

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



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

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


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


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

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


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



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

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



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


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

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

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



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

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

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

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


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

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



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

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

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

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


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



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

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



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


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

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

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

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



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


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

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


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

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


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

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

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


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


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

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

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


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

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

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

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


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



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

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

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

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



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

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

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

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



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

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

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

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


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

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


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


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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fk :


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

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os0 :


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

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvhu :


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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtfb :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6hr :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u4 :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfaelr :



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

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptme :



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

Mo
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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

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


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

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

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

Mo

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


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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #13  
Old September 13th 03, 04:18 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

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


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

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

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


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

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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

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


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

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


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

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


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

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


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


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

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



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

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


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


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

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


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



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

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



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


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

Mo
http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26

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

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



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

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

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

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


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

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

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



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

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

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

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


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



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

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



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


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

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

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

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

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

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



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


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

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

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


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


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

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

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

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


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

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

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



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

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

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


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


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

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

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


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

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

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

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


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



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

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

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

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



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

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

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

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



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

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

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

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


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

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


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


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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3f :


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

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os :


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

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvh :


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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtf :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6h :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfael :



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

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptm :



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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adelphia. net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.392 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2 ...

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

Mo

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


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

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

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

Mo

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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #14  
Old September 19th 03, 03:44 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


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


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

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


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

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

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


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

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

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

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



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

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

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

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



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

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

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

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



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

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

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

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


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

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


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


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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3 :


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

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7o :


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

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovv :


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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojt :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6 :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9 :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfae :



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

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbpt :



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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adelphia .net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.39 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd ...

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

Mo

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


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

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

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

Mo

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


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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #15  
Old September 26th 03, 07:47 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



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
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

----------------------------------------------------------------
President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


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

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

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


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

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

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


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

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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

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


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

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


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

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


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

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


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


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

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



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

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02

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


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


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

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29

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


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



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

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



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


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

Mo
http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26

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

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

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


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


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

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

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

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


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

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

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



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

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

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


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


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

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

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


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

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

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

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


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



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

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

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

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



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

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

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

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



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

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

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

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


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

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


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


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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh :


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

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7 :


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

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fov :


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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreoj :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfa :



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

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbp :



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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@adelphi a.net (W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3 :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531s ...

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

Mo

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


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

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

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

Mo

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


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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #16  
Old September 27th 03, 11:01 AM
John Keeney
external usenet poster
 
Posts: n/a
Default

Damn it, I thought I had this "conversation" successfully
dumped in the bit bucket.

Larry, if you must continue with these, could you at least limit
the quotes to the last dozen messages?


  #17  
Old October 2nd 03, 12:01 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default


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
http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25

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



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

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



Boeing Co (BA) (35.15 +0.26)

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

Mo
http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23

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


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


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

----------------------------------------------------------------
President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


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

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11

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


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

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08

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


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

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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03

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


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

Mo
http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03

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


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

Mo
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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

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


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

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

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



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

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

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

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



Top Pentagon and White House officials on May 2 will revisit a
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
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----------

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


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


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
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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

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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

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,

  #18  
Old October 6th 03, 12:33 AM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



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
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


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

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11

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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
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
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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpre :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7 :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrp :



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

Mo
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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

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


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

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

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

Mo

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


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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

  #19  
Old October 8th 03, 07:16 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



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

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

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

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

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

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


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

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


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


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
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----------------------------------------------------------------
President George W. Bush backed a controversial Air Force plan to
lease BOEING 767 aircraft as refueling tankers despite criticism
from Congress, according to an interview. "I do support it," he
said in an interview with the Seattle Post-Intelligencer and
other regional newspapers. Senate Armed Services Committee
Chairman John Warner, a Virginia Republican, and Carl Levin of
Michigan, the panel's top Democrat, have asked Defense
Secretary Donald Rumsfeld to consider slashing the Air Force
proposal to lease and then buy 100 767s for $22.4 billion. The
senators have suggested leasing no more than 25 767s while
getting the rest of any needed tankers through standard
purchase procedures. Air Force Secretary James Roche said the
Air Force was still working on a lease-to-own deal, a possible
reference to the up to 25 aircraft that Warner and Levin have
suggested.
(Reuters 01:34 PM ET 09/17/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17

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


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

Sen. John McCain said that BOEING CO. appeared to have improperly
slanted the Pentagon process that led to its troubled $22.4
billion plan to lease then sell modified refueling tankers to
the Air Force. "To the extent that Boeing did so, its conduct
might have constituted an organizational conflict of interest
or anti-competitive behavior," he said in pressing Joseph
Schmitz, the Defense Department inspector general, to expand an
inquiry into the matter. In a separate letter, McCain, a member
of the Armed Services Committee, called on Defense Secretary
Donald Rumsfeld to provide all records relating to the lease
proposal from both Air Force Secretary James Roche and the
Pentagon's acting chief weapons buyer, Michael Wynne.
(Reuters 08:38 PM ET 09/11/2003)

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


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

The U.S. Air Force on Monday said it expected to respond by early
next week to a letter from the Senate Armed Services Committee
proposing a scaled-down lease of 25 BOEING CO. 767s tankers.
"We're in the process of preparing our letter," said Air Force
spokeswoman Gloria Cales. "We should have our response pulled
together later this week or early next week." Cales gave no
details, but Air Force acquisitions chief Marvin Sambur last
week said it would be "significantly more expensive" to lease
fewer airplanes, due to lost volume discounts and the impact of
inflation. Once the Air Force completed its response, it would
go to Defense Secretary Donald Rumsfeld for approval, she said.
(Reuters 06:17 PM ET 09/08/2003)

Mo
http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08

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


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

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

Mo
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

Mo
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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
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
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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
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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

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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
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

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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

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

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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,

  #20  
Old October 10th 03, 03:53 PM
Larry Dighera
external usenet poster
 
Posts: n/a
Default



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

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

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

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

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

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

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

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

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

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


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

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


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


Senate Armed Services Committee member John McCain, who helped
stall a $22.4 billion Air Force plan to lease then buy BOEING
CO. tankers, rejected as "non-responsive" a modified Defense
Department proposal. The Pentagon still has "not adequately
justified spending what it now acknowledges will be billions of
dollars more to acquire tankers through a lease," McCain, an
Arizona Republican, said in letters to the armed services
panel's leaders. McCain's new qualms could translate into
further delays for the tanker deal -- a plan to lease a major
weapons system for the first time rather than buy it outright.
(Reuters 04:53 PM ET 09/25/2003)

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



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

Mo
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Boeing Co (BA) (35.15 +0.26)

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

Mo
http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23

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


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


The Pentagon's inspector general has told Congress he plans a
formal investigation of possible impropriety involving the U.S.
Air Force's $22.4 billion proposal to lease then buy BOEING 767
aircraft as refueling tankers, a U.S. lawmaker said on
Wednesday. The inspector general, Joseph Schmitz, has concluded
that "sufficient credible information exists to warrant" a
formal investigation, said Sen. John McCain, an Arizona
Republican who has denounced the lease proposal as a sweetheart
deal for Boeing. "Up to now, it appears that the interests of
taxpayers have been subordinated to those of Boeing," McCain
said in disclosing the upgraded probe. In recent weeks, the
Pentagon's in-house watchdog has carried out a preliminary
inquiry into, among other things, whether an Air Force official
gave Boeing proprietary pricing data from Airbus, a rival for
the deal, Congressional staffmembers said.
(Reuters 10:50 PM ET 09/17/2003)

Mo
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
http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05

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


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

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

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

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

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

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


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

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

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



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

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

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


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

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

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

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

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


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



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

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



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


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

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

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

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



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


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

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

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


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


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

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

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

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


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

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

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



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

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

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


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


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

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

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


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

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

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

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


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



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

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

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

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



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

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

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

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



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

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

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

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


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

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


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


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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d :


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

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


On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip :


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

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

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o :


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

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

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbp :


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

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

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


On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8t :


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

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

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjv :



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

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




On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qd :



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

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

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


On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7s :



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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
ballensr@ade lphia.net (W. D. Allen) wrote in Message ID
EMCZ8.6962$k :

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug ...

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

Mo

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


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

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

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

Mo

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


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

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

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

Mo

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



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


Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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



--

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

 




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