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#41
February 12th 04, 02:43 PM
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Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ================================================= =============== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ================================================ ================ On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 =============================================== ================= U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ============================================== ================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ============================================= =================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ============================================ ==================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ========================================= ======================= BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ====================================== ========================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 =================================== ============================= A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ================================== ============================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ================================== ============================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ================================= =============================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 =============================== ================================= On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ============================= =================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ============================ ==================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ============================ ==================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 =========================== ===================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ======================== ======================================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ====================== ========================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ===================== =========================================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================== ============================================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ================ ================================================ On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed. Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Government Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitutio n 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 multibilli on-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manageme nt and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowit z discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Force secretary James Roche. Wolfowitz is "taking the proposed tanker lease under advisement," Cheryl Irwin, a Pentagon spokeswoma n, said. She said she did not know how long a decision might take. The deal has been under discussion since early last year. (Reuters 06:53 PM ET 05/21/2003) Mo 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 corporat e welfare for a company hard hit by a slump in commerci al 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 agreeme nt 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. (Reuter s 02:01 PM ET 05/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- On Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wrote: The Defense Department still has issues to resolve before endorsin g a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congress ional mover behind the plan said Wednesday. "I'm talkin g to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washingt on Democrat who spearheaded the law authorizing the unusua l leasing arrangement. The Air Force and Boeing have been workin g on the proposed lease for more than a year. Their tentativ e deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reported ly lowered the cost to the Air Force. (Reute rs 05:39 PM ET 05/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- On Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wrote: Pentago n lawyers are taking a final look at a proposed multibi llion Air Force lease of 100 BOEING CO. 767 jets as refueli ng tankers and the deal could be approved later Tuesday, defen se officials said. But sources familiar with the negotia tions warned the deal -- which critics blast as a corpora te handout to Boeing -- has been in the works for more than 18 months and last-minute issues have delayed its approval more than once. Negotiators from Chicago-based Boeing, the Air Force and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the origina l deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reuter s 12:04 PM ET 05/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 ======= ================================================== ======= On Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wrote : BOEI NG CO. said its plan to lease 100 767 commercial jets to the U.S. Air Force as refueling tankers could generate as much as $2.8 billion in support revenues over the projected life of the propos ed $17 billion lease. John Sams, the Boeing official who negoti ated the deal with the air force, said each aircraft was projec ted to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure woul d include all spare parts, training and simulators, the compan y said, and total $28.8 million per tanker over the 6 year s. If the leases were extended, Boeing's take would rise corres pondingly. Under a tentative deal awaiting U.S. Defense Depart ment's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billio n. (Reute rs 11:46 PM ET 05/01/2003) More : 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 wrot e: Top Pentagon and White House officials on May 2 will revisit a contr oversial $17 billion plan for the Air Force to lease 100 BOEIN G CO. 767 jets as refueling tankers, sources familiar with the matter said on Monday. Boeing and Air Force officials have bee n pressing for months to win approval for the unique leasing arran gement 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 compl icated because the government generally buys rather than lease s equipment like tankers. It has also sparked criticism fro m some lawmakers, the Office of Management and Budget and indep endent watchdog agencies. (Reut ers 05:34 PM ET 04/21/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ===== ================================================== ========= On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrote : BOEI NG CO.'s $17 billion plan to lease 100 of its 767 jets to the U. S. Air Force as refueling tankers faces delay after U.S. Defe nse Secretary Donald Rumsfeld sought information on purc hasing some of the planes, sources familiar with the matter said . Also being informally examined is how the price per plane coul d drop if another 80 to 100 of the tankers were to be orde red, the sources said. Boeing and Air Force officials have be en hoping for months to get final clearance to proceed with th e unique leasing arrangement that would also give the Air Forc e the option to buy the jets for $4 billion at the end of th e lease. Pentagon spokesman Glenn Flood dismissed any talk of mo re than 100 aircraft. "The only plan is for 100. Any increase abov e 100 would have to be approved by Congress and the White Hous e," he said. (Reu ters 05:06 PM ET 04/10/2003) More : http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 On Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wrot e: Def ense Secretary Donald Rumsfeld is to review a $21 billion Air For ce plan to lease modified 767 BOEING CO. tankers that has com e under fire for its cost and financing, according to sou rces familiar with the deal. Defense Undersecretary Edward "Pe te" Aldridge and Pentagon Comptroller Dov Zakheim, who make u p a panel that reviews leasing arrangements like the proposed Boe ing deal, are due to brief Rumsfeld. He was not expected to app rove or reject the deal at Monday's meeting, although sou rces close to the negotiations said they expected him to mak e a decision soon. Under the plan, the Air Force would pay $ 17 billion to lease 100 planes to start replacing the ser vice's fleet of 40-year-old KC-135 tankers. Financial ser vice companies would set up a "special purpose entity" to flo at bonds to buy the tankers from Boeing, and lease them to t he military. (Re uters 05:33 PM ET 03/07/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 O n Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera (La rry Dighera) wrote in Message ID fj : BO EING CO. expects a U.S. decision in the next 2 weeks on a $1 7-billion tanker lease contract, a senior company official sa id, adding that sales to the UK and others were also under di scussion. The world's largest aircraft maker aims to supply 10 0 tanker versions of its 767 commercial airliner to replace th e U.S. Air Force's ageing fleet of KC-135 tankers. "I'm ce rtain we'll have closure on it in the next two weeks," George Mu ellner, Boeing senior VP for Air Force systems, told defense re porters in London. "We've had dialogue with three or four ot her countries, other than Italy and Japan," Muellner said. Mu ellner said Japan had signed a deal this month and Australia wa s interested. Italy signed a deal for four 767-based tankers la st month. (R euters 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 (L arry Dighera) wrote in Message ID 4 : T op Pentagon officials aim to decide next week whether to allow t he Air Force to lease 100 modified 767 BOEING CO. tankers to r eplace its ageing fleet, Defense Undersecretary Edward A ldridge said. "It's hard ... It's a major investment," A ldridge said of the controversial $17 billion deal, which w ould give the Air Force up to 12 new tankers in 2006 and all 1 00 by 2011. For an additional $4 billion the Air Force would b e able to purchase the jets outright at the end of the lease, s ources familiar with the deal have said. Aldridge, the P entagon's chief weapons buyer, favors innovative and flexible a pproaches to defense procurement, and his office has c hampioned streamlined acquisitions rules aimed at getting w eapons to the services more quickly. ( Reuters 03:42 PM ET 02/07/2003) M o http://q1.schwab.com/s/r?l=248&a=773...a&s=rb0302 07 O n Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera ( Larry Dighera) wrote in Message ID : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ================================================= =============== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============================================== ================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID et: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@ne ws-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget? 
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Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ================================================ ================ On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 =============================================== ================= On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================================== ================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ============================================= =================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ============================================ ==================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 =========================================== ===================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ======================================== ======================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ===================================== =========================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================================== ============================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ================================= =============================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ================================= =============================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ================================ ================================ On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============================== ================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ============================ ==================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 =========================== ===================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 =========================== ===================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ========================== ====================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ======================= ========================================= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ===================== =========================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ==================== ============================================ On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================= =============================================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 =============== ================================================= On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is completed . Boeing, anticipating the letter, on Monday bought full-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKHEED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairman and Chief Executive Phil Condit said the company had taken appropriate action after it learned of the errors and would not tolerate unethical behavior. The Project on Governmen t Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of misconduc t or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restituti on 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 multibill ion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Managemen t and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowi tz 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 spokeswom an, said. She said she did not know how long a decisio n might take. The deal has been under discussion since early last year. (Reuter s 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 corpora te welfare for a company hard hit by a slump in commercia l sales -- was now below $17 billion, including the terms of the 6-year lease and an Air Force purchase at the end of the lease, the sources said. The initial deal called for the Air Force to pay $17 billion for the lease, and $4 billion for purchas e at the end. (Reuter s 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 tanker s, defense officials said. The officials, who asked not to be named, said Boeing officials had agreed to trim the price of each 767-ER200 aircraft by $9 million to about $141 million each. The officials said a decision on the deal -- which has been in the works for over 18 months -- could come soon. But they said defense officials were at pains to review the agreemen t very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large number of aircraft. The lease had been expected to cost $17 billio n over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reute rs 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 endorsi ng a multibillion dollar U.S. Air Force proposal to lease 100 BOEING CO. 767s as refueling tankers, the prime congres sional mover behind the plan said Wednesday. "I'm talki ng to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washing ton Democrat who spearheaded the law authorizing the unusu al leasing arrangement. The Air Force and Boeing have been worki ng on the proposed lease for more than a year. Their tentati ve deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at the end of the lease. By some accounts, the Defense Department had been expected to sign off any day now following a fresh round of meetings on Friday and over the weekend that reporte dly lowered the cost to the Air Force. (Reuter s 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 : Pentag on lawyers are taking a final look at a proposed multib illion Air Force lease of 100 BOEING CO. 767 jets as refuel ing tankers and the deal could be approved later Tuesday, defens e officials said. But sources familiar with the negoti ations warned the deal -- which critics blast as a corpor ate 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 Forc e and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the deal as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the origin al deal, the Air Force would spend $17 billion to lease the 100 planes for 6 years, paying an additional $4 billion to buy them at the end of the term. (Reute rs 12:04 PM ET 05/06/2003) More : 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 wrot e: BOEIN G CO. said its plan to lease 100 767 commercial jets to the U.S . Air Force as refueling tankers could generate as much as $2. 8 billion in support revenues over the projected life of the propo sed $17 billion lease. John Sams, the Boeing official who negot iated the deal with the air force, said each aircraft was proje cted to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure wou ld include all spare parts, training and simulators, the compa ny said, and total $28.8 million per tanker over the 6 years . If the leases were extended, Boeing's take would rise corre spondingly. Under a tentative deal awaiting U.S. Defense Depar tment's approval, the air force would have an option to buy the modified 767s at the end of the lease for a combined $4 billi on. (Reut ers 11:46 PM ET 05/01/2003) Mor e: 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 : To p Pentagon and White House officials on May 2 will revisit a cont roversial $17 billion plan for the Air Force to lease 100 BOEI NG CO. 767 jets as refueling tankers, sources familiar with th e matter said on Monday. Boeing and Air Force officials have be en pressing for months to win approval for the unique leasing arra ngement that would also give the Air Force the option to buy th e jets for $4 billion at the end of the lease. The deal is comp licated because the government generally buys rather than leas es equipment like tankers. It has also sparked criticism fr om some lawmakers, the Office of Management and Budget and inde pendent watchdog agencies. (Reu ters 05:34 PM ET 04/21/2003) More : http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 ==== ================================================== ========== On Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wrot e: BOE ING 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. Def ense Secretary Donald Rumsfeld sought information on pur chasing some of the planes, sources familiar with the matter sai d. Also being informally examined is how the price per plane cou ld drop if another 80 to 100 of the tankers were to be ord ered, the sources said. Boeing and Air Force officials have bee n hoping for months to get final clearance to proceed with t he unique leasing arrangement that would also give the Air For ce the option to buy the jets for $4 billion at the end of t he lease. Pentagon spokesman Glenn Flood dismissed any talk of mor e than 100 aircraft. "The only plan is for 100. Any increase abo ve 100 would have to be approved by Congress and the White Hou se," he said. (Re uters 05:06 PM ET 04/10/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 O n Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera wro te: De fense Secretary Donald Rumsfeld is to review a $21 billion Air Fo rce plan to lease modified 767 BOEING CO. tankers that has co me under fire for its cost and financing, according to so urces familiar with the deal. Defense Undersecretary Edward "P ete" Aldridge and Pentagon Comptroller Dov Zakheim, who make up a panel that reviews leasing arrangements like the proposed Bo eing deal, are due to brief Rumsfeld. He was not expected to ap prove or reject the deal at Monday's meeting, although so urces close to the negotiations said they expected him to ma ke a decision soon. Under the plan, the Air Force would pay $1 7 billion to lease 100 planes to start replacing the se rvice's fleet of 40-year-old KC-135 tankers. Financial se rvice companies would set up a "special purpose entity" to fl oat bonds to buy the tankers from Boeing, and lease them to th e military. (R euters 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 (L arry Dighera) wrote in Message ID f : B OEING CO. expects a U.S. decision in the next 2 weeks on a $ 17-billion tanker lease contract, a senior company official s aid, adding that sales to the UK and others were also under d iscussion. The world's largest aircraft maker aims to supply 1 00 tanker versions of its 767 commercial airliner to replace t he U.S. Air Force's ageing fleet of KC-135 tankers. "I'm c ertain we'll have closure on it in the next two weeks," George M uellner, Boeing senior VP for Air Force systems, told defense r eporters in London. "We've had dialogue with three or four o ther countries, other than Italy and Japan," Muellner said. M uellner said Japan had signed a deal this month and Australia w as interested. Italy signed a deal for four 767-based tankers l ast month. ( Reuters 01:55 PM ET 01/29/2003) M o http://q1.schwab.com/s/r?l=248&a=768...a&s=rb0301 29 O n Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera ( Larry Dighera) wrote in Message ID : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ================================================ ================ On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============================================= =================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID . net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@new s-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================================== ============== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 =============================================== ================= On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================================== ================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================================= =================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ============================================ ==================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 =========================================== ===================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ========================================== ====================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ======================================= ========================= BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ==================================== ============================ Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================================= =============================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ================================ ================================ The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ================================ ================================ The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 =============================== ================================= On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============================= =================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 =========================== ===================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ========================== ====================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ========================== ====================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ========================= ======================================= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ====================== ========================================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ==================== ============================================ On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 =================== ============================================= On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ================ ================================================ On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ============== ================================================== On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documents from Boeing's interactions with commercial and foreign government customers. A representative of Boeing could not immediately be reached for comment, but a spokesman told the Journal that Boeing received the letter and planned a response. Critics of the deal have called on U.S. lawmakers to delay approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refueling aircraft. (Reuters 05:53 AM ET 06/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=829...a&s=rb0306 17 On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera wrote in Message-Id: : Seven independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollars" and said lawmakers should delay its approval until a criminal investigation into another Boeing contract is complete d. 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 Governme nt Oversight, which also signed the letter, rejected Condit's statement and said it had documented 36 cases of miscondu ct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitutio n 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." (Reuter s 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 multibil lion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manageme nt and Budget) doesn't see a lot of progress since last week," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowit z 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 spokeswo man, said. She said she did not know how long a decisi on might take. The deal has been under discussion since early last year. (Reute rs 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 corporat e welfare for a company hard hit by a slump in commerci al 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 purcha se at the end. (Reute rs 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: BOEIN G 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 agreeme nt very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large numbe r of aircraft. The lease had been expected to cost $17 billi on over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reuter s 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 endors ing a multibillion dollar U.S. Air Force proposal to leas e 100 BOEING CO. 767s as refueling tankers, the prime congre ssional mover behind the plan said Wednesday. "I'm talkin g to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washin gton Democrat who spearheaded the law authorizing the unusua l leasing arrangement. The Air Force and Boeing have been workin g on the proposed lease for more than a year. Their tentat ive 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 roun d of meetings on Friday and over the weekend that report edly lowered the cost to the Air Force. (Reute rs 05:39 PM ET 05/07/2003) More : 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 wrot e: Penta gon lawyers are taking a final look at a proposed multi billion Air Force lease of 100 BOEING CO. 767 jets as refue ling tankers and the deal could be approved later Tuesday, defen se officials said. But sources familiar with the negot iations warned the deal -- which critics blast as a corpo rate handout to Boeing -- has been in the works for more tha n 18 months and last-minute issues have delayed its approval mor e than once. Negotiators from Chicago-based Boeing, the Air For ce and the Office of the Secretary of Defense succeeded over the weekend in narrowing the differences between the cost of the dea l as estimated by the Air Force and the independent Institute for Defense Analyses, the officials said. Under the terms of the origi nal 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. (Reut ers 12:04 PM ET 05/06/2003) Mor e: 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 : BOEI NG 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 prop osed $17 billion lease. John Sams, the Boeing official who nego tiated the deal with the air force, said each aircraft was proj ected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure woul d include all spare parts, training and simulators, the comp any said, and total $28.8 million per tanker over the 6 year s. If the leases were extended, Boeing's take would rise corr espondingly. Under a tentative deal awaiting U.S. Defense Depa rtment's approval, the air force would have an option to bu y the modified 767s at the end of the lease for a combined $4 bill ion. (Reu ters 11:46 PM ET 05/01/2003) More : 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 wrot e: T op Pentagon and White House officials on May 2 will revisit a con troversial $17 billion plan for the Air Force to lease 100 BOE ING CO. 767 jets as refueling tankers, sources familiar with t he matter said on Monday. Boeing and Air Force officials have bee n pressing for months to win approval for the unique leasing arr angement that would also give the Air Force the option to buy t he jets for $4 billion at the end of the lease. The deal is com plicated because the government generally buys rather than lea ses equipment like tankers. It has also sparked criticism fro m some lawmakers, the Office of Management and Budget and ind ependent watchdog agencies. (Re uters 05:34 PM ET 04/21/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 === ================================================== =========== O n Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera wro te: BO EING 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. De fense Secretary Donald Rumsfeld sought information on pu rchasing some of the planes, sources familiar with the matter sa id. Also being informally examined is how the price per plane co uld drop if another 80 to 100 of the tankers were to be or dered, the sources said. Boeing and Air Force officials have be en hoping for months to get final clearance to proceed with th e unique leasing arrangement that would also give the Air Fo rce the option to buy the jets for $4 billion at the end of th e lease. Pentagon spokesman Glenn Flood dismissed any talk of mo re than 100 aircraft. "The only plan is for 100. Any increase ab ove 100 would have to be approved by Congress and the White Ho use," he said. (R euters 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 wr ote: D efense Secretary Donald Rumsfeld is to review a $21 billion Air F orce plan to lease modified 767 BOEING CO. tankers that has c ome under fire for its cost and financing, according to s ources familiar with the deal. Defense Undersecretary Edward " Pete" Aldridge and Pentagon Comptroller Dov Zakheim, who make u p a panel that reviews leasing arrangements like the proposed B oeing deal, are due to brief Rumsfeld. He was not expected to a pprove or reject the deal at Monday's meeting, although s ources close to the negotiations said they expected him to m ake a decision soon. Under the plan, the Air Force would pay $ 17 billion to lease 100 planes to start replacing the s ervice's fleet of 40-year-old KC-135 tankers. Financial s ervice companies would set up a "special purpose entity" to f loat bonds to buy the tankers from Boeing, and lease them to t he military. ( Reuters 05:33 PM ET 03/07/2003) M o http://q1.schwab.com/s/r?l=248&a=785...a&s=rb0303 07 O n Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera ( Larry Dighera) wrote in Message ID : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 =============================================== ================= On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ============================================ ==================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID .net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@ne ws-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================================= =============== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================================== ================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================================= =================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ============================================ ==================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 =========================================== ===================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================================== ====================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ========================================= ======================= On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ====================================== ========================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 =================================== ============================= Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ================================ ================================ A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 =============================== ================================= The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 =============================== ================================= The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============================== ================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ============================ ==================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========================== ====================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ========================= ======================================= The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ========================= ======================================= On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======================== ======================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ===================== =========================================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 =================== ============================================= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================== ============================================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 =============== ================================================= On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilities for the congressional investigative agency. Curtin told the House Armed Services Committee he also had concerns about the "special purpose entity" created to own the aircraft and lease them to the Air Force. The Air Force has already won the approval of the House and Senate Appropriations committees, and says it hopes to move forward on the deal by September. (Reuters 10:51 AM ET 07/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=844...a&s=rb0307 23 ---------------------------------------------------------------- On Tue, 15 Jul 2003 10:02:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said a controversial plan to lease 100 tanker aircraft to the U.S. Air Force would offer good value and speed badly needed planes into service. An Air Force analysis delivered to Congress last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the proposed $17.2 billion deal, which would include an option to buy for another $4 billion. Critics including Republican Sen. John McCain of Arizona have blasted the deal as a taxpayer-funded handout to Boeing, which has been badly hurt by a slump in orders for its commercial jets since the Sept. 11, 2001 hijack attacks. But Air Force and Boeing officials argue that the tanker fleet, with an average age of 43 years, urgently needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuters 03:24 PM ET 07/14/2003) Mo http://q1.schwab.com/s/r?l=248&a=840...a&s=rb0307 14 ============= ================================================== = On Mon, 07 Jul 2003 10:19:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 28a July 7, 2003 ------------------------------------------------------------------- BOEING GETS AID FUNDS?... It's the U.S.'s largest exporter and by far its largest aerospace company, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracting the attention of critics who claim Boeing is drawing too much from the government trough. The Citizens Against Government Waste (CAGW) has formally asked the House Armed Services Subcommittee to oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers to the Air Force. The CAGW claims upgrading the existing fleet of 127 707-based KC-135s would cost $3.8 billion and it also points out that after leasing the 767s for 10 years the planes go back to Boeing. The company is also (according to some) seeing some extremely generous offers from states and towns as it dangles the carrot of 1,000 jobs to be won by the location that will build its new 7E7 Dreamliner. http://www.avweb.com/newswire/9_28a/...85269-1.html#2 ------------------------------------------------------------------ On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera wrote in Message-Id: : The Pentagon is working on an amendment to the proposed fiscal 2004 defense budget as a result of its plan to lease 100 BOEING CO. 767s as refueling tankers, a top Air Force official said Tuesday. Air Force Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, gave no details about the amount of the request when he testified to the House Armed Forces Committee's subcommittee on projection forces. The hearing was the first of several expected on the controversial proposed $16 billion lease agreement aimed at starting to replace the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuters 06:50 PM ET 06/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=833...a&s=rb0306 24 ---------------------------------------------------------------- On Wed, 18 Jun 2003 20:15:49 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has called a U.S. military contract with BOEING CO. a "rip-off," sent a letter to Boeing Chief Executive Philip Condit requesting documents related to the deal, The Wall Street Journal reported. McCain, the chair of the U.S. Senate's Commerce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as document s 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 refuelin g 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 crimina l 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 LOCKHEE D MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairma n 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 Governmen t Oversight, which also signed the letter, rejected Condit' s statement and said it had documented 36 cases of misconduc t or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restituti on and settlement fees. (Reuter s 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, defens e 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." (Reute rs 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 multibi llion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Managem ent and Budget) doesn't see a lot of progress since last week, " said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfowi tz 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 tanke r lease under advisement," Cheryl Irwin, a Pentagon spokesw oman, said. She said she did not know how long a decisio n might take. The deal has been under discussion since early last year. (Reuter s 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 agree d to lower the price for each of the modified 767-200ER plane s below the figure of $136 million reported last week. The price of the overall lease deal -- which critics have blasted as corpora te welfare for a company hard hit by a slump in commerc ial 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 purchas e at the end. (Reuter s 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 : BOEI NG CO. has agreed to reduce by 6% the price of a multibillion deal to lease 100 767 aircraft to the Air Force as refueling tanker s, 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 agreem ent very carefully, since it marked the first time the U.S. military would lease -- rather than buy -- such a large numb er of aircraft. The lease had been expected to cost $17 billio n over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reute rs 02:01 PM ET 05/12/2003) More : 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 wrot e: The Defense Department still has issues to resolve before endor sing a multibillion dollar U.S. Air Force proposal to lea se 100 BOEING CO. 767s as refueling tankers, the prime congr essional mover behind the plan said Wednesday. "I'm talki ng to all parties, trying to move this thing forward -- and we're still not quite there yet," said Rep. Norm Dicks, the Washi ngton Democrat who spearheaded the law authorizing the unusu al leasing arrangement. The Air Force and Boeing have been worki ng on the proposed lease for more than a year. Their tenta tive 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 rou nd of meetings on Friday and over the weekend that repor tedly lowered the cost to the Air Force. (Reut ers 05:39 PM ET 05/07/2003) Mor e: 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 : Pent agon lawyers are taking a final look at a proposed mult ibillion Air Force lease of 100 BOEING CO. 767 jets as refu eling tankers and the deal could be approved later Tuesday, defe nse officials said. But sources familiar with the nego tiations warned the deal -- which critics blast as a corp orate handout to Boeing -- has been in the works for more th an 18 months and last-minute issues have delayed its approval mo re than once. Negotiators from Chicago-based Boeing, the Air Forc e and the Office of the Secretary of Defense succeeded over th e weekend in narrowing the differences between the cost of the de al as estimated by the Air Force and the independent Institute fo r Defense Analyses, the officials said. Under the terms of the orig inal deal, the Air Force would spend $17 billion to lease th e 100 planes for 6 years, paying an additional $4 billion to bu y them at the end of the term. (Reu ters 12:04 PM ET 05/06/2003) More : 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 wrot e: BOE ING 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 pro posed $17 billion lease. John Sams, the Boeing official who neg otiated the deal with the air force, said each aircraft was pro jected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure wou ld include all spare parts, training and simulators, the com pany said, and total $28.8 million per tanker over the 6 yea rs. If the leases were extended, Boeing's take would rise cor respondingly. Under a tentative deal awaiting U.S. Defense Dep artment's approval, the air force would have an option to b uy the modified 767s at the end of the lease for a combined $4 bil lion. (Re uters 11:46 PM ET 05/01/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 === ================================================== =========== O n Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera wro te: To p Pentagon and White House officials on May 2 will revisit a co ntroversial $17 billion plan for the Air Force to lease 100 BO EING CO. 767 jets as refueling tankers, sources familiar with th e matter said on Monday. Boeing and Air Force officials have be en pressing for months to win approval for the unique leasing ar rangement that would also give the Air Force the option to buy th e jets for $4 billion at the end of the lease. The deal is co mplicated because the government generally buys rather than le ases equipment like tankers. It has also sparked criticism fr om some lawmakers, the Office of Management and Budget and in dependent watchdog agencies. (R euters 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 wr ote: B OEING 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. D efense Secretary Donald Rumsfeld sought information on p urchasing some of the planes, sources familiar with the matter s aid. Also being informally examined is how the price per plane c ould drop if another 80 to 100 of the tankers were to be o rdered, the sources said. Boeing and Air Force officials have b een hoping for months to get final clearance to proceed with t he unique leasing arrangement that would also give the Air F orce the option to buy the jets for $4 billion at the end of t he lease. Pentagon spokesman Glenn Flood dismissed any talk of m ore than 100 aircraft. "The only plan is for 100. Any increase a bove 100 would have to be approved by Congress and the White H ouse," he said. ( Reuters 05:06 PM ET 04/10/2003) M o http://q1.schwab.com/s/r?l=248&a=800...a&s=rb0304 10 O n Tue, 11 Mar 2003 01:13:00 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================================== ================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 =========================================== ===================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID a.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@n ews-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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BOEING CO. warned it could take a $310 million charge if the U.S. government does not give it a contract to lease refueling tankers. Discussions between Boeing and the U.S. Air Force to lease 20 and then buy 80 more air refueling tankers have stalled as the Pentagon reviews Boeing's controversial proposed $18 billion tanker program. Several agencies are investigating the company following the November firing of former CFO Michael Sears and another Boeing employee who had been a top U.S. Air Force procurement official. The multibillion-dollar contract would require Boeing to maintain 100 767 refueling tankers, but the deal came under fire when a Congressional Research Service report in October challenged the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support, the company said in a filing with the U.S. SEC. (Reuters 10:24 AM ET 03/05/2004) Mo http://q1.schwab.com/s/r?l=248&a=932...a&s=rb0403 05 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said the Bush administration was facing a tough choice on whether to give Congress emails on a stalled multibillion-dollar deal to purchase BOEING CO. aircraft as mid-air refueling tankers. "The question of the emails is a complicated one," he said in an interview with Reuters. "And it's one that involves not (just) the Department of Defense, but the White House and the Justice Department and all of those who have to make judgments that would create a precedent." Senate Armed Services Committee Chairman John Warner, proclaiming this week what he called a "united front" among panel members, has demanded that the Pentagon hand over the documents for oversight purposes. (Reuters 05:58 PM ET 03/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=932...a&s=rb0403 04 ---------------------------------------------------------------- BOEING CO. said it selected UNITED TECHNOLOGIES CORP.'s Pratt & Whitney division to supply engines for all future 767 air refueling tanker programs. The contract was potentially valued at around $2 billion, according to industry sources. The world's largest aerospace company said the Pratt PW4062 engine will be the standard offering for both domestic and international versions on all future tankers. Pratt beat out General Electric Aircraft Enginesfor the selection, specifically, the CF6-80C2 model, according to Boeing spokesman Paul Guse. Tankers are converted 767 commercial jets that refuel other jets in the air. The U.S. Air Force has been using an aging fleet of KC-135s. Boeing recently put development work for its proposed $18 billion U.S. Air Force tanker program on hold, citing government reviews of the program. A deal for the Air Force to lease 20 and then buy 80 more tankers has been shelved for now, pending various investigations. (Reuters 11:59 AM ET 03/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=931...a&s=rb0403 03 ---------------------------------------------------------------- U.S. Air Force Secretary James Roche said no false information was provided to the Senate even though officials "amended" documents about the threat of corrosion to its current refueling tankers and omitted data they felt could be misunderstood. In a letter to Republican Sen. John McCain obtained by Reuters on Monday, Roche defended the actions of Air Force officials, although he said he had instructed his staff to give Congress precisely what it requested in the future -- and not omit data it considered incorrect or inconsistent. McCain, a member of the Senate Armed Services Committee, has accused the Air Force of trying to hide data that undercut its drive to lease and buy 100 BOEING CO. 767s -- a $27.6 billion deal now on hold pending a criminal probe. (Reuters 05:52 PM ET 03/01/2004) Mo http://q1.schwab.com/s/r?l=248&a=930...a&s=rb0403 01 ---------------------------------------------------------------- U.S. senators demanded the Pentagon hand over internal emails about a $27.6 billion deal to lease and buy BOEING CO. 767s, saying Congress needs the documents to properly oversee the military. Senate Armed Services Committee Chairman John Warner cited what he called a "unified front" and told Air Force Secretary James Roche the issue needed to be resolved, especially since Sen. John McCain had put a hold on Senate confirmation of all civilian nominees for Pentagon jobs in the meantime. "We are a co-equal branch of government and we have our functions to perform and it's essential that we have the appropriate documents to do our oversight," Warner said. Senate Majority Leader Bill Frist also raised the subject with Defense Secretary Donald Rumsfeld at a breakfast meeting, congressional aides said. The Boeing tanker deal is on hold pending several investigations, and McCain is blocking confirmation of four Pentagon nominees -- including Lawrence Di Rita as Rumsfeld's top spokesman -- who have already been approved by the Senate panel. (Reuters 04:44 PM ET 03/02/2004) Mo http://q1.schwab.com/s/r?l=248&a=931...a&s=rb0403 02 ================================================== ============== On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================================ ================ On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================================= =================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================================ ==================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 =========================================== ===================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================================== ====================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================================= ======================= On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================================== ======================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ===================================== =========================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================================== ============================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 =============================== ================================= A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============================== ================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============================== ================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============================= =================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 =========================== ===================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========================= ======================================= On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======================== ======================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======================== ======================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======================= ========================================= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ==================== ============================================ On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================== ============================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================= =============================================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ============== ================================================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilitie s 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 attractin g 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 Commerc e Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documen ts 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 respons e. 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 refueli ng aircraft. (Reuter s 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 dollar s" and said lawmakers should delay its approval until a crimin al investigation into another Boeing contract is complete d. 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 LOCKHE ED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairm an 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 Governme nt Oversight, which also signed the letter, rejected Condit 's statement and said it had documented 36 cases of miscondu ct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitut ion and settlement fees. (Reute rs 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 expec t the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defen se 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." (Reuter s 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 multib illion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manage ment and Budget) doesn't see a lot of progress since last week ," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfow itz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Forc e secretary James Roche. Wolfowitz is "taking the proposed tank er lease under advisement," Cheryl Irwin, a Pentagon spokes woman, said. She said she did not know how long a decisi on might take. The deal has been under discussion since earl y last year. (Reute rs 06:53 PM ET 05/21/2003) More : 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 afte r the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agre ed to lower the price for each of the modified 767-200ER plan es below the figure of $136 million reported last week. The pric e of the overall lease deal -- which critics have blasted as corpor ate welfare for a company hard hit by a slump in commer cial sales -- was now below $17 billion, including the term s 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 purcha se at the end. (Reute rs 05:35 PM ET 05/20/2003) More : 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 wrot e: BOEIN G CO. has agreed to reduce by 6% the price of a multibillion dea l to lease 100 767 aircraft to the Air Force as refueling tanke rs, 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 eac h. The officials said a decision on the deal -- which has bee n in the works for over 18 months -- could come soon. But the y said defense officials were at pains to review the agree ment very carefully, since it marked the first time the U.S . military would lease -- rather than buy -- such a large numbe r of aircraft. The lease had been expected to cost $17 billi on over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reut ers 02:01 PM ET 05/12/2003) Mor e: 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 : Th e Defense Department still has issues to resolve before endo rsing a multibillion dollar U.S. Air Force proposal to leas e 100 BOEING CO. 767s as refueling tankers, the prime cong ressional mover behind the plan said Wednesday. "I'm talk ing to all parties, trying to move this thing forward -- an d we're still not quite there yet," said Rep. Norm Dicks, the Wash ington Democrat who spearheaded the law authorizing the unus ual leasing arrangement. The Air Force and Boeing have been work ing on the proposed lease for more than a year. Their tent ative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at th e end of the lease. By some accounts, the Defense Department ha d been expected to sign off any day now following a fresh roun d of meetings on Friday and over the weekend that repo rtedly lowered the cost to the Air Force. (Reu ters 05:39 PM ET 05/07/2003) More : 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 wrot e: Pen tagon lawyers are taking a final look at a proposed mul tibillion Air Force lease of 100 BOEING CO. 767 jets as ref ueling tankers and the deal could be approved later Tuesday, def ense officials said. But sources familiar with the neg otiations warned the deal -- which critics blast as a cor porate handout to Boeing -- has been in the works for more tha n 18 months and last-minute issues have delayed its approval mor e than once. Negotiators from Chicago-based Boeing, the Air For ce and the Office of the Secretary of Defense succeeded over t he weekend in narrowing the differences between the cost of the dea l as estimated by the Air Force and the independent Institute f or Defense Analyses, the officials said. Under the terms of the ori ginal deal, the Air Force would spend $17 billion to lease t he 100 planes for 6 years, paying an additional $4 billion to b uy them at the end of the term. (Re uters 12:04 PM ET 05/06/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 === ================================================== =========== O n Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wro te: BO EING 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 pr oposed $17 billion lease. John Sams, the Boeing official who ne gotiated the deal with the air force, said each aircraft was pr ojected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure wo uld include all spare parts, training and simulators, the co mpany said, and total $28.8 million per tanker over the 6 ye ars. If the leases were extended, Boeing's take would rise co rrespondingly. Under a tentative deal awaiting U.S. Defense De partment's approval, the air force would have an option to bu y the modified 767s at the end of the lease for a combined $4 bi llion. (R euters 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 wr ote: T op Pentagon and White House officials on May 2 will revisit a c ontroversial $17 billion plan for the Air Force to lease 100 B OEING CO. 767 jets as refueling tankers, sources familiar with t he matter said on Monday. Boeing and Air Force officials have b een pressing for months to win approval for the unique leasing a rrangement that would also give the Air Force the option to buy t he jets for $4 billion at the end of the lease. The deal is c omplicated because the government generally buys rather than l eases equipment like tankers. It has also sparked criticism f rom some lawmakers, the Office of Management and Budget and i ndependent watchdog agencies. ( Reuters 05:34 PM ET 04/21/2003) M o http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 = ================================================== ============= O n Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================================= =================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================================== ====================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID ia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@ news-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ================================================ ================ On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================================= =================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ============================================ ==================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 =========================================== ===================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================================== ====================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ========================================= ======================= On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================================== ======================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ===================================== =========================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================================== ============================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 =============================== ================================= A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============================== ================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============================== ================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============================= =================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 =========================== ===================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ========================= ======================================= On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======================== ======================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======================== ======================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ======================= ========================================= On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ==================== ============================================ On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================== ============================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================= =============================================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation. The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ============== ================================================== On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabilitie s 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 attractin g 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 Commerc e Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documen ts 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 respons e. 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 refueli ng aircraft. (Reuter s 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 dollar s" and said lawmakers should delay its approval until a crimin al investigation into another Boeing contract is complete d. 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 LOCKHE ED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairm an 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 Governme nt Oversight, which also signed the letter, rejected Condit 's statement and said it had documented 36 cases of miscondu ct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitut ion and settlement fees. (Reute rs 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 expec t the deal to run into last-minute problems on Capitol Hill. Despite the Bush administration's approval of the lease, defen se 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." (Reuter s 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 multib illion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manage ment and Budget) doesn't see a lot of progress since last week ," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfow itz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air Forc e secretary James Roche. Wolfowitz is "taking the proposed tank er lease under advisement," Cheryl Irwin, a Pentagon spokes woman, said. She said she did not know how long a decisi on might take. The deal has been under discussion since earl y last year. (Reute rs 06:53 PM ET 05/21/2003) More : 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 afte r the company further lowered its price, sources familiar with the agreement said. After nonstop negotiations, Boeing had agre ed to lower the price for each of the modified 767-200ER plan es below the figure of $136 million reported last week. The pric e of the overall lease deal -- which critics have blasted as corpor ate welfare for a company hard hit by a slump in commer cial sales -- was now below $17 billion, including the term s 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 purcha se at the end. (Reute rs 05:35 PM ET 05/20/2003) More : 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 wrot e: BOEIN G CO. has agreed to reduce by 6% the price of a multibillion dea l to lease 100 767 aircraft to the Air Force as refueling tanke rs, 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 eac h. The officials said a decision on the deal -- which has bee n in the works for over 18 months -- could come soon. But the y said defense officials were at pains to review the agree ment very carefully, since it marked the first time the U.S . military would lease -- rather than buy -- such a large numbe r of aircraft. The lease had been expected to cost $17 billi on over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reut ers 02:01 PM ET 05/12/2003) Mor e: 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 : Th e Defense Department still has issues to resolve before endo rsing a multibillion dollar U.S. Air Force proposal to leas e 100 BOEING CO. 767s as refueling tankers, the prime cong ressional mover behind the plan said Wednesday. "I'm talk ing to all parties, trying to move this thing forward -- an d we're still not quite there yet," said Rep. Norm Dicks, the Wash ington Democrat who spearheaded the law authorizing the unus ual leasing arrangement. The Air Force and Boeing have been work ing on the proposed lease for more than a year. Their tent ative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at th e end of the lease. By some accounts, the Defense Department ha d been expected to sign off any day now following a fresh roun d of meetings on Friday and over the weekend that repo rtedly lowered the cost to the Air Force. (Reu ters 05:39 PM ET 05/07/2003) More : 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 wrot e: Pen tagon lawyers are taking a final look at a proposed mul tibillion Air Force lease of 100 BOEING CO. 767 jets as ref ueling tankers and the deal could be approved later Tuesday, def ense officials said. But sources familiar with the neg otiations warned the deal -- which critics blast as a cor porate handout to Boeing -- has been in the works for more tha n 18 months and last-minute issues have delayed its approval mor e than once. Negotiators from Chicago-based Boeing, the Air For ce and the Office of the Secretary of Defense succeeded over t he weekend in narrowing the differences between the cost of the dea l as estimated by the Air Force and the independent Institute f or Defense Analyses, the officials said. Under the terms of the ori ginal deal, the Air Force would spend $17 billion to lease t he 100 planes for 6 years, paying an additional $4 billion to b uy them at the end of the term. (Re uters 12:04 PM ET 05/06/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 === ================================================== =========== O n Sat, 03 May 2003 04:38:27 GMT, Larry Dighera wro te: BO EING 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 pr oposed $17 billion lease. John Sams, the Boeing official who ne gotiated the deal with the air force, said each aircraft was pr ojected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure wo uld include all spare parts, training and simulators, the co mpany said, and total $28.8 million per tanker over the 6 ye ars. If the leases were extended, Boeing's take would rise co rrespondingly. Under a tentative deal awaiting U.S. Defense De partment's approval, the air force would have an option to bu y the modified 767s at the end of the lease for a combined $4 bi llion. (R euters 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 wr ote: T op Pentagon and White House officials on May 2 will revisit a c ontroversial $17 billion plan for the Air Force to lease 100 B OEING CO. 767 jets as refueling tankers, sources familiar with t he matter said on Monday. Boeing and Air Force officials have b een pressing for months to win approval for the unique leasing a rrangement that would also give the Air Force the option to buy t he jets for $4 billion at the end of the lease. The deal is c omplicated because the government generally buys rather than l eases equipment like tankers. It has also sparked criticism f rom some lawmakers, the Office of Management and Budget and i ndependent watchdog agencies. ( Reuters 05:34 PM ET 04/21/2003) M o http://q1.schwab.com/s/r?l=248&a=804...a&s=rb0304 21 = ================================================== ============= O n Mon, 14 Apr 2003 18:24:19 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================================= =================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================================== ====================== On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Officials at the U.S. Air Force and aircraft manufacturer BOEING CO. said on Tuesday they were still hammering out an agreement to lease 100 commercial Boeing 767s and convert them to aerial refueling tankers, despite new White House criticism of the proposed deal. White House Budget Director Mitchell Daniels said in a recent letter he would not support any proposal that cost taxpayers more than an outright purchase. "The Air Force and Boeing are still in negotiations," said Air Force spokeswoman Capt. Jessica Smith, noting the current fleet of 545 KC-135 tankers had an average age of 41 years. "We're working to find the best deal for the taxpayers." (Reuters 05:53 PM ET 08/06/2002) Mo http://q1.schwab.com/s/r?l=248&a=687...a&s=rb0208 06 ---------------------------------------------------------------- On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen" (W. D. Allen) wrote in Message ID ia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt@ news-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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The U.S. senator who sparked a hold on a proposed $20 billion-plus lease and buy of 100 BOEING CO. aircraft as refueling tankers told Defense Secretary Donald Rumsfeld he was fed up with the Air Force's handling of the matter. "I am becoming increasingly concerned about the Air Force's selective testimony on the requirements for, and merits of, the tanker lease program," John McCain, an Arizona Republican on the Senate Armed Services Committee, wrote Rumsfeld. He singled out the service's second-ranking officer, Vice Chief of Staff Gen. Michael Moseley, who defended the Boeing 767 option at a congressional hearing last week. McCain said Moseley's statements appeared at odds with Rumsfeld's orders to conduct an analysis of alternatives, or AoA, for refurbishing or replacing the aging U.S. KC-135 aerial refueling fleet and related studies. (Reuters 04:05 PM ET 03/12/2004) Mo http://q1.schwab.com/s/r?l=248&a=935...a&s=rb0403 12 ---------------------------------------------------------------- On Sat, 06 Mar 2004 01:19:11 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. warned it could take a $310 million charge if the U.S. government does not give it a contract to lease refueling tankers. Discussions between Boeing and the U.S. Air Force to lease 20 and then buy 80 more air refueling tankers have stalled as the Pentagon reviews Boeing's controversial proposed $18 billion tanker program. Several agencies are investigating the company following the November firing of former CFO Michael Sears and another Boeing employee who had been a top U.S. Air Force procurement official. The multibillion-dollar contract would require Boeing to maintain 100 767 refueling tankers, but the deal came under fire when a Congressional Research Service report in October challenged the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support, the company said in a filing with the U.S. SEC. (Reuters 10:24 AM ET 03/05/2004) Mo http://q1.schwab.com/s/r?l=248&a=932...a&s=rb0403 05 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said the Bush administration was facing a tough choice on whether to give Congress emails on a stalled multibillion-dollar deal to purchase BOEING CO. aircraft as mid-air refueling tankers. "The question of the emails is a complicated one," he said in an interview with Reuters. "And it's one that involves not (just) the Department of Defense, but the White House and the Justice Department and all of those who have to make judgments that would create a precedent." Senate Armed Services Committee Chairman John Warner, proclaiming this week what he called a "united front" among panel members, has demanded that the Pentagon hand over the documents for oversight purposes. (Reuters 05:58 PM ET 03/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=932...a&s=rb0403 04 ---------------------------------------------------------------- BOEING CO. said it selected UNITED TECHNOLOGIES CORP.'s Pratt & Whitney division to supply engines for all future 767 air refueling tanker programs. The contract was potentially valued at around $2 billion, according to industry sources. The world's largest aerospace company said the Pratt PW4062 engine will be the standard offering for both domestic and international versions on all future tankers. Pratt beat out General Electric Aircraft Enginesfor the selection, specifically, the CF6-80C2 model, according to Boeing spokesman Paul Guse. Tankers are converted 767 commercial jets that refuel other jets in the air. The U.S. Air Force has been using an aging fleet of KC-135s. Boeing recently put development work for its proposed $18 billion U.S. Air Force tanker program on hold, citing government reviews of the program. A deal for the Air Force to lease 20 and then buy 80 more tankers has been shelved for now, pending various investigations. (Reuters 11:59 AM ET 03/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=931...a&s=rb0403 03 ---------------------------------------------------------------- U.S. Air Force Secretary James Roche said no false information was provided to the Senate even though officials "amended" documents about the threat of corrosion to its current refueling tankers and omitted data they felt could be misunderstood. In a letter to Republican Sen. John McCain obtained by Reuters on Monday, Roche defended the actions of Air Force officials, although he said he had instructed his staff to give Congress precisely what it requested in the future -- and not omit data it considered incorrect or inconsistent. McCain, a member of the Senate Armed Services Committee, has accused the Air Force of trying to hide data that undercut its drive to lease and buy 100 BOEING CO. 767s -- a $27.6 billion deal now on hold pending a criminal probe. (Reuters 05:52 PM ET 03/01/2004) Mo http://q1.schwab.com/s/r?l=248&a=930...a&s=rb0403 01 ---------------------------------------------------------------- U.S. senators demanded the Pentagon hand over internal emails about a $27.6 billion deal to lease and buy BOEING CO. 767s, saying Congress needs the documents to properly oversee the military. Senate Armed Services Committee Chairman John Warner cited what he called a "unified front" and told Air Force Secretary James Roche the issue needed to be resolved, especially since Sen. John McCain had put a hold on Senate confirmation of all civilian nominees for Pentagon jobs in the meantime. "We are a co-equal branch of government and we have our functions to perform and it's essential that we have the appropriate documents to do our oversight," Warner said. Senate Majority Leader Bill Frist also raised the subject with Defense Secretary Donald Rumsfeld at a breakfast meeting, congressional aides said. The Boeing tanker deal is on hold pending several investigations, and McCain is blocking confirmation of four Pentagon nominees -- including Lawrence Di Rita as Rumsfeld's top spokesman -- who have already been approved by the Senate panel. (Reuters 04:44 PM ET 03/02/2004) Mo http://q1.schwab.com/s/r?l=248&a=931...a&s=rb0403 02 ================================================= =============== On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 =============================================== ================= On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================================ ==================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 =========================================== ===================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ========================================== ====================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================================= ======================= On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ======================================== ======================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================================= ========================= On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ==================================== ============================ BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================================= =============================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ============================== ================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============================= =================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============================= =================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============================ ==================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ========================== ====================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ======================== ======================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======================= ========================================= The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======================= ========================================= On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ====================== ========================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 =================== ============================================= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================= =============================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================ ================================================ On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation . The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ============= ================================================== = On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabiliti es 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 attracti ng 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 propose d $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. (Reuter s 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 Commer ce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as document s from Boeing's interactions with commercial and foreig n 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 refuelin g aircraft. (Reute rs 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 crimina l investigation into another Boeing contract is complet ed. 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 LOCKHEE D MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairma n 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 Governm ent Oversight, which also signed the letter, rejected Condit' s statement and said it had documented 36 cases of miscond uct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitu tion and settlement fees. (Reuter s 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 Forc e, but congressional aides and defense experts did not expe ct the deal to run into last-minute problems on Capitol Hill . Despite the Bush administration's approval of the lease, defens e 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 bein g held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reute rs 05:19 PM ET 05/27/2003) More : 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 wrot e: The White House budget office said that scant headway had been mad e as far as it was concerned toward a proposed multi billion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manag ement and Budget) doesn't see a lot of progress since last week, " said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfo witz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air For ce secretary James Roche. Wolfowitz is "taking the proposed tanke r lease under advisement," Cheryl Irwin, a Pentagon spoke swoman, said. She said she did not know how long a decis ion might take. The deal has been under discussion since ear ly last year. (Reut ers 06:53 PM ET 05/21/2003) Mor e: 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 aft er the company further lowered its price, sources familiar wit h the agreement said. After nonstop negotiations, Boeing had agree d to lower the price for each of the modified 767-200ER plane s below the figure of $136 million reported last week. The pri ce of the overall lease deal -- which critics have blasted as corpo rate welfare for a company hard hit by a slump in comme rcial sales -- was now below $17 billion, including the ter ms 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 purch ase at the end. (Reut ers 05:35 PM ET 05/20/2003) Mor e: 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 : BOEI NG CO. has agreed to reduce by 6% the price of a multibillion de al to lease 100 767 aircraft to the Air Force as refueling tank ers, 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 be en in the works for over 18 months -- could come soon. But th ey said defense officials were at pains to review the agre ement very carefully, since it marked the first time the U. S. military would lease -- rather than buy -- such a large numb er of aircraft. The lease had been expected to cost $17 bill ion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reu ters 02:01 PM ET 05/12/2003) More : 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 wrot e: T he Defense Department still has issues to resolve before end orsing a multibillion dollar U.S. Air Force proposal to lea se 100 BOEING CO. 767s as refueling tankers, the prime con gressional mover behind the plan said Wednesday. "I'm tal king to all parties, trying to move this thing forward -- a nd we're still not quite there yet," said Rep. Norm Dicks, the Was hington Democrat who spearheaded the law authorizing the unu sual leasing arrangement. The Air Force and Boeing have been wor king on the proposed lease for more than a year. Their ten tative deal involved a $17 billion lease over 6 years, with a n option to purchase the aircraft for another $4 billion at t he end of the lease. By some accounts, the Defense Department h ad been expected to sign off any day now following a fresh rou nd of meetings on Friday and over the weekend that rep ortedly lowered the cost to the Air Force. (Re uters 05:39 PM ET 05/07/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- O n Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wro te: Pe ntagon lawyers are taking a final look at a proposed mu ltibillion Air Force lease of 100 BOEING CO. 767 jets as re fueling tankers and the deal could be approved later Tuesday, de fense officials said. But sources familiar with the ne gotiations warned the deal -- which critics blast as a co rporate handout to Boeing -- has been in the works for more th an 18 months and last-minute issues have delayed its approval mo re than once. Negotiators from Chicago-based Boeing, the Air Fo rce and the Office of the Secretary of Defense succeeded over th e weekend in narrowing the differences between the cost of the de al as estimated by the Air Force and the independent Institute fo r Defense Analyses, the officials said. Under the terms of the or iginal deal, the Air Force would spend $17 billion to lease th e 100 planes for 6 years, paying an additional $4 billion to bu y them at the end of the term. (R euters 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 wr ote: B OEING 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 p roposed $17 billion lease. John Sams, the Boeing official who n egotiated the deal with the air force, said each aircraft was p rojected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure w ould include all spare parts, training and simulators, the c ompany said, and total $28.8 million per tanker over the 6 y ears. If the leases were extended, Boeing's take would rise c orrespondingly. Under a tentative deal awaiting U.S. Defense D epartment's approval, the air force would have an option to b uy the modified 767s at the end of the lease for a combined $4 b illion. ( Reuters 11:46 PM ET 05/01/2003) M o http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 = ================================================== ============= O n Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================================ ==================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================================= ======================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8s0q16n7u@new s-server.socal.rr.com: 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 hia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt @news-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 =============================================== ================= On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ============================================ ==================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 =========================================== ===================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ========================================== ====================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ========================================= ======================= On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ======================================== ======================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ======================================= ========================= On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ==================================== ============================ BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================================= =============================== Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ============================== ================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============================= =================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============================= =================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ============================ ==================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ========================== ====================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ======================== ======================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ======================= ========================================= The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ======================= ========================================= On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ====================== ========================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 =================== ============================================= On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================= =============================================== On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ================ ================================================ On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation . The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 ============= ================================================== = On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabiliti es 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 attracti ng 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 propose d $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. (Reuter s 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 Commer ce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as document s from Boeing's interactions with commercial and foreig n 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 refuelin g aircraft. (Reute rs 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 crimina l investigation into another Boeing contract is complet ed. 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 LOCKHEE D MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairma n 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 Governm ent Oversight, which also signed the letter, rejected Condit' s statement and said it had documented 36 cases of miscond uct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restitu tion and settlement fees. (Reuter s 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 Forc e, but congressional aides and defense experts did not expe ct the deal to run into last-minute problems on Capitol Hill . Despite the Bush administration's approval of the lease, defens e 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 bein g held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reute rs 05:19 PM ET 05/27/2003) More : 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 wrot e: The White House budget office said that scant headway had been mad e as far as it was concerned toward a proposed multi billion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Manag ement and Budget) doesn't see a lot of progress since last week, " said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolfo witz discussed a revised proposal Tuesday night with both the Pentagon's chief weapons buyer, Edward Aldridge, and Air For ce secretary James Roche. Wolfowitz is "taking the proposed tanke r lease under advisement," Cheryl Irwin, a Pentagon spoke swoman, said. She said she did not know how long a decis ion might take. The deal has been under discussion since ear ly last year. (Reut ers 06:53 PM ET 05/21/2003) Mor e: 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 aft er the company further lowered its price, sources familiar wit h the agreement said. After nonstop negotiations, Boeing had agree d to lower the price for each of the modified 767-200ER plane s below the figure of $136 million reported last week. The pri ce of the overall lease deal -- which critics have blasted as corpo rate welfare for a company hard hit by a slump in comme rcial sales -- was now below $17 billion, including the ter ms 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 purch ase at the end. (Reut ers 05:35 PM ET 05/20/2003) Mor e: 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 : BOEI NG CO. has agreed to reduce by 6% the price of a multibillion de al to lease 100 767 aircraft to the Air Force as refueling tank ers, 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 be en in the works for over 18 months -- could come soon. But th ey said defense officials were at pains to review the agre ement very carefully, since it marked the first time the U. S. military would lease -- rather than buy -- such a large numb er of aircraft. The lease had been expected to cost $17 bill ion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (Reu ters 02:01 PM ET 05/12/2003) More : 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 wrot e: T he Defense Department still has issues to resolve before end orsing a multibillion dollar U.S. Air Force proposal to lea se 100 BOEING CO. 767s as refueling tankers, the prime con gressional mover behind the plan said Wednesday. "I'm tal king to all parties, trying to move this thing forward -- a nd we're still not quite there yet," said Rep. Norm Dicks, the Was hington Democrat who spearheaded the law authorizing the unu sual leasing arrangement. The Air Force and Boeing have been wor king on the proposed lease for more than a year. Their ten tative deal involved a $17 billion lease over 6 years, with a n option to purchase the aircraft for another $4 billion at t he end of the lease. By some accounts, the Defense Department h ad been expected to sign off any day now following a fresh rou nd of meetings on Friday and over the weekend that rep ortedly lowered the cost to the Air Force. (Re uters 05:39 PM ET 05/07/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- O n Wed, 07 May 2003 17:40:54 GMT, Larry Dighera wro te: Pe ntagon lawyers are taking a final look at a proposed mu ltibillion Air Force lease of 100 BOEING CO. 767 jets as re fueling tankers and the deal could be approved later Tuesday, de fense officials said. But sources familiar with the ne gotiations warned the deal -- which critics blast as a co rporate handout to Boeing -- has been in the works for more th an 18 months and last-minute issues have delayed its approval mo re than once. Negotiators from Chicago-based Boeing, the Air Fo rce and the Office of the Secretary of Defense succeeded over th e weekend in narrowing the differences between the cost of the de al as estimated by the Air Force and the independent Institute fo r Defense Analyses, the officials said. Under the terms of the or iginal deal, the Air Force would spend $17 billion to lease th e 100 planes for 6 years, paying an additional $4 billion to bu y them at the end of the term. (R euters 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 wr ote: B OEING 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 p roposed $17 billion lease. John Sams, the Boeing official who n egotiated the deal with the air force, said each aircraft was p rojected to spin off $4.8 million a year during the projected 6-year lease, assuming 750 hours of flying time. This figure w ould include all spare parts, training and simulators, the c ompany said, and total $28.8 million per tanker over the 6 y ears. If the leases were extended, Boeing's take would rise c orrespondingly. Under a tentative deal awaiting U.S. Defense D epartment's approval, the air force would have an option to b uy the modified 767s at the end of the lease for a combined $4 b illion. ( Reuters 11:46 PM ET 05/01/2003) M o http://q1.schwab.com/s/r?l=248&a=810...a&s=rb0305 01 = ================================================== ============= O n Wed, 23 Apr 2003 00:39:24 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ============================================ ==================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : GENERAL DYNAMICS CORP. said the U.S. Navy had given it and BOEING CO. 30 days to pay $2.3 billion to settle an 11-year legal battle over the Pentagon's abrupt cancellation of the Navy's A-12 fighter jet. "General Dynamics regards this demand as an unseemly negotiating tactic, and an apparent effort to gain advantage during settlement talks," the company said, noting that it would seek an injunction in federal court if the settlement talks failed to reach a result before the 30-day deadline. General Dynamics, Boeing and the Navy were in intense discussions this summer to settle the matter, with one proposal calling for the companies to provide goods and services to the Navy valued at more than $2.5 billion, including discounts on F-18E/F fighter jets it plans to buy in the future. (Reuters 03:19 PM ET 09/03/2002) Mo http://q1.schwab.com/s/r?l=248&a=699...a&s=rb0209 03 ========================================= ======================= On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera (Larry Dighera) wrote in Message ID fj05lu8e0tt7sihbptme3g7ai8s0q16n7u@new s-server.socal.rr.com: 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 hia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfvt @news-server.socal.rr.com... BOEING CO. CFO Mike Sears said the aerospace company expects to sign a deal to lease air refueling tankers to the U.S. Air Force by the end of summer. Congress authorized the Air Force in December to negotiate a leasing deal with Boeing for 100 converted 767s to replace some aging KC-135 tankers. White House and congressional budget experts had said it would be cheaper to buy new planes or refurbish the old tankers than sign a 10-year lease with an estimated cost of $26 billion to $37 billion. (Reuters 10:44 AM ET 07/17/2002) Mo http://q1.schwab.com/s/r?l=248&a=674...a&s=rb0207 17 On Fri, 17 May 2002 03:34:14 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (45.00 +0.45) Replacing the oldest U.S. refueling aircraft remains an Air Force priority, the service's secretary and chief of staff told Congress Wednesday amid controversy over a proposed lease of commercial aircraft from BOEING CO. The Air Force said concern about the 43-year-old KC-135Es in its fleet had been heightened by the increased pace of aerial refueling after the Sept. 11 attacks. Air Force Secretary James Roche rejected suggestions that the Air Force could get by with its current refueling fleet for 15 years or more. Replacement needs to start as soon as possible, the Air Force said in a separate letter replying to criticism of the proposed lease deal. (Reuters 04:34 PM ET 05/15/2002) Mo http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15 ---------------------------------------------------------------- On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : ---------------------------------------------------------------- Boeing Co (BA) (44.28 +0.65) The Senate Armed Services Committee moved on Friday to boost congressional oversight of a possible $26 billion Air Force deal to lease BOEING CO. wide-body jets and turn them into refueling tankers. Sen. John McCain said he was clearing the way for public hearings on what he has described as a potential taxpayer "rip-off." A measure adopted by the panel would force the secretary of the Air Force to get specific funding for any lease of Boeing 767 tankers -- a process that could delay any deal to the next budget cycle if enacted into law. (Reuters 05:15 PM ET 05/10/2002) Mo http://q1.schwab.com/s/r?l=248&a=641...1a&s=rb0205 1 0 On Thu, 09 May 2002 15:59:30 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : Boeing Co (BA) (44.41 +1.27) Plans for the U.S. Air Force to lease BOEING CO. 767 commercial aircraft as aerial refueling tankers is an expensive solution that could actually cut overall fuel capacity, according to a White House analysis obtained on Tuesday. Office of Management and Budget Director Mitch Daniels said leasing the 100 767s to start replacing a 40-year-old fleet of KC-135 tankers would cost up to $26 billion and result in a slightly smaller overall fuel capacity. A $3.2 billion upgrade of 126 KC-135s would increase fleet capacity by a similar amount but the Air Force had not chosen this route, Daniels said in a letter to leasing critic, Arizona Republican Sen. John McCain. (Reuters 07:52 PM ET 05/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=639...0925a&s=rb0205 07 On 18 Apr 2002 22:00:27 -0700, (Blain Shinno) (Blain Shinno) wrote in Message ID m: Boeing expects to begin delivering aerial refueling tankers based on its 767 wide-body jetliner, including some for Italian and Japanese forces, by late 2004, with some 100 tankers for the U.S. Air Force rolling off the line beginning in 2005. I wonder how many tankers will be delivered each year. Seems a little long to wait for leased tankers. I wonder when all of them will be delivered? For $26 billion the USAF better have the option of buying the tankers for $1 at the end of the lease. And how does the lease impact the future buy of tankers? When will 767 derivatives start rolling off the line? Following the delivery of leased tankers, or after? How is that going to impact the budget?
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Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ============================================== ================== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 =========================================== ===================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ========================================== ====================== On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ========================================= ======================= U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ======================================== ======================== On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ======================================= ========================= On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ====================================== ========================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 =================================== ============================= BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 ================================ ================================ Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ============================= =================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 ============================ ==================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 ============================ ==================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 =========================== ===================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ========================= ======================================= On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ======================= ========================================= On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ====================== ========================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ====================== ========================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ===================== =========================================== On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ================== ============================================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 ================ ================================================ On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 =============== ================================================= On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee, said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporatio n. 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 capabilitie s 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 attractin g 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 Tuesda y. 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 hearin g was the first of several expected on the controversial propos ed $16 billion lease agreement aimed at starting to replac e the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reute rs 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 BOEIN G CO. a "rip-off," sent a letter to Boeing Chief Executive Phili p Condit requesting documents related to the deal, The Wall Stree t Journal reported. McCain, the chair of the U.S. Senate's Commerc e Committee, is seeking all communication between Boeing and government officials related to the lease, as well as documen ts from Boeing's interactions with commercial and forei gn 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 respons e. 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 refueli ng aircraft. (Reuter s 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: : Seve n independent groups blasted a $16 billion BOEING CO. lease deal with the Air Force as "a profligate waste of taxpayer dollar s" and said lawmakers should delay its approval until a crimin al investigation into another Boeing contract is comple ted. 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 LOCKHE ED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chairm an and Chief Executive Phil Condit said the company had take n appropriate action after it learned of the errors and woul d not tolerate unethical behavior. The Project on Govern ment Oversight, which also signed the letter, rejected Condit 's statement and said it had documented 36 cases of miscon duct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, restit ution and settlement fees. (Reute rs 01:00 AM ET 06/10/2003) More : 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 wrot e: U.S . senators will hold a hearing in early June on a $16 billion pla n for BOEING CO. to lease 100 modified 767 jets to the Air Force , but congressional aides and defense experts did not expec t the deal to run into last-minute problems on Capitol Hil l. Despite the Bush administration's approval of the lease, defen se 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, hea d of the Virginia-based Lexington Institute. "I don't see it bei ng held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reut ers 05:19 PM ET 05/27/2003) Mor e: 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 : Th e White House budget office said that scant headway had been ma de as far as it was concerned toward a proposed mult ibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Mana gement and Budget) doesn't see a lot of progress since last week ," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wolf owitz discussed a revised proposal Tuesday night with both th e Pentagon's chief weapons buyer, Edward Aldridge, and Air Forc e secretary James Roche. Wolfowitz is "taking the proposed tank er lease under advisement," Cheryl Irwin, a Pentagon spok eswoman, said. She said she did not know how long a deci sion might take. The deal has been under discussion since earl y last year. (Reu ters 06:53 PM ET 05/21/2003) More : http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- To p Pentagon officials late on Tuesday began reviewing the Air Forc e's plans to lease 100 BOEING CO. 767s as refueling tankers afte r the company further lowered its price, sources familiar wi th the agreement said. After nonstop negotiations, Boeing had agre ed to lower the price for each of the modified 767-200ER plan es below the figure of $136 million reported last week. The pric e of the overall lease deal -- which critics have blasted as corp orate welfare for a company hard hit by a slump in comm ercial sales -- was now below $17 billion, including the term s 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 Ai r Force to pay $17 billion for the lease, and $4 billion for purc hase at the end. (Reu ters 05:35 PM ET 05/20/2003) More : 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 wrot e: BOE ING CO. has agreed to reduce by 6% the price of a multibillion dea l to lease 100 767 aircraft to the Air Force as refueling tan kers, defense officials said. The officials, who asked not t o be named, said Boeing officials had agreed to trim the price o f each 767-ER200 aircraft by $9 million to about $141 million eac h. The officials said a decision on the deal -- which has bee n in the works for over 18 months -- could come soon. But the y said defense officials were at pains to review the agr eement very carefully, since it marked the first time the U.S . military would lease -- rather than buy -- such a large num ber of aircraft. The lease had been expected to cost $17 bil lion over 6 years, with the Air Force to pay an additional $ 4 billion to buy the planes at the end of the term. (Re uters 02:01 PM ET 05/12/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=814...a&s=rb0305 12 ---------------------------------------------------------------- O n Fri, 09 May 2003 01:13:04 GMT, Larry Dighera wro te: Th e Defense Department still has issues to resolve before en dorsing a multibillion dollar U.S. Air Force proposal to le ase 100 BOEING CO. 767s as refueling tankers, the prime co ngressional mover behind the plan said Wednesday. "I'm ta lking to all parties, trying to move this thing forward -- an d we're still not quite there yet," said Rep. Norm Dicks, the Wa shington Democrat who spearheaded the law authorizing the un usual leasing arrangement. The Air Force and Boeing have been wo rking on the proposed lease for more than a year. Their te ntative deal involved a $17 billion lease over 6 years, with an option to purchase the aircraft for another $4 billion at th e end of the lease. By some accounts, the Defense Department ha d been expected to sign off any day now following a fresh ro und of meetings on Friday and over the weekend that re portedly lowered the cost to the Air Force. (R euters 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 wr ote: P entagon lawyers are taking a final look at a proposed m ultibillion Air Force lease of 100 BOEING CO. 767 jets as r efueling tankers and the deal could be approved later Tuesday, d efense officials said. But sources familiar with the n egotiations warned the deal -- which critics blast as a c orporate handout to Boeing -- has been in the works for more t han 18 months and last-minute issues have delayed its approval m ore than once. Negotiators from Chicago-based Boeing, the Air F orce and the Office of the Secretary of Defense succeeded over t he weekend in narrowing the differences between the cost of the d eal as estimated by the Air Force and the independent Institute f or Defense Analyses, the officials said. Under the terms of the o riginal deal, the Air Force would spend $17 billion to lease t he 100 planes for 6 years, paying an additional $4 billion to b uy them at the end of the term. ( Reuters 12:04 PM ET 05/06/2003) M o http://q1.schwab.com/s/r?l=248&a=811...a&s=rb0305 06 = ================================================== ============= O n Sat, 03 May 2003 04:38:27 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 =========================================== ===================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO., still negotiating with the U.S. government, hopes to close a key deal to lease modified 767 jetliners as refueling tankers to the U.S. Air Force by year-end, a spokesman said. The price under discussion is now $17 billion for 100 refueling tankers, down from the originally estimated $26 billion that failed to win approval in Washington, The Wall Street Journal reported. Boeing, the second largest U.S. military contractor, had hoped to close the deal long ago but has been thwarted by concerns over price and the value of buying versus leasing. At one point, rival airplane manufacturer Airbus of Europe was also trying to win the deal. (Reuters 11:42 AM ET 11/05/2002) Mo http://q1.schwab.com/s/r?l=248&a=732...a&s=rb0211 05 On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera (Larry Dighera) wrote in Message ID d5panukhiq14qdrpfaelragtu8ehs5fem6@new s-server.socal.rr.com: 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 fj05lu8e0tt7sihbptme3g7ai8s0q16n7u@ne ws-server.socal.rr.com: 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 phia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvfv ... 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?
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Pentagon inspector general Joseph Schmitz said he had found no "compelling reason" to kill a stalled, $23 billion Air Force plan to lease and buy modified BOEING CO. refueling planes. But Schmitz, outlining the findings of a high-stakes audit, told the staff of the Senate Armed Services Committee and others that the program should not move forward until the Air Force has fixed what his aides described as serious flaws in their procurement procedures. (Reuters 04:36 PM ET 03/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=941...a&s=rb0403 29 ================================================== ============== On Thu, 18 Mar 2004 01:04:37 GMT, Larry Dighera wrote in Message-Id: : Europe's Airbus should get another shot at supplying billions of dollars of aerial refueling tankers to the U.S. Air Force if the Pentagon kills a stalled plan to go with BOEING CO., Air Force Secretary James Roche said. If sent back to square one, "there would be no alternative (to reopening the competition) because we're talking about a brand new plane," he told reporters at a breakfast forum. Forcing Boeing to compete in this case would "make sense," Roche said. "I would be delighted to do it." European Aeronautic Defense and Space Co. NV, which owns 80% of Airbus, Boeing's chief commercial aircraft rival, said in a statement it was prepared to compete for all future U.S. tanker business. "This clearly applies to the circumstances Secretary Roche describes," said Ralph Crosby, chairman and chief executive of EADS' North American arm. (Reuters 03:00 PM ET 03/17/2004) Mo http://q1.schwab.com/s/r?l=248&a=937...a&s=rb0403 17 ---------------------------------------------------------------- On Wed, 17 Mar 2004 14:08:51 GMT, Larry Dighera wrote in Message-Id: : Defense officials and analysts cautioned against naive optimism about the prospects for a U.S. Air Force deal to lease and buy 100 767 tankers from BOEING CO., saying the controversy about the $27.6 billion deal was far from over. Pentagon Inspector General Joseph Schmitz concluded in a March 5 draft report that there was "no compelling reason" to scrap the deal, which critics say was aimed at helping the Chicago-based company weather a huge drop in aircraft sales. But the report raised many questions about the deal and said some of its terms needed be renegotiated due to unsound acquisition practices, said sources familiar with the report. (Reuters 04:30 PM ET 03/16/2004) Mo http://q1.schwab.com/s/r?l=248&a=936...a&s=rb0403 16 ----------------------------------------------------------------On Wed, 10 Mar 2004 14:10:36 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said an independent ethics review found that the No. 2 Pentagon contractor's improper hiring of a former U.S. Air Force procurement official was an isolated incident. The report, following a 3-month review led by former U.S. Sen. Warren Rudman, found room for improvement at Boeing, unrelated to the controversial hiring of Darleen Druyun, who was fired in November along with Chief Financial Officer Mike Sears. Boeing says Sears and Druyun discussed job opportunities at Boeing before Druyun stopped working on Boeing-related Air Force programs, providing grounds for firing them both. The Rudman report said Boeing's job application process did not ask if a candidate had been involved in Boeing-related activities or had filed a disqualification statement covering Boeing, nor did they ask for a copy of any such statements. (Reuters 01:17 PM ET 03/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=933...a&s=rb0403 09 ----------------------------------------------------------------On Fri, 27 Feb 2004 00:29:02 GMT, Larry Dighera wrote in Message-Id: : Top U.S. Air Force officials reiterated the need to begin replacing 133 of its oldest KC-135 midair refueling tankers, despite a delay in its deal with BOEING CO. to lease and buy 100 767 tankers. The deal, with a total price tag of $27.6 billion, is on hold pending a criminal investigation and studies on the urgency of the need to replace the 40-year-old KC-135 fleet. Air Force Secretary James Roche said the Air Force had hoped to use the proposed lease -- which drew hefty criticism in Congress -- to accelerate the replacement, but said he agreed with a halt in the program, pending the investigations. Given the situation, the Air Force had reverted to its original plan to slowly begin buying replacement tankers, earmarking $150 million toward that in the fiscal 2006 budget plan, Roche told the House Armed Services Committee. (Reuters 01:50 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- The Pentagon poured cold water on a report of a new delay for BOEING CO.'s proposed multibillion-dollar air refueling tanker deal. The Defense Department remains on track to make a decision about the proposed acquisition of Boeing 767 aircraft as tankers after the scheduled May 1 completion of four reviews, said a spokeswoman, Cheryl Irwin. She said a Lehman Brothers analyst, Joe Campbell, apparently had misinterpreted the significance of an analysis of alternatives that she said would take 18 months. Campbell, in a research note, said the 18-month study could cause Boeing to shut down the slow-selling 767 line. But the Pentagon said the analyst had misinterpreted a memo discussing the analysis of alternatives mandated by law late last year. "The authorization act directed the Air Force to conduct an analysis of alternatives," or AOA, Irwin said. "With DoD (the Defense Department), the suspension of negotiations with Boeing on the tanker lease deal is not connected to the AOA," she said. "We are talking two separate issues." A Boeing spokeswoman was not immediately available for comment. (Reuters 03:40 PM ET 02/26/2004) Mo http://q1.schwab.com/s/r?l=248&a=929...a&s=rb0402 26 ---------------------------------------------------------------- On Sun, 22 Feb 2004 10:07:52 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. said it would slow development work on a potentially huge U.S. air refueling tanker deal as a result of government reviews of the program. Boeing will fire about 100 contract employees in Wichita, Kan., and could fire up to 50 workers in Washington state and reassign about 600 others, the company said in a statement. The U.S. Air Force tanker order, originally designed as a lease worth nearly $30 billion, has been repeatedly delayed, first over concerns on the price and later over ethical concerns related to Boeing's hiring of a former Air Force procurement official. (Reuters 02:30 PM ET 02/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=926...a&s=rb0402 20 ============================================= =================== On Sat, 14 Feb 2004 11:58:35 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain demanded that Air Force Secretary James Roche explain why officials altered data on the threat of corrosion to refueling planes -- a key argument in the drive to lease and buy 100 tanker replacements from BOEING CO. The Arizona Republican, who spearheaded a congressional investigation of the tanker deal, asked Roche to fully explain the matter by Feb. 27, ahead of his scheduled appearance at March 2 hearing of the Senate Armed Services Committee. "Please provide a full explanation of why, in response to a specific request for exact copies of slides originally presented at Tinker AFB, did your office produce documents with data favorable to the lease proposal inserted and unfavorable data deleted," McCain wrote in the letter to Roche. No comment was immediately available from the Air Force on the McCain letter. (Reuters 02:21 PM ET 02/13/2004) Mo http://q1.schwab.com/s/r?l=248&a=924...a&s=rb0402 13 ---------------------------------------------------------------- On Thu, 12 Feb 2004 14:43:12 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said he had told Harry Stonecipher, the new BOEING CO. chief executive, he did not regard the company as being in a "penalty box" over its stalled $20 billion-plus tanker proposal to the U.S. Air Force. "I assured him all I asked for was the orderly process which now pretty much is in place," McCain said in an interview after a 20-minute meeting in his Senate office with Stonecipher. (Reuters 05:13 PM ET 02/11/2004) Mo http://q1.schwab.com/s/r?l=248&a=923...a&s=rb0402 11 On Wed, 11 Feb 2004 01:47:19 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general will brief top officials this week on his criminal investigation of a $27.6 billion plan to lease and buy BOEING CO. tankers, but the probe is far from over and the deal remains on hold, defense officials said on Monday. The Pentagon's in-house watchdog agency, working closely with the Justice Department, will report back to Deputy Defense Secretary Paul Wolfowitz, who put the Air Force plan on hold last December after Boeing fired two top executives for ethical violations. One official, who asked not to be named, said the report did not signal the end of the broader investigation: "This is not the end of the investigation. This is ongoing." Defense officials say the proposed Air Force deal with Boeing has been delayed until at least May, and may be revamped entirely, after several separate assessments are completed. (Reuters 07:34 PM ET 02/09/2004) Mo http://q1.schwab.com/s/r?l=248&a=921...a&s=rb0402 09 ========================================== ====================== On Thu, 05 Feb 2004 01:10:36 GMT, Larry Dighera wrote in Message-Id: : Critics of a U.S. Air Force multibillion-dollar deal to lease and buy BOEING CO. refueling tankers, were hopeful on Tuesday after scrutinizing a Pentagon budget that did not earmark funds for a plan they had blasted as a giveaway to the aerospace company. The lack of funding in the defense budget was "another sign that the tanker deal has finally been put to bed," said Eric Miller, defense analyst at the Project on Government Oversight, which opposed the lease deal from the start. The deal was put on hold in December after Boeing fired two top executives for ethical violations, prompting an expansion of a criminal investigation that was already underway. Air Force spokeswoman Cheryl Law said there were only "negligible" amounts of funding for the tanker deal in the fiscal 2005 budget request, and no funds to actually lease aircraft. She said funds could still be reallocated if Congress and the Pentagon cleared the deal. (Reuters 08:08 PM ET 02/03/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 03 ---------------------------------------------------------------- Defense Secretary Donald Rumsfeld said that U.S. Air Force efforts to acquire BOEING CO. 767 aircraft as refueling tankers appeared to have been tainted by "wrongdoing." Announcing a new study into the condition of the current tanker fleet, he in effect delayed until May at the earliest the possible acquisition of the Boeing 767s, a deal potentially worth more than $20 billion. "I can assure you that, if there has been wrongdoing, as there appears to have been, we will take appropriate action," Rumsfeld told the Senate Armed Services Committee. The Defense Science Board, a Pentagon advisory panel, will study the Air Force's push to phase out its Eisenhower-era KC-135 tankers rather than put new engines in them or "recapitalize" in another way, Pentagon officials said. (Reuters 03:29 PM ET 02/04/2004) Mo http://q1.schwab.com/s/r?l=248&a=919...a&s=rb0402 04 ========================================= ======================= On Fri, 30 Jan 2004 12:02:33 GMT, Larry Dighera wrote in Message-Id: : BOEING CO., beset by an ethics scandal that triggered an extensive government review of its huge military business, is working hard to convince U.S. officials it is not made up of "a bunch of crooks," its top official said. Chief Executive Harry Stonecipher, who took over for scandal-plagued Phil Condit last month, has been roaming the halls of the Pentagon and on Capitol Hill to buff up Boeing's tarnished image. Stonecipher has met with Boeing's toughest critic, Arizona Republican Sen. John McCain, and plans to meet him again soon to discuss an $18 billion air refueling tanker deal stalled over price concerns and a conflict of interest scandal involving a former Air Force official. (Reuters 01:07 PM ET 01/29/2004) Mo http://q1.schwab.com/s/r?l=248&a=916...a&s=rb0401 29 ======================================== ======================== U.S. senators, disgruntled by the Pentagon's continuing refusal to hand over documents on a plan to lease BOEING CO. 767s, are discussing ways to get the documents, including a possible subpoena, Senate aides said. One option might be to link the nominations of two key Pentagon officials to disclosure of the documents, or the Senate Armed Services Committee could subpoena the documents, the aides said. On Nov. 12, the Senate approved an Air Force lease of 20 767s as midair tankers and the purchase of up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through 2017 -- $5 billion less than a lease of all 100 tankers. But the Pentagon has put the deal on hold, pending a probe by its inspector general into possible improprieties. (Reuters 07:16 PM ET 01/27/2004) Mo http://q1.schwab.com/s/r?l=248&a=915...a&s=rb0401 27 ---------------------------------------------------------------- On Fri, 30 Jan 2004 11:42:44 GMT, Larry Dighera wrote in Message-Id: : Britain is set to award a 13 billion pound ($24 billion) military plane contract to a consortium led by Airbus parent EADS in a blow to rival BOEING CO., an industry source said. Europe's largest order for planes that refuel military jets would be a big win for Airbus -- which would supply civilian planes to be converted into air tankers -- and crack open a sector where Boeing has long held a near-monopoly. Some analysts have said bidding is too close to call. Both sides have offered about 20 planes. The EADS bid includes Britain's ROLLS-ROYCE and France's THALES. Boeing is grouped with services firm Serco and the UK's biggest defence firm, BAE. EADS declined comment until the Ministry of Defence announces its decision. "We simply haven't been told officially or unofficially," said Serco's head of media Kevin Johnson. (Reuters 06:44 AM ET 01/23/2004) Mo http://q1.schwab.com/s/r?l=248&a=913...a&s=rb0401 23 ======================================= ========================= On Thu, 22 Jan 2004 09:14:06 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld has ordered the Pentagon's in-house watchdog to expand its investigation into the BOEING CO. tanker deal to see if a former Air Force acquisition official's job search affected other contracts, officials said on Tuesday. Rumsfeld also asked Pentagon General Counsel Jim Haynes, the chief ethics officer, to review rules aimed at preventing abuses when top officials seek jobs in the defense industry after they leave the government, a Pentagon spokeswoman said. Pentagon Inspector General Joseph Schmitz first launched a criminal investigation in September into a multibillion-dollar Air Force plan to lease 100 Boeing 767s as refueling tankers. The probe initially focused on whether former Air Force acquisitions official Darleen Druyun improperly gave Boeing, her future employer, access to a rival's proprietary data. (Reuters 05:49 PM ET 01/20/2004) Mo http://q1.schwab.com/s/r?l=248&a=911...a&s=rb0401 20 ====================================== ========================== On Fri, 19 Dec 2003 21:32:45 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's top financial officer said he saw no point in budgeting for BOEING CO. tanker aircraft while plans for the multibillion acquisition remained under in-house investigation for possible contracting abuses. In another potential blow to Boeing's hopes to revive the deal quickly and breathe new life into its 767 aircraft production line, Dov Zakheim, the Defense Department's comptroller, declined to suggest it should be treated separately from a review of other Boeing-related contracts now being called into question. The Pentagon put tanker negotiations on hold on Dec. 1 for an audit of whether they had been tainted by improper contacts between Boeing and Darleen Druyun, who served as the Air Force's lead negotiator on the deal before joining the company in January. (Reuters 01:00 PM ET 12/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=902...a&s=rb0312 17 ===================================== =========================== On Sat, 13 Dec 2003 08:17:29 GMT, Larry Dighera wrote in Message-Id: : U.S. prosecutors have started a new criminal investigation involving aircraft maker BOEING CO., The Wall Street Journal reported. The probe focuses on dealings between Boeing's former CFO, Michael Sears, and Darleen Druyun, an ex-Boeing executive who served as a high-ranking Pentagon official before joining the company, the paper said, citing industry and government officials. Boeing officials could not be reached for comment early on Friday. The investigation is led by the U.S. Attorney's office in Northern Virginia with help from the Defense Department's Criminal Investigative Service, the report said. It focuses on contacts starting early in the fall of 2002 about a possible job for Druyun at Boeing -- at a time when she still worked for the government. That was nearly 2 months before she recused herself from all decisions regarding the company, the report said, citing the officials. (Reuters 03:10 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- BOEING CO. said it was cooperating with investigators amid reports of a new federal criminal probe that could complicate relations with its biggest client, the U.S. government. "The company has been cooperating and will continue to cooperate with investigators," said Kenneth Mercer, a spokesman at Boeing headquarters in Chicago. He declined to elaborate. Earlier in the day, The Wall Street Journal cited industry and government officials as saying prosecutors were focusing on Boeing's fired chief financial officer, Michael Sears, and Darleen Druyun, who served as the Air Force's No. 2 acquisition official before joining the company in January. (Reuters 11:41 AM ET 12/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=900...a&s=rb0312 12 ---------------------------------------------------------------- Air Force Secretary James Roche has asked the Pentagon's inspector general to expand an investigation of an $18 billion deal for 100 BOEING CO. 767 tankers to include other major contracts, the Air Force said on Tuesday. Defense analysts, congressional aides and industry sources said the move marked increasing concern about awards won by the nation's second largest defense contractor in the wake of an ethics scandal that has already spawned a criminal investigation and a major management shakeup. But they said the scandal would have consequences for all U.S. defense firms, including tighter scrutiny of contracts and a major congressional review of rules governing the so-called "revolving door" between industry and military officials. (Reuters 05:52 PM ET 12/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=899...a&s=rb0312 09 ---------------------------------------------------------------- Pentagon adviser Richard Perle came under fire on Friday for failing to disclose financial ties to BOEING CO., even while championing its bid for a controversial $20 billion-plus defense contract. Perle co-wrote a guest column in The Wall Street Journal newspaper this summer praising the plan to lease then buy 100 modified refueling planes, a year after Boeing committed to invest up to $20 million in Trireme Partners, a New York venture capital fund in which Perle is a principal. Perle's role adds to the ethical questions dogging the tanker deal, placed on hold by the Pentagon this week for an audit of suspected contracting improprieties that contributed to the resignation on Monday of Boeing's chief executive. (Reuters 05:38 PM ET 12/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 05 ------------------------------------------------------------ The Air Force's top acquisitions official urged the quick signing of a $20 billion contract with BOEING CO. even after Defense Secretary Donald Rumsfeld expressed concern about improprieties, the New York Times reported on Saturday. Citing internal email messages, the Times report said that Dr. Marvin Sambur, the acquisitions official, several months earlier had also forwarded to top Boeing executives copies of internal Pentagon communications outlining the negotiating strategy for the contract to lease and then buy 100 modified refueling planes. Those messages were sent in April and May, the Times said, before Boeing and the Pentagon had reached an agreement on the controversial tanker-leasing deal. (Reuters 01:47 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- BOEING said on Saturday it was confident a controversial $20 billion-plus defense contract with the U.S. Air Force would go ahead despite a pause in negotiations ordered by the Pentagon. "We're confident that there's going to be a U.S. Air Force 767 program," Mark Kronenberg, VP, International Business Development for the Middle East, Africa and the Americas, told Reuters. "Obviously right now it's under review. OSD (Office of Secretary of Defense) is looking at it. Air Force is looking at it and we're cooperating with both fully," Kronenberg said. The New York Times reported on Saturday that the U.S. Air Force's top acquisitions official urged the quick signing of the contract with Boeing even after Defense Secretary Donald Rumsfeld expressed concern about improprieties. (Reuters 07:34 AM ET 12/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=898...a&s=rb0312 06 ---------------------------------------------------------------- On Wed, 03 Dec 2003 10:26:58 GMT, Larry Dighera wrote in Message-Id: : The Pentagon has told Congress it will postpone any action on $18 billion contracts for 100 BOEING CO. 767 tankers until the deal is investigated following Boeing's firing of two officials for ethical violations, Defense Department officials said on Tuesday. Deputy Defense Secretary Paul Wolfowitz told leaders of the Senate Armed Service Committee in a letter dated Dec. 1 that he was ordering a "pause in the execution" of the Air Force contracts to lease and buy the mid-air refueling tankers. Wolfowitz said his decision was prompted by Boeing's firing last week of Chief Financial Officer Michael Sears for discussing a possible job with former Air Force official Darleen Druyun -- the lead player on the lease deal -- before she recused herself from overseeing Boeing business. (Reuters 12:37 PM ET 12/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=896...a&s=rb0312 02 ---------------------------------------------------------------- On Tue, 02 Dec 2003 19:23:19 GMT, Larry Dighera wrote in Message-Id: : Michael Sears, fired from his position as BOEING CO.'s CFO earlier this week, said he did not believe his conduct in hiring a former Air Force official violated company policy. "At no time did I engage in conduct which I believed to be in violation of any company policy," Sears said in a statement issued through his lawyers at the firm Cotsirilos, Tighe & Streicker. "At all times, I have faithfully carried out my duties on behalf of Boeing to the best of my ability. I am deeply disappointed by the action the company took (Monday)." Boeing fired Sears for talking with Darleen Druyun about future employment while she was still acting in her government role as a procurement officer for the Air Force. Druyun, on her job at Boeing as a missile defense official in Washington, D.C., for less than a year, was also dismissed. (Reuters 10:01 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ================================== ============================== BOEING CO. Chairman and Chief Executive Phil Condit resigned under pressure, following an ethics scandal and other corporate missteps that have hurt business prospects. Harry Stonecipher, who retired last year, was named president and CEO of the world's largest aerospace company. Considered by many a shrewd and hard-nosed leader, Stonecipher was formerly Boeing's vice chairman after running McDonnell Douglas, with which Boeing merged in 1997. "Boeing is advancing on several of the most important programs in its history and I offered my resignation as a way to put the distractions and controversies of the past year behind us, and to place the focus on our performance," Condit said in a statement. "They needed to send the very strongest signal they could to Congress, DoD (U.S. Department of Defense), investors," said Richard Aboulafia at Teal Group. "This is an (extension) of recent issues that have plagued Boeing," said Marcy Yeamans, analyst for Banc One Investment Advisors. "Given the issues at the company, it shouldn't have been a total surprise." (Reuters 11:27 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 ---------------------------------------------------------------- Boeing Co (BA) (38.02 -0.37) BOEING CO.'s new chief executive, Harry Stonecipher, said corporate turmoil and ethics problems would not upset multibillion-dollar deals for U.S. Air Force refueling tankers and Future Combat Systems, a high-tech warfare program. "I don't think either one of them will be scrapped. That's my personal opinion," Stonecipher told reporters on a teleconference. "The need for tankers is still there. It's a critical need." (Reuters 11:31 AM ET 12/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=895...a&s=rb0312 01 EADS said it had no plans to pursue legal proceedings against rival BOEING in light of claims the U.S. firm gained access to details of its tender for a U.S. air tanker contract. "We are not contemplating any legal action," an EADS spokesman in Munich said in response to queries. Earlier, Britain's Times newspaper quoted an unnamed EADS official in the United States as saying the company was looking into its legal options in the tanker case. The case centers around a $22.4 billion proposal by the U.S. Air Force to lease and then buy Boeing 767 aircraft as refueling tankers. The Pentagon's in-house watchdog launched an inquiry into the Boeing tanker deal months ago, examining whether former Air Force procurement official Darleen Druyun improperly shared with Boeing details of a rival bid by EADS, the parent of commercial jet maker Airbus. (Reuters 07:40 AM ET 11/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 26 ------------------------------------------------------------------------- U.S. Defense Secretary Donald Rumsfeld said he had directed the Pentagon's senior staff to consider whether to delay signing a contract with BOEING CO. to lease Boeing 767 refueling tankers following the aerospace company's firing of two officials. "We're the custodians of the taxpayers' dollars. We have an obligation to see that things are done properly," Rumsfeld told a Pentagon briefing. President George W. Bush signed into law on Monday a $401.3 billion defense spending bill that paved the way for the Air Force to lease 20 tankers initially and purchase 80 more in the future, but details remain to be resolved. Rumsfeld was asked during the briefing whether the signing of the tanker lease contract should be delayed until the Pentagon reviews whether the acquisition process was tainted by Boeing. (Reuters 04:31 PM ET 11/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=894...a&s=rb0311 25 On Tue, 25 Nov 2003 21:14:08 GMT, Larry Dighera wrote in Message-Id: : BOEING CO.'s firing of two officials for unethical conduct is the latest twist in a 2-year saga that has already substantially changed a multibillion-dollar Pentagon plan to lease Boeing 767 refueling tankers and could stall the deal further. President George W. Bush on Monday signed into law a $401.3 billion defense spending bill that clears the way for the Air Force to lease 20 tankers and buy 80 more in the future, but it is still working out the details with Boeing. The Air Force on Monday said it deplored ethical violations and was considering requesting a separate investigation by the Pentagon's inspector general, who launched a formal probe into improprieties in the tanker deal months ago. (Reuters 04:21 PM ET 11/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 24 ---------------------------------------------------------------- On Sat, 22 Nov 2003 17:48:24 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain moved on Thursday to force disclosure of Pentagon records on a multibillion-dollar plan to acquire 100 BOEING CO. 767s as refueling planes. In a letter to committee chairman John Warner, McCain linked his quest to the fate of Michael Wynne, President Bush's choice to be the Pentagon's new chief weapons buyer. "I respectfully suggest that the Defense Department" produce records sought for oversight of the Boeing deal "as the committee prepares to consider Mr. Wynne's nomination," McCain wrote. At a confirmation hearing for Wynne on Tuesday, Warner, a Virginia Republican; Carl Levin of Michigan, the panel's top Democrat; and McCain, an Arizona Republican, voiced concern over Deputy Defense Secretary Paul Wolfowitz's refusal to hand over documents at issue. (Reuters 08:26 PM ET 11/20/2003) Mo http://q1.schwab.com/s/r?l=248&a=893...a&s=rb0311 20 ---------------------------------------------------------------- On Tue, 18 Nov 2003 23:32:38 GMT, Larry Dighera wrote in Message-Id: : The Air Force plans to fund from its own budget the full multibillion-dollar acquisition of 100 modified BOEING CO. refueling planes and not ask any of the other armed services to chip in, the Air Force's top military officer said. Gen. John Jumper, the chief of staff, said he had no plans to lean on the Army, Navy and Marine Corps -- a possibility the General Accounting Office, Congress's investigative and audit arm, had cited unnamed Air Force officials as raising. Among systems that could be set back, other Air Force officials have said, are LOCKHEED MARTIN CORP.'s F/A-22 multirole fighter and the F-35 Joint Strike Fighter. The Senate gave the Air Force final congressional approval Wednesday to lease 20 modified 767s as tankers and buy up to 80 others -- a deal projected by the Pentagon to cost $27.6 billion through fiscal 2017. (Reuters 04:44 PM ET 11/13/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 13 =============================== ================================= Key senators on Wednesday warned the U.S. Defense Department to limit its order of BOEING CO. jetliners to the number authorized under a law that funds the replacement of Air Force refueling tankers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, made the point as the Senate gave final approval to the tanker acquisition under which the Air Force would lease 20 and buy up to 80 aircraft used to fuel warplanes in midair. At issue could be billions of dollars in potential savings to taxpayers. Originally, the Air Force had sought to acquire all 100 modified 767s through leases, with options to buy at the end of the planned 6-year lease term. Some lawmakers opposed that plan, calling it too expensive. (Reuters 07:24 PM ET 11/12/2003) Mo http://q1.schwab.com/s/r?l=248&a=889...a&s=rb0311 12 ---------------------------------------------------------------- BOEING CO., banned in July from launching government satellites for illegally acquiring a competitor's documents, on Tuesday unveiled a new internal ethics office reporting directly to company Chairman and CEO Phil Condit. Boeing said Senior VP Bonnie Soodik would lead the new organization, assuming responsibility for internal auditing, ethics, import-export compliance, foreign sales consultants and a new U.S. securities law holding managers more accountable for their actions. The move comes as Boeing continues to wait for the Air Force to lift its suspension of three Boeing units from government work, a move that had been expected months ago. The Pentagon's inspector general is also investigating whether Darleen Druyun, a former Air Force official who now works for Boeing, improperly shared proprietary data with Boeing during negotiations on a 767 tanker lease deal. (Reuters 06:02 PM ET 11/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=888...a&s=rb0311 11 On Sat, 08 Nov 2003 17:05:13 GMT, Larry Dighera wrote in Message-Id: : Congressional conferees have approved a multibillion-dollar compromise plan for the Air Force to acquire 100 BOEING CO. refueling aircraft, leasing the first 20 of them, the House of Representatives Armed Services Committee said. Winding up a 2-year battle over the program, the House and Senate armed services panels agreed the remaining 80 would be bought. The leases will begin in fiscal 2006, which starts Oct. 1, 2005, and the purchases will be through fiscal 2014. The deal was part of the fiscal 2004 Defense Authorization Act, which earmarks $400 billion for the Defense Department and national security programs of the Energy Department. Under the revised plan for tankers, which refuel other warplanes in mid-air, the Defense Department will be required to conduct and report on an independent assessment of the condition of the aging fleet of KC-135 tankers. (Reuters 10:08 AM ET 11/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 07 On Fri, 07 Nov 2003 19:34:49 GMT, Larry Dighera wrote in Message-Id: : The Pentagon, bowing to critics, said it would lease just 20 planes under a multibillion-dollar plan to acquire 100 BOEING CO. jetliners for use as refueling tankers, buying the rest outright. If approved by lawmakers, as now expected, the deal would mark the first lease, rather than purchase, of a major weapons system. It has roiled Congress for 2 years over charges the Air Force was giving Boeing a sweetheart deal at taxpayer expense. Originally, the Air Force had sought to lease all 100 tankers, derived from Boeing's commercial 767, and then planned to buy them in a deal costing at least $22.4 billion through 2017. Under the new proposal, the Air Force would start replacing its KC-135E tanker fleet, which average 43 years old, with leased KC-767A planes tankers in 2006. (Reuters 03:16 PM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=887...a&s=rb0311 06 ---------------------------------------------------------------- The White House said a deal is needed quickly that would let the Air Force acquire new BOEING 767s as refueling planes. "There's an urgent need to make this happen sooner rather than later," White House spokesman Scott McClellan said as congressional negotiations continue over an original proposal to lease and then buy 100 planes. (Reuters 10:17 AM ET 11/06/2003) Mo http://q1.schwab.com/s/r?l=248&a=886...a&s=rb0311 06 ---------------------------------------------------------------- On Fri, 31 Oct 2003 21:14:48 GMT, Larry Dighera wrote in Message-Id: : Defense Secretary Donald Rumsfeld said he would "dearly love" Congress to strike a deal that would let the Air Force acquire new BOEING CO. 767s as refueling planes. He seemed to signal acceptance of a scaled-back lease proposed by the Senate Armed Services Committee, alone among four congressional oversight panels to spurn the original plan, valued at more than $22 billion, to lease then buy 100 planes. "Political compromise is what we do when the marbles have been divided and it's to be expected," Rumsfeld told reporters at the Pentagon. The Senate panel has proposed acquiring up to 100 planes by leasing 20 and buying the rest -- a compromise formula designed to save billions. (Reuters 04:28 PM ET 10/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=883...a&s=rb0310 30 ============================ ==================================== A study released on Tuesday raises questions about a U.S. Air Force proposal to give BOEING CO. a $5.3 billion contract to maintain 100 767 refueling tankers, the latest congressional report to criticize the multibillion-dollar lease proposal. Sen. John McCain, chairman of the Senate Commerce Committee and a vocal critic of the $24.3 billion lease and buy deal, released the Congressional Research Service report challenging the Air Force's assertion that Boeing is "uniquely qualified" to provide initial maintenance support. CRS said many other companies routinely serviced 767s, and Boeing was not "the only, or even the largest, organization capable of handling the maintenance needs of the 767." Air Force Secretary James Roche told the Senate Armed Services Committee in a letter dated Oct. 9 that it made sense to give the maintenance contract to Boeing since much of the 767 engineering data was proprietary. But CRS said much of this data could be licensed to a third party to handle maintenance. (Reuters 06:57 PM ET 10/28/2003) Mo http://q1.schwab.com/s/r?l=248&a=882...a&s=rb0310 28 ---------------------------------------------------------------- On Tue, 28 Oct 2003 03:44:41 GMT, Larry Dighera wrote in Message-Id: : Bad blood between the U.S. Congress and the Pentagon has taken a toll on BOEING CO.'s multibillion-dollar drive to lease jetliners to the Air Force as refueling planes, congressional officials and private analysts said on Friday. The Boeing issue laid bare growing strains between Defense Secretary Donald Rumsfeld and his top lieutenants, on the one hand, and the two most powerful Republicans on the Senate Armed Services Committee, on the other. Among other things, the chill reflects pique at what officials on both sides of the aisle deem Rumsfeld's sometimes-dismissive approach to Congress, for instance on the situation in post-war Iraq. But it also reflects perceived slights to Armed Services Committee Chairman John Warner of Virginia, Congress's top overseer of the Defense Department, and the panel's second-ranking Republican, John McCain of Arizona. (Reuters 06:20 PM ET 10/24/2003) Mo http://q1.schwab.com/s/r?l=248&a=881...a&s=rb0310 24 =========================== ===================================== The White House budget office discounted Thursday a key senator's request to "revisit" its endorsement of a multibillion-dollar Air Force plan to lease 100 BOEING CO. 767s as refueling planes. The Office of Management and Budget will review Senate Commerce Committee Chairman John McCain's written request sent Wednesday, said a spokesman. President Bush said on Sept. 16 that he backed the proposed lease to start replacing aging KC-135 tankers. The Air Force says the lease would give it needed capability sooner than it could buy outright without pinching other combat priorities. McCain has denounced the proposed lease, designed to lead to purchases, as a bonanza for Boeing and a bad deal for taxpayers that does not comply with the fiscal 2002 legislation that authorized it. (Reuters 05:00 PM ET 10/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=880...a&s=rb0310 23 =========================== ===================================== The Senate Commerce Committee plans another hearing next week on a controversial multibillion-dollar Air Force proposal to lease 100 BOEING CO. 767 tankers, as the Senate Armed Services Committee continues weigh its options, including approving a scaled-down lease. The armed services panel, chaired by Virginia Republican Sen. John Warner, is the last of four committees that must approve the lease deal -- which the Air Force says it needs to begin replacing its fleet of aging midair refueling tankers without incurring significant upfront funding costs. Warner is under considerable political pressure to approve the lease deal, but aides said the latest reports only underscored his concerns about the higher cost of leasing. (Reuters 06:49 PM ET 10/21/2003) Mo http://q1.schwab.com/s/r?l=248&a=878...a&s=rb0310 21 ---------------------------------------------------------------- On Sat, 18 Oct 2003 01:04:49 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force urged lawmakers to approve its plan to lease 100 BOEING CO. 767 refueling planes despite three new congressional reports poking holes in what would be the first such rental of a major weapons system. "The Air Force is hoping that the Senate Armed Services Committee will approve our original proposal to lease 100 tankers," said a spokeswoman, Major Karen Finn. "The Air Force really needs this capability." The Armed Services Committee is alone among the four military oversight panels that has yet to approve the deal, designed to acquire the tankers without significant upfront funding that would squeeze other combat priorities. The service defended the lease a day after the Congressional Budget Office found taxpayers could reap $6.7 billion in savings with an outright purchase, which is standard procurement procedure for arms systems. (Reuters 04:21 PM ET 10/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=877...a&s=rb0310 17 ========================== ====================================== On Fri, 10 Oct 2003 14:53:26 GMT, Larry Dighera wrote in Message-Id: : The top Democrat on the House of Representatives' Armed Services Committee said he was having second thoughts on a $22.4 billion Air Force plan to lease then buy BOEING Co. refueling planes, citing studies that have challenged its financial soundness. "I think it would be useful to bring members up to date on the many reports and studies that have emerged since our hearings on the issue," Rep. Ike Skelton of Missouri wrote panel chairman Duncan Hunter, R-Calif., on Wednesday. Studies by the Congressional Budget Office, General Accounting Office, Institute for Defense Analyses and Congressional Research Service have shown that acquiring the 100 modified Boeing 767 aircraft initially through a lease, as the Air Force hopes to do, would cost $5.5 billion more than buying them outright. (Reuters 12:53 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- The House of Representatives' Appropriations Committee voted to press ahead with a $22.4 billion proposal to lease then buy BOEING CO. 737s as Air Force refueling planes. But the move to lease 100 modified 767s as mid-air tankers starting in 2006 -- identical to a Senate appropriations measure -- highlighted misgivings about the deal among what appeared to be a growing number of lawmakers. The panel shot down, 33 to 28, a rival plan, jokingly introduced by its top Democrat, David Obey of Wisconsin, that would have earmarked $14 billion to start buying the aircraft outright rather than leasing them first. "If you want to save the taxpayers money, the best way is to buy them now," Obey said in bating colleagues to own up to the lease's extra costs and exercise what he portrayed as fiscal responsibility. (Reuters 03:16 PM ET 10/09/2003) Mo http://q1.schwab.com/s/r?l=248&a=873...a&s=rb0310 09 ---------------------------------------------------------------- On Wed, 08 Oct 2003 18:16:49 GMT, Larry Dighera wrote in Message-Id: : New questions emerged about the personal ties between BOEING CO. and Darleen Druyun, a former top Air Force official who got a job with the company after helping negotiate a multibillion dollar deal to lease Boeing 767s as airborne refueling tankers. The National Legal and Policy Center, a conservative nonprofit group opposing the lease deal, released public records that show Druyun agreed to sell her Virginia home to a senior Boeing attorney while still working for the Air Force as a procurement official. She had been deputy assistant secretary for Air Force acquisition and management. The group also said Druyun's daughter and son-in-law both work for Boeing, a fact confirmed by the Chicago-based company. (Reuters 03:18 PM ET 10/07/2003) Mo http://q1.schwab.com/s/r?l=248&a=872...a&s=rb0310 07 ======================== ======================================== On Sun, 05 Oct 2003 23:33:50 GMT, Larry Dighera wrote in Message-Id: : The nonpartisan U.S. Congressional Research Service raised new doubts on Wednesday about a fresh Pentagon push to acquire BOEING CO. 767 aircraft as midair refueling tankers through a lease. The research service said the Defense Department's latest proposal bolstered the case for purchasing the aircraft outright, rather than leasing them first in a deal valued at $22.4 billion. Earlier this month the Senate Armed Services Committee put off what was to have been a final vote on the lease proposal. Chairman John Warner, a Virginia Republican, and the committee's top Democrat, Carl Levin of Michigan, asked the Pentagon for data on leasing no more than 25 Boeing 767s, down from the 100 sought by the Air Force. (Reuters 07:46 PM ET 10/01/2003) Mo http://q1.schwab.com/s/r?l=248&a=870...a&s=rb0310 01 ---------------------------------------------------------------- On Wed, 01 Oct 2003 23:01:27 GMT, Larry Dighera wrote in Message-Id: : Air Force officials on Monday staunchly defended a $22.4 billion air tanker lease agreement some critics say is a sweetheart deal for BOEING CO. in the face of tough questions from Senate aides. Air Force acquisitions chief Marvin Sambur and Lt. Gen. Michael Zettler, deputy chief of staff for installations and logistics, met with military legislative aides hoping to pave the way for approval by the Senate Armed Services Committee of the plan to lease then buy 100 Boeing 767 tankers. They held a similar -- and equally contentious -- briefing for Senate professional staffers on Friday, aides said. Despite the last-minute push by the Air Force, Senate aides said they did not expect the Senate Armed Services Committee to vote on the controversial lease deal this week, putting off any action until at least mid-October, after a one-week recess. The committee is the final of four congressional panels to review the deal. The other three have approved it. (Reuters 08:08 PM ET 09/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=869...a&s=rb0309 29 ====================== ========================================== On Fri, 26 Sep 2003 18:47:59 GMT, Larry Dighera wrote in Message-Id: : Senate Armed Services Committee member John McCain, who helped stall a $22.4 billion Air Force plan to lease then buy BOEING CO. tankers, rejected as "non-responsive" a modified Defense Department proposal. The Pentagon still has "not adequately justified spending what it now acknowledges will be billions of dollars more to acquire tankers through a lease," McCain, an Arizona Republican, said in letters to the armed services panel's leaders. McCain's new qualms could translate into further delays for the tanker deal -- a plan to lease a major weapons system for the first time rather than buy it outright. (Reuters 04:53 PM ET 09/25/2003) Mo http://q1.schwab.com/s/r?l=248&a=868...a&s=rb0309 25 ===================== =========================================== The Pentagon's inspector general may issue a subpoena to BOEING CO. and the U.S. Air Force for all written materials on a $22.4 billion deal to lease then buy 100 Boeing 767 tankers, congressional and administration sources said on Monday. They said Inspector General Joseph Schmitz is considering the unusual move as he investigates possible impropriety in the lease proposal that critics including U.S. Sen. John McCain have blasted as a sweetheart deal for Boeing. The Pentagon's in-house watchdog agency kicked off its investigation based on documents provided by Boeing to Senate Commerce Committee Chairman McCain, an Arizona Republican. But investigators, including an FBI agent, want to see a complete and full record of documents related to the case, the sources said. (Reuters 05:40 PM ET 09/22/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 22 ---------------------------------------------------------------- Boeing Co (BA) (35.15 +0.26) The Pentagon urged senators to approve a modified $22.4 billion deal to lease, then buy, 100 BOEING CO. 767 tankers, seeking authority to buy 26 of the tankers before their 6-year leases expire to pare total program costs by $1.2 billion. Deputy Defense Secretary Paul Wolfowitz said buying the 26 tankers early, between 2008 and 2010, would add $2.4 billion in initial budget costs while lowering total program costs and allowing the Air Force to immediately begin modernizing its 43-year-old fleet of KC-135 tankers. "The optimum approach must balance the total cost of the program, the additional funds needed ... and the delivery schedule for the new capability," he told the Senate Armed Services Committee, the last of four congressional panels that must vote on the lease deal. (Reuters 02:53 PM ET 09/23/2003) Mo http://q1.schwab.com/s/r?l=248&a=867...a&s=rb0309 23 ===================== =========================================== On Fri, 19 Sep 2003 14:44:14 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's inspector general has told Congress he plans a formal investigation of possible impropriety involving the U.S. Air Force's $22.4 billion proposal to lease then buy BOEING 767 aircraft as refueling tankers, a U.S. lawmaker said on Wednesday. The inspector general, Joseph Schmitz, has concluded that "sufficient credible information exists to warrant" a formal investigation, said Sen. John McCain, an Arizona Republican who has denounced the lease proposal as a sweetheart deal for Boeing. "Up to now, it appears that the interests of taxpayers have been subordinated to those of Boeing," McCain said in disclosing the upgraded probe. In recent weeks, the Pentagon's in-house watchdog has carried out a preliminary inquiry into, among other things, whether an Air Force official gave Boeing proprietary pricing data from Airbus, a rival for the deal, Congressional staffmembers said. (Reuters 10:50 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ---------------------------------------------------------------- President George W. Bush backed a controversial Air Force plan to lease BOEING 767 aircraft as refueling tankers despite criticism from Congress, according to an interview. "I do support it," he said in an interview with the Seattle Post-Intelligencer and other regional newspapers. Senate Armed Services Committee Chairman John Warner, a Virginia Republican, and Carl Levin of Michigan, the panel's top Democrat, have asked Defense Secretary Donald Rumsfeld to consider slashing the Air Force proposal to lease and then buy 100 767s for $22.4 billion. The senators have suggested leasing no more than 25 767s while getting the rest of any needed tankers through standard purchase procedures. Air Force Secretary James Roche said the Air Force was still working on a lease-to-own deal, a possible reference to the up to 25 aircraft that Warner and Levin have suggested. (Reuters 01:34 PM ET 09/17/2003) Mo http://q1.schwab.com/s/r?l=248&a=865...a&s=rb0309 17 ==================== ============================================ On Sat, 13 Sep 2003 15:18:18 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain said that BOEING CO. appeared to have improperly slanted the Pentagon process that led to its troubled $22.4 billion plan to lease then sell modified refueling tankers to the Air Force. "To the extent that Boeing did so, its conduct might have constituted an organizational conflict of interest or anti-competitive behavior," he said in pressing Joseph Schmitz, the Defense Department inspector general, to expand an inquiry into the matter. In a separate letter, McCain, a member of the Armed Services Committee, called on Defense Secretary Donald Rumsfeld to provide all records relating to the lease proposal from both Air Force Secretary James Roche and the Pentagon's acting chief weapons buyer, Michael Wynne. (Reuters 08:38 PM ET 09/11/2003) Mo http://q1.schwab.com/s/r?l=248&a=863...a&s=rb0309 11 ---------------------------------------------------------------- On Wed, 10 Sep 2003 19:35:53 GMT, Larry Dighera wrote in Message-Id: : The U.S. Air Force on Monday said it expected to respond by early next week to a letter from the Senate Armed Services Committee proposing a scaled-down lease of 25 BOEING CO. 767s tankers. "We're in the process of preparing our letter," said Air Force spokeswoman Gloria Cales. "We should have our response pulled together later this week or early next week." Cales gave no details, but Air Force acquisitions chief Marvin Sambur last week said it would be "significantly more expensive" to lease fewer airplanes, due to lost volume discounts and the impact of inflation. Once the Air Force completed its response, it would go to Defense Secretary Donald Rumsfeld for approval, she said. (Reuters 06:17 PM ET 09/08/2003) Mo http://q1.schwab.com/s/r?l=248&a=862...a&s=rb0309 08 ---------------------------------------------------------------- On Sat, 06 Sep 2003 11:43:43 GMT, Larry Dighera wrote in Message-Id: : Sen. John McCain, who has criticized the cost of a U.S. Air Force proposal to lease BOEING CO. 767s as refueling tankers, said on Friday he would press Air Force Secretary James Roche and other top Pentagon officials to hand over all records on the deal. "We'll be asking for as much information as we can get," McCain said in a telephone interview, 1 day after the Senate Armed Services Committee on which he serves delayed an expected vote on a $22.4 billion lease-to-buy plan. (Reuters 04:23 PM ET 09/05/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 05 ================= =============================================== On Fri, 05 Sep 2003 17:20:17 GMT, Larry Dighera wrote in Message-Id: : The Pentagon's Inspector General announced a formal investigation into whether an Air Force official improperly shared data with BOEING CO., raising new questions about a $22.4 billion Air Force deal to lease, then buy 100 767 tankers. Sen. John McCain cited the investigation and once again blasted the proposed lease deal at a Senate Commerce Committee hearing, while Alaska Republican Sen. Ted Stevens underscored what he called the urgency of quickly replacing the Air Force's aging fleet of KC-135 tankers due to increased wartime use. McCain said documents provided by Chicago-based Boeing, the Air Force and the Pentagon which prompted the investigation showed an "extremely aggressive sales pitch" for the deal. (Reuters 04:11 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Darleen Druyun, a former Air Force official, offered as early as October 2001 to meet with investors to stress the low risk of a deal for the Air Force to lease Boeing tankers, a BOEING CO. memorandum shows. The Pentagon's Inspector General on Wednesday launched a formal investigation into whether the Air Force shared proprietary data with Boeing, an inquiry defense officials said was focused on Druyun, who joined Boeing in January 2003 after retiring from the Air Force in November 2002. Boeing denies it received any proprietary data during the negotiations, and Druyun had declined interview requests. The company insists Druyun has not been involved in the lease negotiations since joining the company, adhering firmly to federal rules for former defense officials. Pentagon investigators will try to determine if Druyun overstepped her bounds in those discussions, but congressional sources said it was clear from a series of emails provided to lawmakers by Boeing that she played a key role early in the Air Force's negotiations with Boeing. (Reuters 08:12 PM ET 09/03/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 03 ---------------------------------------------------------------- Senate Armed Services Committee Chairman John Warner said his panel would not rush to a vote on a controversial Air Force plan to lease 100 BOEING CO. 767 refueling tankers, which has been dogged by questions about its cost and propriety. "We owe an obligation to the taxpayers to very carefully assess this issue," the Virginia Republican said at the opening of a hearing into the $22.4 billion Air Force proposal to lease and then buy 100 aerial tankers. Warner said members of his panel would hold discussions in a closed hearing after taking testimony from witnesses before he would schedule a vote. (Reuters 10:26 AM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 04 ---------------------------------------------------------------- The U.S. Senate Armed Services Committee has asked Defense Secretary Donald Rumsfeld to look at leasing just one quarter of the 100 BOEING CO. 767s sought by the Air Force as refueling tankers, officials said. The committee will postpone a vote on the Air Force's plan until it gets a Pentagon analysis, the officials said. (Reuters 05:05 PM ET 09/04/2003) Mo http://q1.schwab.com/s/r?l=248&a=861...a&s=rb0309 04 ---------------------------------------------------------------- On Wed, 03 Sep 2003 03:45:48 GMT, Larry Dighera wrote in Message-Id: : Dozens of email exchanges among BOEING CO., the Air Force and the Pentagon released on Saturday raised fresh questions about a controversial $22.5 billion deal to lease, then buy 100 Boeing 767 tankers. The documents were among more than 8,000 provided to the Senate Commerce Committee as it investigated a deal its chairman, Sen. John McCain describes as a "military-industrial rip-off" and a government bailout of Boeing, whose commercial aircraft sales slumped after the September 2001 hijack attacks. The documents contain no "smoking guns," congressional sources say, but they show a close relationship between Boeing and Air Force officials, including Air Force Secretary James Roche, as well as details of a rival bid by Airbus SA. (Reuters 05:11 PM ET 08/30/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30 ---------------------------------------------------------------- Critics of a $22.4 billion Air Force proposal to lease, then buy, 100 Boeing 767s as refueling tankers plan to raise financing and cost concerns at a Senate hearing on Wednesday in a final bid to block the deal. Defense analysts predict tough questions in the Senate Commerce Committee and other hearings this week, but say the need to replace the Air Force's KC-135 tankers, which are on average 43 years old, will ultimately win the votes needed for approval. Arizona Republican Sen. John McCain, chairman of the Commerce Committee, blasts the deal as a government bailout of BOEING CO., whose commercial aircraft sales slumped after the September 2001 hijack attacks. The Congressional Budget Office, the General Accounting Office and several government watchdog groups are also skeptical of the deal, which has already won needed approval from three of four congressional committees. (Reuters 05:06 PM ET 09/02/2003) Mo http://q1.schwab.com/s/r?l=248&a=860...a&s=rb0309 02 =============== ================================================= On Mon, 01 Sep 2003 16:12:34 GMT, Larry Dighera wrote in Message-Id: : BOEING CO. rejected published reports that it might have obtained rival bidder Airbus SAS's proprietary information while negotiating a proposed $22.5 billion refueling tanker lease-purchase agreement with the U.S. Air Force. "Boeing believes we did not receive any proprietary information from any official on any subject throughout the entire tanker lease-negotiation process," said Doug Kennett, a spokesman for the company. Earlier in the day, the Seattle Post-Intelligencer, citing an unnamed source, reported what it called new allegations that a senior Air Force official had "provided Boeing with proprietary information" about Airbus's offer to supply its own aircraft and modify them for the refueling mission. The French-German aerospace firm that controls Airbus said its response to the U.S. Air Force's original request for tanker bids was "proprietary in nature and was furnished to the Air Force in confidence." (Reuters 01:31 PM ET 08/29/2003) Mo http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 29 ============== ================================================== On Mon, 01 Sep 2003 15:07:06 GMT, Larry Dighera wrote in Message-Id: : ------------------------------------------------------------------- AVflash Volume 9, Number 36a September 1, 2003 ------------------------------------------------------------------- BOEING TO FACE SENATE HEARING ON TANKER LEASE Boeing is under scrutiny, and the heat is about to intensify on Wednesday, when a hearing will be held by the Senate Commerce Committee about the planemaker's $21-billion leasing deal with the U.S. Air Force for 100 B767 aerial refueling tankers. A report issued last week by the Congressional Budget Office concluded that "the proposed transaction would essentially be a purchase of the tankers by the federal government but at a cost greater than would be incurred under the normal appropriation and procurement process." The Seattle Post-Intelligencer reported Friday that Boeing may have had improper access to information about Airbus's competing proposal for the tanker deal. Boeing denied that allegation. Sen. John McCain (R-Ariz.), a longtime vocal critic of the lease -- which he has termed "corporate welfare" for Boeing -- will preside over the hearing. Boeing has already been in trouble for "industrial espionage" this summer. http://www.avweb.com/eletter/archive...ll.html#185597 On Wed, 27 Aug 2003 16:15:04 GMT, Larry Dighera wrote in Message-Id: : The U.S. Congressional Budget Office said the U.S. Air Force's plan to lease 100 BOEING CO. 767s as refueling tankers will cost $1.3 billion to $2 billion more than an outright purchase. The congressional agency said the proposed lease also failed to meet four out of six conditions set for government leases by the White House Office of Management and Budget. In a report published on its web site, CBO said on average, the Air Force would spent $161 million for each new refueling tanker in 2002 dollars, compared to a cost of $131 million for an outright purchase. Two Senate committee plan hearings on the deal next week. The Air Force has said the deal would be about $150 million more costly than a purchase, but say leasing is preferable since it would allow the military to begin replacing its aging fleet of KC-135 refueling tanker far sooner. (Reuters 04:27 PM ET 08/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=858...a&s=rb0308 26 ---------------------------------------------------------------- On Tue, 29 Jul 2003 14:37:39 GMT, Larry Dighera wrote in Message-Id: : A key panel in the U.S. House of Representatives on Friday approved Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the lease would tie up less money in coming years than a purchase. "(The tanker leasing proposal) allows us to replace the aging fleet more quickly, while retaining an essential combat capability over the next several decades," Rep. Duncan Hunter, chair of the House Armed Services Committee , said in a statement late on Friday. "For this reason, I am endorsing the proposal by the Secretary of Defense to lease 100 KC-767 aerial refueling tankers from the Boeing Corporation . The required notification will be sent this evening." (Reuters 01:58 AM ET 07/26/2003) Mo http://q1.schwab.com/s/r?l=248&a=846...a&s=rb0307 26 =========== ================================================== === On Fri, 25 Jul 2003 10:51:58 GMT, Larry Dighera wrote in Message-Id: : The General Accounting Office raised questions about U.S. Air Force plans to lease 100 BOEING CO. 767 refueling tankers, saying the purchase cost of the planes after the 6-year lease was higher than that reported by the military. GAO's $173.5 million per plane price is substantially higher than the $138.4 million -- $131 million plus $7.4 million for financing costs -- cited by the Air Force, said Neal Curtin, director of defense capabiliti es 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 Congres s last Friday showed leasing could cost as much as $1.9 billion more than a straight purchase, more than 10% of the propose d $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 taxpaye r-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, urgentl y needs an upgrade, saying the maintenance savings from the 100 proposed new aircraft would be worth $5 billion. (Reuter s 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: : ------------------------------------------------------------------- AVflas h 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 compan y, so when Boeing stamps its feet, the ground shakes under most of us. Lately the Chicago-headquartered manufacturer has been attracti ng 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 compan y 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 Force s Committee's subcommittee on projection forces. The heari ng was the first of several expected on the controversial propose d $16 billion lease agreement aimed at starting to repla ce the Air Force's fleet of 543 KC-135 refueling tankers, which average 42 years in age. (Reuter s 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 BOEI NG CO. a "rip-off," sent a letter to Boeing Chief Executive Phil ip Condit requesting documents related to the deal, The Wall Stre et Journal reported. McCain, the chair of the U.S. Senate's Commer ce Committee, is seeking all communication between Boeing and government officials related to the lease, as well as docume nts from Boeing's interactions with commercial and foreig n 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 respon se. Critics of the deal have called on U.S. lawmakers to dela y approval of a $16 billion deal in which the Air Force will lease planes from Boeing to replace its aging fleet of refuel ing aircraft. (Reute rs 05:53 AM ET 06/17/2003) More : 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 wrot e in Message-Id: : Sev en independent groups blasted a $16 billion BOEING CO. lease dea l with the Air Force as "a profligate waste of taxpayer dolla rs" and said lawmakers should delay its approval until a crimi nal investigation into another Boeing contract is compl eted. Boeing, anticipating the letter, on Monday bought ful l-page advertisements in major U.S. newspapers, admitting its employees acted improperly during a fierce competition with LOCKH EED MARTIN CORP. for a $2 billion rocket deal. But Boeing Chair man and Chief Executive Phil Condit said the company had tak en appropriate action after it learned of the errors and wou ld not tolerate unethical behavior. The Project on Gover nment Oversight, which also signed the letter, rejected Condi t's statement and said it had documented 36 cases of misco nduct or alleged misconduct by Boeing workers between 1990 and 2002, resulting in about $348 million in fines or penalties, resti tution and settlement fees. (Reut ers 01:00 AM ET 06/10/2003) Mor e: 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 pl an for BOEING CO. to lease 100 modified 767 jets to the Air Forc e, but congressional aides and defense experts did not expe ct the deal to run into last-minute problems on Capitol Hill . Despite the Bush administration's approval of the lease, defe nse 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, he ad of the Virginia-based Lexington Institute. "I don't see it bein g held up. The Air Force wants it, the administration wants it and some very key people in both houses of Congress want it." (Reu ters 05:19 PM ET 05/27/2003) More : 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 wrot e: T he White House budget office said that scant headway had been mad e as far as it was concerned toward a proposed mul tibillion-dollar Air Force tanker-lease deal with BOEING CO. despite a string of high-level meetings. "OMB (Office of Man agement and Budget) doesn't see a lot of progress since last wee k," said spokesman Trent Duffy. Deputy Defense Secretary Paul Wol fowitz discussed a revised proposal Tuesday night with both t he Pentagon's chief weapons buyer, Edward Aldridge, and Air For ce secretary James Roche. Wolfowitz is "taking the proposed tan ker lease under advisement," Cheryl Irwin, a Pentagon spo keswoman, said. She said she did not know how long a dec ision might take. The deal has been under discussion since ear ly last year. (Re uters 06:53 PM ET 05/21/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=819...a&s=rb0305 21 ---------------------------------------------------------------- T op Pentagon officials late on Tuesday began reviewing the Air For ce's plans to lease 100 BOEING CO. 767s as refueling tankers aft er the company further lowered its price, sources familiar wit h the agreement said. After nonstop negotiations, Boeing had agr eed to lower the price for each of the modified 767-200ER pla nes below the figure of $136 million reported last week. The pri ce of the overall lease deal -- which critics have blasted as cor porate welfare for a company hard hit by a slump in com mercial sales -- was now below $17 billion, including the ter ms of the 6-year lease and an Air Force purchase at the end o f the lease, the sources said. The initial deal called for the A ir Force to pay $17 billion for the lease, and $4 billion for pur chase at the end. (Re uters 05:35 PM ET 05/20/2003) Mor e: http://q1.schwab.com/s/r?l=248&a=818...a&s=rb0305 20 ---------------------------------------------------------------- O n Tue, 13 May 2003 02:14:28 GMT, Larry Dighera wro te: BO EING CO. has agreed to reduce by 6% the price of a multibillion de al to lease 100 767 aircraft to the Air Force as refueling ta nkers, 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 ea ch. The officials said a decision on the deal -- which has be en in the works for over 18 months -- could come soon. But th ey said defense officials were at pains to review the ag reement very carefully, since it marked the first time the U. S. military would lease -- rather than buy -- such a large nu mber of aircraft. The lease had been expected to cost $17 bi llion over 6 years, with the Air Force to pay an additional $4 billion to buy the planes at the end of the term. (R euters 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 wr ote: T he Defense Department still has issues to resolve before e ndorsing a multibillion dollar U.S. Air Force proposal to l ease 100 BOEING CO. 767s as refueling tankers, the prime c ongressional mover behind the plan said Wednesday. "I'm t alking to all parties, trying to move this thing forward -- a nd we're still not quite there yet," said Rep. Norm Dicks, the W ashington Democrat who spearheaded the law authorizing the u nusual leasing arrangement. The Air Force and Boeing have been w orking on the proposed lease for more than a year. Their t entative deal involved a $17 billion lease over 6 years, with a n option to purchase the aircraft for another $4 billion at t he end of the lease. By some accounts, the Defense Department h ad been expected to sign off any day now following a fresh r ound of meetings on Friday and over the weekend that r eportedly lowered the cost to the Air Force. ( Reuters 05:39 PM ET 05/07/2003) M o http://q1.schwab.com/s/r?l=248&a=812...a&s=rb0305 07 ---------------------------------------------------------------- O n Wed, 07 May 2003 17:40:54 GMT, Larry Dighera w rote: 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 : 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 : 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 : 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 : BOEING CO. said it no longer expected to wrap up as early as next month a proposed deal, valued at as much as $18 billion, to lease 100 aerial refueling tankers to the U.S. Air Force. Instead, it may take until early next year to reach agreement with the Air Force, partly because of a new Congress taking office in January, said Jim Albaugh, president and chief executive of Boeing's Integrated Defense Systems unit. "We're in final negotiations with the customer," he told reporters at a briefing on the company's scheduled first launch of its Delta 4 rocket. (Reuters 12:52 PM ET 11/14/2002) Mo http://q1.schwab.com/s/r?l=248&a=737...a&s=rb0211 14 ========================================== ====================== On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera (Larry Dighera) wrote in Message ID : BOEING CO. said its proposal to lease 100 aerial refueling tankers would cost the U.S. Air Force about $17 billion, some $10 billion less than previously estimated, with an option to purchase the aircraft for another $4 billion. The current estimate must still be scrutinized by the Pentagon's Cost Analysis Improvement Group, but if accurate, it could ease concern in Congress and at the White House over the initial price tag of $26 billion to $28 billion. "It will turn out to be more like the $17 to $18 billion we are talking about," Boeing's VP for airlift and tanker programs Howard Chambers told Reuters by telephone. "Over the last six months we have gotten more clarity." (Reuters 03:08 PM ET 11/07/2002) Mo http://q1.schwab.com/s/r?l=248&a=734...a&s=rb0211 07 ---------------------------------------------------------------- On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera (Larry Dighera) wrote in Message ID i4disug2gpmufjvj7kk9u4iagtrsk3m6tt@new s-server.socal.rr.com: 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 d5panukhiq14qdrpfaelragtu8ehs5fem6@ne ws-server.socal.rr.com: 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 fj05lu8e0tt7sihbptme3g7ai8s0q16n7u@new s-server.socal.rr.com: 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 lphia.net: More like an Air Farce, not a Boeing, boondoggle! Can't sell something to a customer when they do not want it!! Get it right or forget it! WDA end "Larry Dighera" wrote in message news:8j8cjug531sd2e94mknqm7p7id0l4uvf ... 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?
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