Tanker Competition On

From today's WSJ...

Air Force Tanker
Gets Nod; Boeing,
Airbus to Compete
By REBECCA CHRISTIE
DOW JONES NEWSWIRES
April 15, 2006;*Page*A2
WASHINGTON -- The Pentagon said it will let the Air Force start a
competition for its next-generation tanker plane, clearing the way for a
showdown between Boeing Co. and European rival Airbus.
The Defense Department said chief weapons buyer Ken Krieg signed off on
the plan late Thursday. Recent studies "indicate that the department has
sufficient time to structure a traditional competitive program to gain
the best value for the taxpayer," Mr. Krieg said in a memo.
The Air Force expects to release its information request within a few
weeks. Air Force Secretary Michael Wynne received Mr. Krieg's memo and
will issue instructions soon, said Air Force spokesman Doug Karas.

The Air Force wants a new tanker, used to refuel aircraft in flight,
based on a widely available passenger jet. Its existing tankers, related
to Boeing's long-retired 707 passenger jet, are about 45 years old but
will continue flying until replacements are ready.
Boeing, based in Chicago, wants the Air Force to buy its 767-based
tanker, which Italy and Japan already have ordered. But it will face
competition from the Airbus 330, which is being converted into a tanker
by European Aeronautic Defence and Space Co. -- the owner of 80% of
Airbus -- and Los Angeles-based Northrop Grumman Corp.
The coming battle should reassure lawmakers, who blocked an earlier $23
billion plan to lease and buy 100 Boeing planes. That deal mushroomed
into a larger procurement scandal when it emerged that a former Air
Force weapons buyer, Darleen Druyun, held illegal job talks with Boeing.
Ms. Druyun admitted breaking federal conflict-of-interest laws and
served a nine-month prison term.
Boeing declined to comment on the latest developments. Northrop Grumman,
which leads the Airbus-based team, said it has a versatile solution to
offer when the Air Force is ready.
"Northrop Grumman is pleased to see the process moving forward and we
welcome the opportunity to respond to the upcoming request for
information and subsequent request for proposal," spokesman Randy Belote
said.
Analysts don't expect another major contender to emerge, even though
several government-backed studies said the Air Force could consider
other airplanes. Boeing and Airbus each make other jets that might be
suitable, and the studies also looked at prospects for used aircraft or
an all-new tanker.
Air Force officials have said a request for proposals could come in
2006, with a contract awarded next year. That schedule may slip a bit,
said Lexington Institute defense analyst Loren Thompson, who provides
consulting services to military aircraft maker Lockheed Martin Corp. and
other defense companies.
"Sometime early next year there's going to be a request for proposals
that will result in the Air Force buying 100 Boeing or Airbus aircraft
as its next-generation tanker. I don't see any other solutions that the
Air Force is willing to embrace," Mr. Thompson said.
Write to Rebecca Christie at

FROM THE ARCHIVES
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€*Pentagon Study Supports Both Boeing, Airbus
01/26/06
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€*Boeing May Enter Modified 777 in Tanker Battle
12/05/05
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