Boeing Boondoggle

#1 July 7th 03, 11:19 AM

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AVflash Volume 9, Number 28a July 7, 2003
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BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
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On Thu, 26 Jun 2003 01:07:00 GMT, Larry Dighera
wrote in Message-Id: :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mo
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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
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On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24eq4@ne ws-server.san.rr.com:

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
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On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
4n8e4v8av75ot2gflip94v7os0460t8uqi@n ews-server.socal.rr.com:

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
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On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d7d92v8q5sdkupes0o5fovvhusalh4g9iv@ news-server.socal.rr.com:

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

Mo
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On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
ifpdtuovlha5l2fbpreojtfbrjlc3s411s @news-server.san.rr.com:

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

Mo
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On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
dvissu4135etdu8toc2l6hrje2lji0gdo :

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

Mo
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On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
i4disug2gpmufjvj7kk9u4iagtrsk3m6 :

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

Mo
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On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
d5panukhiq14qdrpfaelragtu8ehs5f :

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

Mo
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On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fj05lu8e0tt7sihbptme3g7ai8s0q1 :

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

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

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mknqm7p7 ...

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

Mo

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

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Boeing Co (BA) (45.00 +0.45)

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

Mo

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

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Boeing Co (BA) (44.28 +0.65)

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

Mo

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0

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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07

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

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

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

#2 July 15th 03, 11:02 AM

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

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

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

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AVflash Volume 9, Number 28a July 7, 2003
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BOEING GETS AID FUNDS?...
It's the U.S.'s largest exporter and by far its largest aerospace
company, so when Boeing stamps its feet, the ground shakes under most
of us. Lately the Chicago-headquartered manufacturer has been
attracting the attention of critics who claim Boeing is drawing too
much from the government trough. The Citizens Against Government Waste
(CAGW) has formally asked the House Armed Services Subcommittee to
oppose a $21 billion deal for Boeing to lease 100 767 aerial tankers
to the Air Force. The CAGW claims upgrading the existing fleet of 127
707-based KC-135s would cost $3.8 billion and it also points out that
after leasing the 767s for 10 years the planes go back to Boeing. The
company is also (according to some) seeing some extremely generous
offers from states and towns as it dangles the carrot of 1,000 jobs to
be won by the location that will build its new 7E7 Dreamliner.
http://www.avweb.com/newswire/9_28a/...85269-1.html#2
------------------------------------------------------------------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24eq4@n ews-server.san.rr.com:

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
4n8e4v8av75ot2gflip94v7os0460t8uqi@ news-server.socal.rr.com:

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
d7d92v8q5sdkupes0o5fovvhusalh4g9iv @news-server.socal.rr.com:

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
ifpdtuovlha5l2fbpreojtfbrjlc3s411 :

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
dvissu4135etdu8toc2l6hrje2lji0gd :

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
i4disug2gpmufjvj7kk9u4iagtrsk3m :

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
d5panukhiq14qdrpfaelragtu8ehs5 :

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
fj05lu8e0tt7sihbptme3g7ai8s0q :

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

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

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

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

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mknqm7p ...

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?

#3 July 29th 03, 03:37 PM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24eq4 @news-server.san.rr.com:

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
4n8e4v8av75ot2gflip94v7os0460t8uq :

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
d7d92v8q5sdkupes0o5fovvhusalh4g9 :

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
ifpdtuovlha5l2fbpreojtfbrjlc3s4 :

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
dvissu4135etdu8toc2l6hrje2lji0 :

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
i4disug2gpmufjvj7kk9u4iagtrsk :

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
d5panukhiq14qdrpfaelragtu8eh :

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
fj05lu8e0tt7sihbptme3g7ai8s :

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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3921471@new s3.news.adelphia.net:

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mknqm ...

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

Mo

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

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

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

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

Mo

http://q1.schwab.com/s/r?l=248&a=643...a&s=rb0205 15
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On Tue, 14 May 2002 00:55:42 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
:

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

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

Mo

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

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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

--

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

#4 August 27th 03, 05:15 PM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24eq :

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
4n8e4v8av75ot2gflip94v7os0460t8u :

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
d7d92v8q5sdkupes0o5fovvhusalh4g :

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
ifpdtuovlha5l2fbpreojtfbrjlc3s :

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
dvissu4135etdu8toc2l6hrje2lji :

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
i4disug2gpmufjvj7kk9u4iagtrs :

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
d5panukhiq14qdrpfaelragtu8e :

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
fj05lu8e0tt7sihbptme3g7ai8 :

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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3921471@ne ws3.news.adelphia.net:

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mknq ...

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

Mo

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

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

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

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

Mo

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

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

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

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

Mo

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

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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

--

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

#5 September 1st 03, 04:07 PM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24e :

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
4n8e4v8av75ot2gflip94v7os0460t8 :

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
d7d92v8q5sdkupes0o5fovvhusalh4 :

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
ifpdtuovlha5l2fbpreojtfbrjlc3 :

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
dvissu4135etdu8toc2l6hrje2lj :

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
i4disug2gpmufjvj7kk9u4iagtr :

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
d5panukhiq14qdrpfaelragtu8 :

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
fj05lu8e0tt7sihbptme3g7ai :

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

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

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
(W. D. Allen) wrote in Message ID
EMCZ8.6962$ka6.3921471@n ews3.news.adelphia.net:

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mkn ...

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

Mo

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

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

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

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

Mo

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

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

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

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

Mo

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

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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

--

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

#6 September 1st 03, 05:12 PM

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera
(Larry Dighera) wrote in Message ID
fjrn4vkjedt414f5o81d7esh3fkit24 :

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
4n8e4v8av75ot2gflip94v7os0460t :

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
d7d92v8q5sdkupes0o5fovvhusalh :

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
ifpdtuovlha5l2fbpreojtfbrjlc :

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
dvissu4135etdu8toc2l6hrje2l :

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
i4disug2gpmufjvj7kk9u4iagt :

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
d5panukhiq14qdrpfaelragtu :

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
fj05lu8e0tt7sihbptme3g7a :

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

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

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

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

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

WDA

end

"Larry Dighera" wrote in message
news:8j8cjug531sd2e94mk ...

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

Mo

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

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

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

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

Mo

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

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

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

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

Mo

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

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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

--

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

#7 September 2nd 03, 02:58 PM

Larry Dighera wrote:

Keeerist Larry!...get that thing under control won't you?...
--

-Gord.

#8 September 3rd 03, 04:45 AM

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

Mo
http://q1.schwab.com/s/r?l=248&a=859...a&s=rb0308 30

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

----------

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

WDA

end

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

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

Mo

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

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

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

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

Mo

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

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

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

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

Mo

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

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

Boeing Co (BA) (44.41 +1.27)

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

Mo

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

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

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

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

--

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

#9 September 4th 03, 08:00 PM

Since you seem to get all your news on this subject from commercial press
such as the Washington Post, here are some public statements with a little
broader perspective.

http://www.boeing.com/news/breakingn...0903_roche.pdf
http://www.boeing.com/news/breakingn...ams030903.html

Big picture is the lease does not cost as much as the Washington Post said,
Airbus lost not because of price but because they don't have a boom design
which is a high risk item on any proposed Airbus solution and Boeing is
providing the aircraft at commercial lease rates including most favored
customer price guarantees and profit caps.

By the way boondoggle is usually associated with non-useful activites (make
work). Are you suggesting that the Air Force does not need these tankers?

"Larry Dighera" wrote in message
...

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

Mo

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

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

Mo

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

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

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

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

Mo

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

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

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

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

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

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

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

Mo

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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...19411a&s=rb030
726

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

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...019368a&s=rb03
0723

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

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

Mo

http://q1.schwab.com/s/r?l=248&a=840...0018904a&s=rb0
30714

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

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...200020805a&s=r
b030624

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

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...c205020353a&s=
rb030617

On Thu, 12 Jun 2003 13:33:18 GMT, Larry Dighera

wrote in Message-Id:
:

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

Mo

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=rb030610

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

wrote:

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

Mo

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s=rb030527

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

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

wrote:

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

Mo

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&s=rb030521

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

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

Mo

http://q1.schwab.com/s/r?l=248&a=818...bfeb800020506a
&s=rb030520

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

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

wrote:

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

Mo

http://q1.schwab.com/s/r?l=248&a=814...c0230405020467
a&s=rb030512

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

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

wrote:

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

Mo

http://q1.schwab.com/s/r?l=248&a=812...ebadba40002046
2a&s=rb030507

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

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

wrote:

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

Mo

http://q1.schwab.com/s/r?l=248&a=811...3eb83894050203
39a&s=rb030506

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

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...23eb2f6d100020
347a&s=rb030501

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

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...623ea5c3730002
0129a&s=rb030421

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

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...0623e95f0d5000
20018a&s=rb030410

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...00623e6d218e00
019242a&s=rb030307

On Thu, 13 Feb 2003 19:14:37 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

fjrn4vkjedt414f5o81d7esh3fkit2
m:

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...100623e3865120
5019134a&s=rb030129

On Mon, 10 Feb 2003 03:57:25 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

4n8e4v8av75ot2gflip94v7os0460
..com:

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=773192&m=100623e4445ab
00018999a&s=rb030207

On Wed, 15 Jan 2003 01:12:47 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

d7d92v8q5sdkupes0o5fovvhusal
r.com:

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=759904&m=100623e249f1
a03352909a&s=rb030113

----------

On Sun, 17 Nov 2002 00:43:37 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

ifpdtuovlha5l2fbpreojtfbrjl
..com:

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=737786&m=100623dd433
1c03353370a&s=rb021114

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

On Sun, 10 Nov 2002 12:08:17 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

dvissu4135etdu8toc2l6hrje2
..rr.com:

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=734536&m=100623dcaf
9b400015721a&s=rb021107

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

On Wed, 06 Nov 2002 15:26:33 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

i4disug2gpmufjvj7kk9u4iag
l.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=732763&m=100623dc8
558500015335a&s=rb021105

On Wed, 04 Sep 2002 01:41:34 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

d5panukhiq14qdrpfaelragt
al.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=699624&m=100623d7
5386100022944a&s=rb020903

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

On Thu, 08 Aug 2002 14:39:41 GMT, Larry Dighera

(Larry Dighera) wrote in Message ID

fj05lu8e0tt7sihbptme3g7
cal.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=687814&m=100623d
51a0e803362003a&s=rb020806

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

On Thu, 18 Jul 2002 17:19:32 GMT, "W. D. Allen"
t (W. D. Allen) wrote in
Message ID

EMCZ8.6962$ka6.3921471 @news3.news.adelphia.net:

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

WDA

end

"Larry Dighera" wrote in
message

news:8j8cjug531sd2e94m knqm7p7id0l4uvfvt@news-ser
ver.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=674817&m=100623
d35f15203361594a&s=rb020717

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=643872&m=10062
3ce4361f03360177a&s=rb020515

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

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=641505&m=1006
23ce0406e03359831a&s=rb02051
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=639337&m=100
623cd9a90f00020925a&s=rb0205
07

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

m:

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

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

--

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

#10 September 5th 03, 11:37 AM

Thanks for your input on the subject.

On Thu, 04 Sep 2003 19:00:22 GMT, "William Wright"
wrote in Message-Id: aZL5b.264473$cF.83235@rwcrnsc53:

By the way boondoggle is usually associated with non-useful activites (make
work). Are you suggesting that the Air Force does not need these tankers?

The subject of this thread was taken from the article available he
http://www.commondreams.org/views02/0106-07.htm

Here's the header of the message that started this thread:

From: Chris Behrens
Newsgroups: rec.aviation.military
Subject: Boeing Boondoggle
Organization: Salisbury Solutions
X-Newsreader: MicroPlanet Gravity v2.30
Lines: 10
Message-ID:
Date: Wed, 09 Jan 2002 11:05:15 GMT

As you can see, the choice of the word 'boondoggle' was not mine, nor
that of the original poster.

As to the meaning of the word 'boondoggle' here's Merriam Webster's
definition:

boon•dog•gle \"bun-'da-gel, -'do-\ noun [coined by Robert H. Link
†1957 Am. scoutmaster] (1929)
1 : a braided cord worn by Boy Scouts as a neckerchief slide,
hatband, or ornament
2 : a wasteful or impractical project or activity often
involving graft
boondoggle
verb intransitive
boon•dog•gler \-g(e-)ler\ noun

Merriam-Webster, Incorporated.

--

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

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