As the Tanker Turns
Published 9:00 pm Tuesday, February 7, 2006
You know I still cannot be-LIEVE that holding penalty. ARRGGGHHHH!!!!!
Anyway … We return you now to the aerospace industry, already in progress. And in today’s episode of As the Tanker Turns, Reuters reports http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-02-06T232544Z_01_N06166586_RTRIDST_0_BUSH-BUDGET-TANKER.XML that the Air Force is looking to spend some $8 billion over the next five years to start replacing its aging KC-135 tankers.
Key Quote: “The Air Force could then launch a formal competition later in the year, with an eye to awarding a contract in 2007 and first deliveries in 2011 or 2012, said one Air Force official.”
But in an interesting plot twist, Flight International suggests http://www.flightinternational.com/Articles/2006/02/07/Navigation/177/204540/Boeing+faces+777+tanker+dilemma.html that the still-unreleased Rand Corp. study may have set the stage for not one, but TWO tanker competitions. At least, that seems to be Boeing’s take on it:
Key Quote: “Reports say the still-classified (Rand study) calls for the air force to acquire medium to large tankers converted from commercial airliners. ‘Those are two different entities,’ says John Sams, Boeing vice-president, air force systems. A medium tanker would replace the Boeing KC-135, while a large aircraft would augment the USAF’s McDonnell Douglas KC-10 tanker/transport fleet. ‘Which one does the air force plan to recapitalise first?’ he asks.”
The Flight story suggests the study should be viewed as a boost to the EADS/Northrop team, which is proposing a KC-30 tanker that would be larger than Boeing’s KC-767. However, it also suggests the door is open for a tanker based on Boeing’s 777F cargo jet, which is bigger than either one.
