767 fuel tanker deal takes another hit

  • Associated Press
  • Wednesday, May 12, 2004 9:00pm
  • Business

WASHINGTON – There is no compelling reason for the U.S. Air Force to immediately acquire 100 air refueling tankers from the Boeing Co., a new Defense Department report concludes in another blow to the controversial deal.

The report by the Defense Science Board says that, contrary to Air Force claims, corrosion of the aging tanker fleet is “manageable” and several options exist to refurbish the fleet.

If officials are willing to tolerate increased maintenance costs, “you can defer major near-term … investments” to replace the tanker fleet, the report said.

Boeing spokesman Doug Kennett said the company had not seen the report but stood ready to assist the Air Force. “We believe that the 767 is clearly the best solution to the nation’s aerial tanker needs,” he said.

A watchdog group said the report was the latest evidence that the Air Force should not go through with the tanker deal, in which the Air Force would lease 20 767s from Boeing for use as refueling tankers, and purchase another 80 planes.

The planes would be made at Boeing’s Everett plant and modified for military use in Wichita, Kan.

Members of Congress were briefed on the report late Wednesday., although the document hasn’t been released.

It follows a report in April from the Pentagon’s inspector general, who concluded that the Pentagon should not move forward on the $23.5 billion contract until significant changes have been made.

The Pentagon inspector general, Joseph Schmitz, said procedural and financial problems with the deal could cause the government to spend up to $4.5 billion more than necessary.

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