Bush backs 767 tanker lease deal

WASHINGTON — A widely criticized plan to lease 100 jet refueling tankers from the Boeing Co. got a boost this week, as President Bush and two major labor groups backed the deal.

"I do support it," Bush said.

He made the comment as he addressed Boeing’s ongoing troubles. The jet manufacturer has cut nearly 35,000 jobs in the past two years and seen sales of its commercial aircraft plunge.

"Boeing is going through a difficult period," Bush said. "We’re obviously working with Boeing on the construction of … airplanes, which should help the worker, help the economy."

Meanwhile, the AFL-CIO and International Association of Machinists and Aerospace Workers urged Congress to approve the leasing plan, which they said would support nearly 30,000 jobs in dozens of states. Many of the jobs already exist but would be at risk if the deal is not approved, the labor groups said.

The endorsements come as the proposed $21 billion deal faces increased scrutiny on Capitol Hill. At a hearing this month, Air Force officials were sharply criticized for the unusual leasing arrangement, which the Congressional Budget Office says could cost as much as $5.7 billion more than a conventional purchase.

Opponents also question the urgency of replacing the tankers, noting that a 2001 Air Force study found that the current fleet could last until 2040.

Senate Armed Services Committee Chairman John Warner, R-Va., has said the Pentagon should explore whether it would be better to lease 25 planes and buy the rest in a normal purchase.

Warner’s committee is the last of four congressional panels that must sign off on the tanker deal. The other three committees have already approved the plan. A spokesman for Warner said the Armed Services committee will not vote on the lease proposal until it receives an Air Force analysis of Warner’s suggestion about leasing a smaller number of planes.

Advocates of the deal say the Air Force urgently needs to replace its aging fleet of tankers. Many are more than 40 years old and require expensive maintenance to keep them flying.

The Air Force acknowledges that leasing would cost more than an outright purchase, but argues the extra expense is justified to get the tankers in the air sooner, without upfront investment that could hurt other programs.

Sen. Maria Cantwell, D-Wash., said the deal fulfills an important national security need "and guess what: It also creates jobs, and that’s important to keep in mind."

The planes would be built in Everett and modified in Wichita, Kan., but work by suppliers and subcontractors would be done throughout the country.

The leasing deal would directly or indirectly support more than 1,000 jobs in each of seven states, Cantwell said: Washington, Kansas, California, Texas, Michigan, Florida and Arizona.