Discussed Tanker Deal, Among Other Things

With the 767 tanker program in trouble and the Wichita plant's future uncertain, members of Kansas' congressional delegation met Wednesday with Boeing chief executive Harry Stonecipher. And they have questions.

"The tanker program -- that's the primo question," Rep. Todd Tiahrt, R-Goddard, told the Wichita Eagle. The subject was top on his list before meeting with Stonecipher (pictured) in Sen. Pat Roberts' Capitol Hill office. "I'm also concerned about the 767 line shutting down, whether he's reviewed any plans for the sale of Boeing Wichita, what other programs and contracts Boeing might be active on," Tiahrt said. "We have to get things going."

Stonecipher's visit with Tiahrt, Roberts, Sen. Sam Brownback and Rep. Jerry Moran, R-Hays, is his first since taking over for ousted chief executive Phil Condit in December. The meeting was promised in January, after a rumored sale of Boeing Wichita prompted a hastily arranged conference call in which Stonecipher reassured lawmakers that the plant wasn't for sale -- right now. Since then, the sale rumors have died down while the tanker tribulation continues. Two stock analysts reported last week that the deal -- in which the Air Force would buy and/or lease 100 Boeing 767s for use as refueling tankers -- is likely to experience limbo, if not death, over the next several months.

On Monday, Sen. Ted Stevens, R-Alaska, a leading tanker supporter, said the program is "in jeopardy." Boeing has said the 767 tanker program would create about 1,000 jobs in Wichita. The proposed Air Force KC-767 is essentially a dead plane walking, but supporters don't want to admit it, said tanker-watcher and critic Danielle Bryan of the Project on Government Oversight in Washington, D.C.

"It's sad," she told the newspaper. "People in Wichita are hearing, 'Wait a few months,' but once lawmakers are through another election, then you'll hear the bad news." Tiahrt disagrees with that characterization. He said "two stubborn facts" remain in the program's favor: The Air Force needs new tankers soon, and the 767 is the best platform to use.

Connected to the tanker uncertainty is concern over the 767 line itself. The same analyst reports that were skeptical about the program expressed concern over the viability of the 767 line without it. Part of the 767 is manufactured in Wichita. With only 25 orders for 767s on backlog -- compared with 824 orders for the 737 -- a tanker delay would make the 767 less viable. "Absence of tanker enhances chance the 767 line will have to be closed," wrote Morgan Stanley analyst Heidi Wood in her report last week. Tiahrt also said prompt approval of the tanker program is crucial to the survival of the 767 commercial line. But if the tanker -- and the commercial 767 -- doesn't survive, Tiahrt said Boeing needs to pursue other ways to bring jobs to Wichita.

Beyond the specific program questions is the larger issue of the company's continued presence in Kansas. Moran said he's interested in knowing Boeing's long-term plans for the state, and what the delegation can do to assure the company's future. The company is a prime driver of the state's economy, even in Moran's primarily rural district in western Kansas.

"The First District has a number of companies that contract to Boeing, and I have a number of Boeing workers in my district," he said. "As far as tax revenues for government, as far as the economic impact statewide, Boeing's future is a huge issue for the state."

FMI: www.boeing.com