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Tue, Apr 18, 2006

Pentagon Okays Tanker Competition

Boeing Vs. Airbus... Round 4,521

The Pentagon has started shopping for refueling tankers again... a process that will almost certainly put Boeing and Airbus in a head-to-head fly-off competition between the 767 (right) and the A330 tanker variants.

As you might remember, Boeing had the $23 billion deal all but in the bag a year ago... until a senior Air Force official and Boeing's chief financial officer went to prison in a scandal that nixed the lease-purchase arrangement. Congress even got into the act, demanding a more accountable procurement process.

The Air Force official, former weapons buyer Darleen Druyun, admitted to breaking federal conflict-of-interest laws by holding illegal job talks with Boeing. She served a nine-month prison term.

This time around, the Defense Department is being careful in stating it will take its time in determining which tanker best suits the needs of the Air Force -- and it will consider ALL options.

Recent studies "indicate that the department has sufficient time to structure a traditional competitive program to gain the best value for the taxpayer," Defense Department buyer Ken Krieg said in a memo obtained by CBS Marketwatch.

As far as the aircraft themselves are concerned... both tanker variants are already in service with air forces around the world. Italy and Japan are now flying the 767 tanker. The A330 -- which is converted to tanker duty by EADS and Northrop Grumman, flies for the UK and Australia (below).

The Air Force, of course, just wants a new tanker, period. It's existing fleet of 707-based KC-135s are around 45 years old... but they're still flying, and will continue to do so until replacements are ready.

FMI: www.boeing.com, www.airbus.com, www.af.mil

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