Boeing gets Air Force deal for 100 jets

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Boeing gets Air Force deal for 100 jets

WASHINGTON (AP) =97 The Pentagon has approved an Air Force plan to lease 100=
=20
modified 767 jetliners from Boeing (BA) for use as refueling tankers,=20
members of Congress said Friday.  The controversial plan has undergone=20
repeated delays, but supporters in Congress kept up pressure on the=20
Pentagon. "I am very pleased the Department of Defense approved the 767=20
tankers lease," said Sen. Pat Roberts, R-Kan., chairman of the Senate=20
Intelligence Committee. "I've worked for more than a year with the Air=20
Force and the department to see that this decision was reached."  Critics=20
have called the estimated $17 billion price tag too high and complained=20
about the unusual structure of the deal, which calls for leasing the planes=
=20
rather than buying them outright.  Supporters say the lease arrangement=20
would allow the Air Force to take delivery of the planes sooner and with=20
less upfront costs, but critics say the plan could cost more money over=
 time.

The Pentagon said Boeing can build the tankers for about $131 million each,=
=20
Roberts said. The Air Force would be able to buy the planes after six years=
=20
for an estimated $4 billion.  The plan has strong support in Congress=20
because of the approximately 2,300 jobs it would bring to Boeing.  The=20
tankers' 767 airframes would be built at Boeing's plant in Everett, Wash.,=
=20
about 25 miles north of Seattle. Other work on the military modifications=20
would be done at Boeing's Wichita, plant.  The Pentagon planned to release=
=20
more details of the deal Friday afternoon.  Sen. Maria Cantwell, D-Wash.,=20
said the deal would be a major boost for the depressed economy of the=20
Seattle area.  "It's a big victory for our state's economy and will deliver=
=20
a sustained boost for Boeing's production lines and its workers at a time=20
when they need it most," said Cantwell. "The men and women who serve our=20
nation in the Air Force need and deserve the best equipment available, and=
=20
the Boeing 767 tanker is a best-of-breed technology."  The tankers are=20
intended to replace more than 500 KC-135's that are over 40 years old.


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