Originally published April 12, 2007 at 12:00 AM | Page modified April 12, 2007 at 2:02 AM
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ShareBoeing submits Air Force tanker proposal
Boeing on Wednesday filed its 7,000-page proposal to build a U.S. Air Force aerial-refueling plane, a contract valued at as much as $40...
Bloomberg News
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The landscape of central Kansas provides the background for Italy's KC-767 aerial tanker as it conducts flight-test operations. The company expects to deliver it to Italy later this year.
Company says 9,000 jobs and $400 million
at stake for Washington state
A troubled history: Boeing has already invested more than $1 billion in its 767 tanker program, which in late 2001 initially won congressional go-ahead for a plan to replace the Air Force fleet of aging 707-based air-to-air refueling tankers. That deal was struck down in 2004 after a procurement scandal.
Now up for re-bid, the 767 must beat a competing tanker offered by Northrop Grumman and Airbus parent company European Aeronautic, Defence & Space (EADS). The Northrop/EADS tanker is based on the Airbus A330, a larger and newer jet than the 767.
Big potential: The Air Force plans to eventually buy at least 179 tankers from the winner of the initial contract, estimated to be worth up to $40 billion over 15 years. But to replace the entire fleet of more than 500 old KC-135 tankers, orders for hundreds more new tankers will follow later. And the U.S. decision could prompt foreign orders, too. Total orders will likely top $100 billion.
Jobs at stake: Boeing says the tanker program will provide 44,000 U.S. jobs, including those at some 300 suppliers including Pratt & Whitney, Spirit AeroSystems and Vought.
In Washington state, the company estimates that the program will support approximately 9,000 total jobs — at Boeing and its suppliers — and would have an estimated $400 million in annual economic impact. The 767 work force in Everett has slimmed down to around 600, according to internal Boeing documents previously reported by The Seattle Times. That would likely rise to several thousand if Boeing were to win the contract.
The airplane: Boeing's tanker is a modified 767-200 freighter. It will have an advanced commercial digital flight deck and three systems for refueling aircraft: a fly-by-wire rigid boom, a flexible hose and wing pods. The plane will also have capacity for military cargo, troops, patients and medical crew.
New manufacturing approach: Boeing has already built similar tankers for the Italian and Japanese air forces. But the proposal for the U.S. Air Force is different, in that the U.S. tankers would be modified on the Everett production line rather than in Wichita, Kan. Intended to reduce the cost to the government, that approach will provide more jobs in this region. Workers in Wichita will still install the military refueling systems and support the flight tests.
Source: Boeing
— Dominic Gates
Boeing on Wednesday filed its 7,000-page proposal to build a U.S. Air Force aerial-refueling plane, a contract valued at as much as $40 billion over 15 years.
The KC-767, based on a Boeing commercial airliner, would be produced on Boeing's commercial-assembly line in Everett.
Boeing's tanker will compete with an aircraft built by Northrop Grumman and European Aeronautic, Defence & Space. That team submitted its proposal yesterday, two days ahead of the deadline.
Boeing's tanker bid
Company says 9,000 jobs and $400 million
at stake for Washington state
A troubled history: Boeing has already invested more than $1 billion in its 767 tanker program, which in late 2001 initially won congressional go-ahead for a plan to replace the Air Force fleet of aging 707-based air-to-air refueling tankers. That deal was struck down in 2004 after a procurement scandal.
Now up for re-bid, the 767 must beat a competing tanker offered by Northrop Grumman and Airbus parent company European Aeronautic, Defence & Space (EADS). The Northrop/EADS tanker is based on the Airbus A330, a larger and newer jet than the 767.
Big potential: The Air Force plans to eventually buy at least 179 tankers from the winner of the initial contract, estimated to be worth up to $40 billion over 15 years. But to replace the entire fleet of more than 500 old KC-135 tankers, orders for hundreds more new tankers will follow later. And the U.S. decision could prompt foreign orders, too. Total orders will likely top $100 billion.
Jobs at stake: Boeing says the tanker program will provide 44,000 U.S. jobs, including those at some 300 suppliers including Pratt & Whitney, Spirit AeroSystems and Vought.
In Washington state, the company estimates that the program will support approximately 9,000 total jobs — at Boeing and its suppliers — and would have an estimated $400 million in annual economic impact. The 767 work force in Everett has slimmed down to around 600, according to internal Boeing documents previously reported by The Seattle Times. That would likely rise to several thousand if Boeing were to win the contract.
The airplane: Boeing's tanker is a modified 767-200 freighter. It will have an advanced commercial digital flight deck and three systems for refueling aircraft: a fly-by-wire rigid boom, a flexible hose and wing pods. The plane will also have capacity for military cargo, troops, patients and medical crew.
New manufacturing approach: Boeing has already built similar tankers for the Italian and Japanese air forces. But the proposal for the U.S. Air Force is different, in that the U.S. tankers would be modified on the Everett production line rather than in Wichita, Kan. Intended to reduce the cost to the government, that approach will provide more jobs in this region. Workers in Wichita will still install the military refueling systems and support the flight tests.
Source: Boeing
— Dominic Gates
The Air Force plans to buy 179 tankers to replace its Boeing-built KC-135 fleet, which has planes 44 years old on average.
In Washington state, the company estimates, a successful tanker bid would support approximately 9,000 jobs at Boeing and its suppliers. The annual economic impact would be an estimated $400 million. The 767 work force in Everett has slimmed down to around 600, according to internal Boeing documents previously reported by The Seattle Times. That figure would likely rise to several thousand if Boeing were to win the contract.
In 2004, a potential $23 billion award to Boeing was stripped from the company after the Air Force's No. 2 procurement official and Boeing's ex-chief financial officer were convicted of violating conflict-of-interest laws.
Boeing's tanker is an advanced version of the 767-200 Long-Range Freighter capable of refueling, flying cargo and passengers, and acting as a medical transport, Boeing said Wednesday.
The Air Force is budgeting $13.9 billion to buy as many as 48 of the aircraft by the end of 2013. The service calls the program its top acquisition priority.
Boeing's team includes Smiths Group; Rockwell Collins; Vought Aircraft Industries; Honeywell International, N.J.; and Spirit AeroSystems Holdings in Wichita, Kan. Northrop, the third-largest U.S. defense contractor, and EADS announced a team in September 2005 to bid for the so-called KC-X contract in an effort to break Boeing's 75-year monopoly on supplying fueling tankers to the U.S. military.
Northrop is leading a team that is offering the KC-30 tanker. EADS would supply the A330-200 aircraft, made by its Airbus SAS division, to be refitted with tanker equipment in Mobile, Ala.
EADS has contracts for similar tankers from Australia, the U.K. and the United Arab Emirates.
Boeing's tanker has been sold to the air forces of Japan and Italy and has more than 1,000 hours of flight testing completed. The Boeing tankers begin delivery this year.
Seattle Times aerospace reporter Dominic Gates provided information on Washington state economic impact.
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