T1bubba
Well-known member
- Joined
- Nov 26, 2001
- Posts
- 317
Looks like the House and Senate agreed on the lease plan.
T1bubba
Boeing wins Air Force deal for 767 tankers
Wednesday, December 19, 2001
By CHARLES POPE
SEATTLE POST-INTELLIGENCER WASHINGTON CORRESPONDENT
WASHINGTON -- Congressional negotiators yesterday delivered a $22 billion gift to The Boeing Co. and its beleaguered work force, requiring the Air Force to lease 100 Boeing 767s that will be converted into midair tankers.
The tanker conversion project, derided by critics as a government-sponsored bailout for Boeing, emerged as a top priority for Washington state lawmakers in the wake of the Sept. 11 terrorist attacks.
The attacks sent Boeing's fortunes -- and its commercial airline business -- spiraling downward and led to the company announcing it would lay off 30,000 workers.
With the agreement by House and Senate negotiators, the legislation is virtually assured of passing and being signed into law. The agreement, said Sen. Maria Cantwell, D-Wash., "all but guarantees final passage later this week."
The deal will save about 2,500 jobs at Boeing's Everett plant and create a total of 17,000 indirect jobs over the 10-year term of the lease.
Most of those jobs will be in the Puget Sound region, which is mired in one of the worst recessions in the nation and is in dire need of some economic good news. The first planes are expected to be delivered in 2003.
Rep. Norm Dicks, D-Wash., who was a prime advocate for the provision in the House, said the final deal exceeded his expectations. He also defended it against critics who said it was a bailout.
"You never can justify these kinds of things on jobs," Dicks said. "There has to be a strong national security basis to support it."
Replacing the tanker fleet is one of the Air Force's highest priorities. Dicks said the tanker program could eventually lead to Boeing planes replacing the entire fleet of 400 aging planes now used by the Air Force for surveillance, refueling and other tactical missions.
The Boeing program is part of a $318 billion defense-spending bill that is a high priority given the worldwide campaign against terrorism and the war in Afghanistan.
The deal reached yesterday by negotiators for the House and Senate calls for the Air Force to lease 100 wide-body 767s over 10 years. Boeing would then have the option of taking the planes back and reselling them at a relatively young age.
The negotiators also provided money for the Air Force and Navy to buy four of Boeing's smaller 737 jets for use as executive passenger planes for high-ranking government and military officials.
A Boeing spokeswoman declined comment, but the agreement generated bright smiles by Dicks and Washington's two senators, Patty Murray and Cantwell.
"This is an amazing moment," said Murray, noting that few believed they would succeed in pushing a lease arrangement through Congress. Dicks said leasing the planes was the only option because there wasn't enough money in the budget to buy the planes. He added that getting the new planes would save $5.9 billion that is needed to refurbish and add new engines to the existing fleet.
"I'd rather spend it on leasing new planes than spending it on old planes that still will be 43 years old when you fix them up," Dicks said.
"The thing that convinced (House and Senate conferees) was, we need the tankers. Every single member there understood that these tankers were essential for national security. They finally understood this was the only way we could do it."
T1bubba
Boeing wins Air Force deal for 767 tankers
Wednesday, December 19, 2001
By CHARLES POPE
SEATTLE POST-INTELLIGENCER WASHINGTON CORRESPONDENT
WASHINGTON -- Congressional negotiators yesterday delivered a $22 billion gift to The Boeing Co. and its beleaguered work force, requiring the Air Force to lease 100 Boeing 767s that will be converted into midair tankers.
The tanker conversion project, derided by critics as a government-sponsored bailout for Boeing, emerged as a top priority for Washington state lawmakers in the wake of the Sept. 11 terrorist attacks.
The attacks sent Boeing's fortunes -- and its commercial airline business -- spiraling downward and led to the company announcing it would lay off 30,000 workers.
With the agreement by House and Senate negotiators, the legislation is virtually assured of passing and being signed into law. The agreement, said Sen. Maria Cantwell, D-Wash., "all but guarantees final passage later this week."
The deal will save about 2,500 jobs at Boeing's Everett plant and create a total of 17,000 indirect jobs over the 10-year term of the lease.
Most of those jobs will be in the Puget Sound region, which is mired in one of the worst recessions in the nation and is in dire need of some economic good news. The first planes are expected to be delivered in 2003.
Rep. Norm Dicks, D-Wash., who was a prime advocate for the provision in the House, said the final deal exceeded his expectations. He also defended it against critics who said it was a bailout.
"You never can justify these kinds of things on jobs," Dicks said. "There has to be a strong national security basis to support it."
Replacing the tanker fleet is one of the Air Force's highest priorities. Dicks said the tanker program could eventually lead to Boeing planes replacing the entire fleet of 400 aging planes now used by the Air Force for surveillance, refueling and other tactical missions.
The Boeing program is part of a $318 billion defense-spending bill that is a high priority given the worldwide campaign against terrorism and the war in Afghanistan.
The deal reached yesterday by negotiators for the House and Senate calls for the Air Force to lease 100 wide-body 767s over 10 years. Boeing would then have the option of taking the planes back and reselling them at a relatively young age.
The negotiators also provided money for the Air Force and Navy to buy four of Boeing's smaller 737 jets for use as executive passenger planes for high-ranking government and military officials.
A Boeing spokeswoman declined comment, but the agreement generated bright smiles by Dicks and Washington's two senators, Patty Murray and Cantwell.
"This is an amazing moment," said Murray, noting that few believed they would succeed in pushing a lease arrangement through Congress. Dicks said leasing the planes was the only option because there wasn't enough money in the budget to buy the planes. He added that getting the new planes would save $5.9 billion that is needed to refurbish and add new engines to the existing fleet.
"I'd rather spend it on leasing new planes than spending it on old planes that still will be 43 years old when you fix them up," Dicks said.
"The thing that convinced (House and Senate conferees) was, we need the tankers. Every single member there understood that these tankers were essential for national security. They finally understood this was the only way we could do it."
