Decision postponed on Boeing tanker deal

By Matthew Daly
Associated Press

WASHINGTON — Defense Secretary Donald H. Rumsfeld is delaying for at least six months a decision on an Air Force plan to acquire 100 Boeing 767s for use as refueling tankers.

The delay announced yesterday will give officials time to complete two additional studies Rumsfeld has ordered to review the deal, which has drawn criticism from members of Congress and others as tilted in Boeing Co.'s favor.

Rumsfeld said the new studies will include a comprehensive look at other refueling options.

The decision was based in part on recommendations made by the Defense Science Board, which submitted a report critical of the tanker deal earlier this month.

The report by the advisory panel said there is no compelling reason for the Air Force to immediately acquire new refueling tankers. Contrary to Air Force claims, corrosion of the aging KC-135 tanker fleet is "manageable" and several options exist to refurbish the fleet, the report said.

That review followed another study released last month by the Pentagon's inspector general, who concluded the Pentagon should not move forward on the $23.5 billion plan until significant changes are made in the deal's terms and cost.

Rumsfeld's announcement was welcomed by both supporters and opponents of the tanker deal.

Supporters said it quashed rumors that the plan would be scrapped, while critics said the additional reviews should give officials more time to fix what they called a one-sided contract.

A spokesman for Chicago-based Boeing said the company believes the two new studies are important.

One study will address whether new tankers are needed, while the other will examine several refueling options.

"We firmly believe that the 767 tanker is the only solution that fulfills all 26 of the Air Force's stated requirements" for its refueling program, Boeing spokesman Doug Kennett said in a statement.