Adding the long range capability to the offer portfolio
11:15 GMT, June 22, 2009 During the recent Paris Air Show 2009 Boeing has hit the news with a new strategy presentation for the pending US tanker bid. This new strategy is primarily based on a change of the tanker platform: Boeing is considering to give new momentum to the race for the much desired contract award by offering its larger 777 platform along with the 767 of the prior contests. This was acknowledged by Jim McNerney, CEO of Boeing, at the beginning of this year’s Paris Air Show.
The US tanker bid, scheduling the procurement of 179 tankers worth some $35 billion to replace the aging Air Force fleet of aerial refuelling aircraft, preoccupies the aerospace industry, the political decision-makers and the media since quite a time. Back in 2001, Boeing had been awarded the first Air Force tanker contract, which was afterwards cancelled due to an acquisition scandal. In February 2008, a team of EADS and its US partner Northrop Grumman won the much discussed second contest with their A330 tanker. However, this deal was cancelled by Defense Secretary Robert Gates in late 2008 after Boeing protested the procurement process as unfair and the Government Accountability Office (GAO) decided in favour of the Seattle based company.
Now, Gates plans to restart the process in the course of the following weeks. The request for proposals will most likely be issued by midsummer 2010 and will show up new requirements and procedures for the contest. According to UPI, the contract is expected to balloon to more than twice the initial size with fresh orders for tankers in the future. It had also been discussed in Washington and suggested by several veteran lawmakers to split the contract between Boeing and Northrop Grumman-EADS. Yet, this alternative was explicitly dismissed by Gates saying that a split contract would be “bad public policy and bad acquisition policy” as well as “a bad deal for taxpayers.”
Bigger, better, faster?
By offering a tanker on the basis of the commercial 777 jet, Boeing aims at improving its bidding position in view of the Airbus A330 MRTT being larger than the 767. The 777 capacity significantly surpasses the A330’s. According to Boeing’s spokesman William Barksdale the aircraft “definitely, is much more capable than the A330.” Dave Bowman, Boeing vice president of tanker programmes, confidently states: "We're ready to build America's next tanker in whatever configuration and to whatever requirements the [US government] desires."
McNerney revealed that Boeing will not leave the field to the EADS/Northrop Grumman team without a struggle. If necessary, the company’s CEO says, Boeing could develop a new aircraft from scratch which would then be available as of 2016. If the US Government will accept such long waiting periods for its new system remains to be seen. Even before, Airbus could offer its newly developed long-range A350 jet aircraft, which could be completed by 2013, according to the company.
Boeing’s 777 could, however, encounter problems on different nature: the production of the military version could come into conflict with national security regulations. As the construction of military equipment must be conducted in secured settings, part of the production of the commercial and military aircraft would need to be carried out in separated buildings. Furthermore, according to different sources, several defence specialists doubt that Boeing will be able to redesign the project in such a short term.
Also at the Paris Air Show, Northrop Grumman and EADS reaffirmed their commitment to the KC-45 tanker. In a joint statement Ronald D. Sugar, chairman and CEO of Northrop Grumman and Louis Gallois, CEO of EADS said: “The KC-45 was previously selected because of its superior operational capability, lower risk and greater cost competitiveness. We have continued to strengthen our offering and look forward to working closely with the U.S. Department of Defense and U.S. Air Force to ensure that the upcoming competition will provide the warfighter with the most capable, best value tanker available.” (see: http://www.defpro.com/news/details/8114/)
Nicolas von Kospoth
