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Boeing & USAF: The Plot Thickens!
By: Zacks Investment Research   Thursday, June 18, 2009 4:14 PM

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Boeing and the USAF Tanker Program: The Plot Thickens!

Boeing (BA) apparently is considering proposing on the upcoming USAF Tanker Program re-bid with versions of two of its models -- the 767 and the 777 -- in the hopes that one of them will be selected over the single Northrop Grumman (NOC)/Airbus A330-based submittal. The following is provided for those of you interested in the specifications -- and the differences -- between the three aircraft (for the Boeing 777-based version, we have used data for the 777 Freighter as being probably closest to the final configuration):



In case you've forgotten, the current KC-767 has no cargo capacity, as it is solely an aerial-refueling tanker, which is what Boeing may have thought USAF wanted during the last tanker tussle. Instead, USAF picked a version of the A330 MRTT -- an aircraft with cargo capability -- which means it can also be configured as a troop carrier, which may be one of the reasons USAF doesn't want any more C-17s.

It's all becoming clearer now: if you're not going to buy KC-767s and you're not going to procure more C-17s, the least USAF can do is buy KC-777s. Not only that, but Boeing reportedly is thinking about producing the KC-777 aerial tanker in Everett, which would make most of us living in Western Washington State a bit happier than even the last thirty days without rain have done.

If you take a look at the specifications, you will notice that the A330 MRTT is sandwiched in between the KC-767 and KC-777. However, if USAF wants a multipurpose aircraft with the most capability, the KC-777 is quite possibly the aircraft of choice.

In any event, the re-bid is a happening thing, and we may soon know if U.S. commercial aircraft production will continue to be centered in the Pacific Northwest or will begin to shift to the Gulf Coast -- for if the A330 MRTT wins, it will be completed in Mobile, Alabama...and once Airbus has a toe-hold in the USA, there's no telling what comes next.

Incidentally, USAF's version of the A330 MRTT was ultimately dubbed the KC-45, so as to not confuse it with anyone else's A330 MRTT tankers.

Let the bidding begin!

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The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
  
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