Air Force Touts Boeing Lease Despite Costs

A controversial U.S. plan to rent, rather than buy, 100 tanker aircraft from Boeing Co. could cost as much as $1.9 billion more than a straight purchase, the Air Force told Congress.

The proposed $17.2-billion lease would put all 100 aircraft into service by 2011, five years sooner than if acquired in a traditional purchase on the same delivery schedule, Air Force Secretary James Roche said.

Otherwise the up-front costs would require taking billions of dollars out of other programs, he said in a report to lawmakers. “The adverse impact to our combat capability would be traumatic,” he said.

It would be one of the biggest and most unusual military programs in years. Major weapons systems always have been purchased, not leased, by the military.

Shares of Chicago-based Boeing rose 49 cents to $35.18 on the NYSE.