Air Force to Resume Buying Aerial-Refueling Tankers

The Air Force can resume buying aerial-refueling planes in a new program that replaces a contract killed by Congress in May 2004, according to a summary of a directive from the Pentagon’s top weapons official.

Ken Krieg, the Defense Department’s weapons buying chief, ordered the Air Force on Thursday to “begin the requirements and acquisition process for tanker recapitalization,” according to a document provided by the Pentagon.

The Air Force is expected as early as Monday to start a competition that’s likely to pit Chicago-based Boeing Co. against a team of Northrop Grumman Corp. and European Aeronautic Defense & Space Co., Europe’s biggest aerospace firm, Air Force spokesman Doug Karas said.

Under the original, $23-billion program for buying aerial-refueling tankers, the Air Force was to lease and then buy as many as 100 Boeing 767 tankers. Congress killed the contract in the wake of a conflict-of-interest scandal that led to prison sentences for Darleen Druyun, a former Air Force acquisition official, and former Boeing Chief Financial Officer Michael Sears.

A revamped program was delayed pending a Rand Corp. analysis of alternatives. Rand’s study said commercial transports built by Boeing and Airbus were the most cost-effective candidates for conversion to aerial-refueling tankers.

Boeing and Airbus parent EADS are the only two makers of passenger aircraft large enough to be converted into tankers.

EADS said in September that it would team with Century City-based Northrop Grumman. EADS would supply the aircraft to be outfitted in the U.S., where Northrop Grumman would manage the program.