WASHINGTON -- Air Force Secretary Dr. James G. Roche testified before the Senate Committee on Commerce, Science and Transportation on Sept. 3 to answer questions about the 2004 Air Force Tanker Lease Proposal.
The final defense committee hearing will be held Sept. 4, in the Senate Armed Services Committee. Testimony before the commerce committee was not required; however, committee chairman Sen. John McCain and other members used the forum to voice concerns over issues related to procurement methods and cost.
“It is considerably more expensive to lease rather than buy the aircraft, and, as (the Congressional Budget Office) stated in its report, ‘rather than eliminating difficult budgetary decisions, the lease merely postpones them,'” McCain argued.
Roche countered in a statement to the committee, saying, "Under the lease option, the Air Force can afford to field this new fleet of tankers at a quicker pace than under a traditional purchase plan.
“Jump-starting replacement of the older, less-capable tankers enables faster modernization of air expeditionary forces," Roche said. "The lease not only advances the first delivery by three years, it puts the 100-aircraft fleet at the disposal of our frontline commanders for combat operations by (2011), five years ahead of the planned purchase."
Roche said if the Air Force were to purchase these aircraft in a traditional buy on the same delivery schedule, while maintaining the financial top-line, the service would have to take billions of dollars out of other important programs.
While the committee session continued to focus on budgetary matters, questions also arose regarding the need for new tankers.
“Tanker dependence in recent wars and the advanced age of the nation’s air-refueling aircraft fleet drive the Air Force’s urgency to recapitalize as soon as possible,” Roche said.
According to Roche, the 44-year-old KC-135 Stratotanker supports 82 percent of combat air-refueling capability.
"Beginning manufacture under the Eisenhower administration, 732 KC-135s entered military service between 1957 and 1965," the secretary said. "The remaining 544 KC-135s on duty today have the oldest average fleet age of any Air Force combat aircraft, and the 'E' model is 44 years old, on average."
Roche said the ongoing war on terrorism heightens concerns regarding these aging aircraft.
"Our new ‘steady state’ includes tankers supporting fighters defending homeland as well as the need to maintain the nation’s global reach capability,” he said.
“I fully support this leasing alternative to provide the warfighters with new equipment as quickly as possible,” Roche concluded. “This leasing program supports the Air Force’s essential mission requirements that support the defense of America.”
The agreement provides for leasing 100 KC-767 aircraft from Boeing Co., for six years starting in 2006, at a lease price of $131 million plus an additional $7 million in lease-unique costs per aircraft. The total cost will be less than $16 billion. The initiative also includes a provision to purchase the aircraft for about $4 billion at the end of the lease in 2017.