Tanker News 23 July

The following tanker related items caught our eye:

Denver Post: Boeing to Display KC-767 Tanker Demonstrator
Key Passage:

The Boeing Company will display its KC-767 Advanced Tanker technology Demonstrator from 9 a.m. to 4 p.m. Mountain time on July 23 and 24 at the American GI Forum National Conference in Denver to showcase why the KC-767 is the best aircraft for the U.S. Air Force's KC-X aerial refueling program.

The tanker ground game continues on as Boeing builds grassroots support for their tanker by touring organization conferences across the country.

Washington Post: The McCain Budget Plan
Key passage:

Balance the budget requires slowing outlay growth to 2.4 percent...The roughly $470 billion dollars (by 2013) in slower spending growth come from reduced deployments abroad ($150 billion; consistent with success in Iraq/Afghanistan that permits deployments to be cut by half -- hopefully more), slower discretionary spending in non-defense and Pentagon procurements ($160 billion; there are lots of procurements -- airborne laser, Globemaster, Future Combat System -- that should be ended ...

So the campaign's senior economic adviser, Douglas Holtz-Eakin names three Pentagon procurements that should be cut and guess what? They are all Boeing programs. Coincidence or more grist for the temper and grudge rumor mill?

KC-30 Press Release:Tanker Boom Completes In-flight Contact
Key passage:

The test mission fulfilled several key flight and program milestones for the KC-45's all-electric, fly-by-wire Aerial Refueling Boom System, including sustaining one of the tanker-to-receiver aircraft contacts to simulate large offloads. The continued successful testing of the ARBS is further indication of the boom system's maturity and readiness for the U.S. Air Force's next generation KC-45 Tanker.

One observation and several questions are in order: 1) It looks like the Air Force is going to have to pry the KC-45 designation from the EADS crew's cold, dead hands. They seem to have grown quite fond of improperly referring to themselves as the KC-45. 2) If we are to believe the KC-30 hype that it is ready now, then why do they keep announcing all these new tests? 3) Is that not an A310 based tanker in the photo and not an A330 tanker like they are trying to sell to the US Air Force? 4) How much outside EU nation support is EADS getting free of charge? There is a stop work on the US tanker work. And, since Australia is not a NATO country, we know they are not supporting this testing with their military aircraft. So who is footing the bill? Or, is this another type of government subsidy beyond the Airbus ones being protested at the WTO or the Katrina bonds that were funneled to them?

KC-30 Ground Game Revs Up

In a previous post we highlighted some of Boeing's grassroots mobilization or "ground game" activities in preparation for the GAO tanker contract decision.

The KC-30 team has also been actively organizing on the ground in addition to their efforts on the web at ComeBacktoMobile.com. (We readily admit that its a nice website and tip our hat to their efforts.)

Alabama station WALA Channel 10 interviewed Mobile County Commissioner Steve Nodine and several other local business leaders in its report on pre-GAO decision actions:

Mobile Chamber of Commerce President Win Hallett placed his opinion in the mix, as well. "Well we're always anxious until it's finalized, but we think this is an opportunity to re-win what we've already won. And, we are excited about that," he said.

Still, it might not be the end of what has been a long fight.

"We need political support obviously as we go down the road we have to make sure Congress doesn't toy around with and lifts the stop work order currently in place," said Nodine.

Tuesday, some of that help was demonstrated when a new political support network was announced. Local leaders in Mobile County have formed the Gulf Coast Aerospace Coalition in response to Boeing's challenges.

The network, founded by local leaders, includes 50 cities and counties in the Southern United States, stretching geographically from New Orleans, Louisiana, in the West to Tallahassee, Florida, in the East.

The Mobile Chamber of Commerce has been doing everything that it can to secure support for the city, as well. The organization has "been in touch with our allies all over who have something as stake in this project," said Hallett.

Contrary to most people's perception, political grassroots mobilization is expensive. But, if the GAO decision is not definitive either way, each side will spend as much as needed to get their supporters (voters) to demand action from elected officials. Given that this is an election year, the pressure will definitely be on Congressional offices to do something for their state's/district's economy.

Next Up: The Tanker Ground Game

In every political campaign there comes a time when the ground game, or the ability to get more of your supporters out pressing your message, plays a decisive role.

In the Air Force tanker contract dispute, now is the time for both the KC-30 team/EADS and Boeing to finalize their ground games. With the Government Accountability Office (GAO) to rule on Boeing's protest by June 19th and the World Trade Organization (WTO) possibly also ruling this month on the US complaint of Airbus subsidies; each side must build their coalition now in order to take advantage of a favorable ruling or withstand a possible setback.

The KC-30 team has a much stronger political right now and has mainly stuck to holding employee rallies, astroturfing in the form of taxpayer groups, and coordinated letters written by military officers who are current/former employees. They also have a fairly decent "war room" that sends out e-mail updates to supporters.

For Boeing though, because it faces a much harder task of possibly getting the decision reversed in Congress if the GAO does not rule favorable, it must build support on the ground in key states and congressional districts beyond tanker employment areas. This article yesterday caught our eye as it shows the efforts being taken in West Virginia who's Senior Senator, Robert Byrd, is President pro tempore of the Senate and Chairman of the Senate Appropriations Committee.

Since the move to reduce or overturn the tanker contract will probably come from the appropriations bills, having a West Virginia ground game will extremely important for Boeing.

The article points to a number of veterans who have written in protest to the Air Force or their elected officials including:

West Virginia’s best-known veteran, Hershel “Woody”Williams, sent the Air Force a letter of protest.

“As a Marine who served in Iwo Jima during World War II, it boils my blood every time I see an American flag labeled ‘Made in China,’” the Medal of Honor winner from Ona wrote.

“So I am even more dismayed that the Pentagon has chosen a foreign country to make military planes over a good American company. I hope this decision is reversed and that the Defense Department will put American interests first in equipping our armed forces in the future.”

The Air Force selection of an Airbus based tanker has stirred up some strong feelings in West Virgina and the rest of America. How those feelings are turned into constructive action and political power will play a key role in how the tanker decision plays out in the aftermath of the GAO and WTO rulings.