PETER LA FRANCHI / CANBERRA & PAUL LEWIS / WASHINGTON DC Manufacturer set to exploit Australian desire to avoid lengthy military equipment tenders

Boeing is proposing a fast-track approach to replace the Royal Australian Air Force's in-flight refuelling tankers. The deal would leverage off the US Air Force's planned lease of 100 767-200 tankers, which Washington is expected to forward for US Congress approval early next year.

Last week, Boeing presented formal proposals to Australian defence minister Robert Hill and undersecretary for defence acquisition Michael Roche. The US Company is looking to capitalise on a perceived Australian willingness to avoid lengthy tenders for new military equipment in the wake of its recent snap selection of the Lockheed Martin F-35 Joint Strike Fighter. Boeing says only that "we intend responding to the Australian tanker requirement".

A draft request for tenders was released in late October for up to five tankers to replace the RAAF's four remaining Boeing 707-320Cs. A formal competition is planned to start in January, with selection expected by mid-2003. Scheduled in-service date is December 2006, around the same time the leased USAF 767s would begin delivery.

The US government is waiting for the start of the next Congressional session in early January before forwarding the proposed $18 billion, 10-year deal for a 30-day, final-approval process by House and Senate appropriations and armed services committees. Boeing is understood to have private financing in-place to start work almost immediately on the first tankers. The USAF would not begin lease payments before 2006.

Airbus is lobbying in support of an A330-based RAAF bid in concert with local EADS subsidiary Australian Aerospace. Airbus representatives held meetings with officials last week, including the chief of the RAAF Air Marshal Angus Houston. Airbus says it is stressing the importance of competition and a technically compliant three-point tanker solution.

Boeing officials have denied suggestions that modifying the 767-200 to mount underwing- mounted probe-and-drogue pods presents a challenge. The baseline spiral one tanker for the USAF will have a centreline boom and hose drum unit (HDU), which will be followed by a spiral two version with two underwing HDUs.

Italy and Japan, which have ordered 767 tankers, have also specified underwing refuelling pods.

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Source: Flight International