KC-X deferred 5 years, NGB cancelled

http://www.cqpolitics.com/wmspage.cfm?parm1=5&docID=news-000003070256

The White House has given the Pentagon guidance to delay procurement of aerial refueling tankers by five years and cancel plans for a new long-range bomber, according to three sources close to the discussions

in the end, this can only be good news for EADS as by then they will have the KC-30 and the advanced boom (ARBS) in service, removing a major risk component from the competition

by contrast, Boeing is unlikely to further advance the KC-767Adv on their own dime and thus will still be high risk in 5 years

not mention, how long can Boeing keep the 767 line open? 5 years is a long time, and that is just till the start of competition, by the time the competition has finished and all the protests have been completed, it could easily be 7-8 years before the first plane is ordered

while i don’t have first hand knowledge, it has been repeatedly said that the 787 is simply unsuitable for conversion to a tanker

if that is the case, that leaves Boeing to sell the bigger and more costly 777, letting EADS play the ‘right-sized’ argument :diablo:

No final decisions have been made, and the recommendations are part of negotiations between the Office of Management and Budget and the Defense Department over possible budget trade-offs this year, the sources said. The guidance represents two of the offset options that OMB gave the Pentagon last month regarding the fiscal 2010 Defense budget request.

ok, it’s not final yet, but i think it has a good chance of sticking