International Air Systems Submits Proposal To Air Force

International Air Systems, Inc. of Elk Grove Village (IL) says it has submitted a proposal to the Air Force for the recapitalization of the KC-135. This proposal provides for 100 new air-refueling tanker/transport aircraft using a "Private Financing Initiative" method for the funding of the aircraft and a "Contract Air Refueling" service to provide air mobility support to the Air Force in the form of air-refueling and/or airlift operations.

The first phase of the proposal calls for delivery of 100 tankers to the Air Force. The price tag is between $1.8 billion and $2.2 billion through the first 10 years of service. That includes 30,000 hours of flying time for air mobility support along with the required logistical and maintenance support. Additional services to the Air Force are included in the proposal. The proposal offered to the Air Force provides a developed plan for the full recapitalization of the KC-135 fleet at a considerable cost savings compared to leasing or purchasing of new aircraft.

IAS says its proposal compares "very favorably" to the controversial proposal put forth by Boeing to lease a hundred 767 tankers. Boeing's proposal is estimated to cost the Air Force approximately $35B over the 10 year period. IAS' proposal compared to Boeing's proposal would provide the Air Force with a $15B cost savings over the 10 years with additional cost savings of $4.0B occurring from the reduction of current military air refueling operations and infrastructure. Many additional benefits to the DOD and our nation can be derived from IAS' plan to recapitalize the KC-135 fleet.

IAS says its plans are based on new Boeing aircraft using a mixed fleet approach, which better meets the needs of the DOD's air refueling requirements. These aircraft will be fully equipped and capable to meet the Air Force's Operational Requirements Document for air refueling. The plan proposed provides for worldwide capabilities and integrates with existing military operations to meet wartime or contingency operations.

The proposal that IAS has submitted to the Air Force also suggests that there are various options that will:

• provide immediate cost savings in KC-135 operations
• provide new tankers more quickly as research and development of the mixed fleet aircraft under IAS' proposal occurs
• an option to increase the Air Force's airlift capabilities through the private acquisition of C-17 aircraft in a parallel program.

FMI: www.af.mil