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Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
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Fri, Apr 18, 2008

Pentagon Plans Big Sell-Off Of Aviation History

Scrapped Planes More Valuable As Scrap Metal

If you've ever wondered what would eventually become of the more than 4,000 old aircraft hulls sitting in the US military's boneyard at Davis-Monthan Air Force Base in Tucson, AZ... we now know. They'll start going on the auction block next week, but don't expect to take home anything resembling an aircraft.

The three-day, online auction of 27 million pounds of scrap is expected to net somewhere between $9 million and $10 million, or about 36 cents a pound. Government Liquidation, a subsidiary of Liquidity Services Incorporated, has been chosen to conduct the sale.

Reuters reports the Pentagon will require winning bidders to cut the scrap into pieces no larger than 4-by-4 inches, to make sure none of the old warbirds, or their parts, ever return to service.

"There is some sensitivity that the items not get out of (government) control and risk national security," said Tom Burton, president of Government Liquidation. "So the purchaser will do the mutilation into itty-bitty pieces. There will not be anything left that could be used as parts or that anyone but a smelter would be interested in."

Such an auction probably had to happen. Rising worldwide demand, especially in developing nations, has driven metals prices much higher in recent years. Copper, for example, was 60 cents a pound four years ago. Now, it's four dollars.

"The Chinese have been humongous buyers of aluminum and copper scrap," Burton added.

Many communities around the US are seeing frequent news reports of drug addicts staging bold thefts of everything from guard rails to rooftop air conditioners to sell for scrap metal to fund their habits.

Still, the old ghosts in the desert evoke emotions no guardrail can. The 50-year collection includes C-141 Starlifters, Navy and Marine A-4 Skyhawks, T-34 trainers dating from 1948 and HH-3E "Jolly Green Giant" helicopters. They've been picked clean of most useful parts long ago... but if you're a former military aviator, or even just an aircraft buff, it's still difficult to see them headed for the smelter.

The auction is open to qualified bidders only, and runs from 12:01 am Eastern Time Monday through 8pm Thursday. Be sure and bring your Sawzall.

FMI: Click Here For Auction Info

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