Boeing claims KC-45A fuel costs would soar

ST. LOUIS, March 17 (UPI) -- Boeing claimed Monday that buying the rival KC-45A air tanker would cost the U.S. Air Force an extra $30 billion.

"Boeing reports that the U.S. Air Force likely would pay up to $30 billion more in fuel bills over 40 years to operate a fleet of 179 Airbus A330-200 aerial refueling tankers, compared to a similar number of tankers based on the Boeing 767-200ER," the company said in a statement Monday.

"This assessment is based on a Conklin & de Decker Aviation Information study, funded by Boeing, that calculated the Air Force's cost with oil at $100 per barrel and $125 per barrel. Oil prices hit a record high last week above $110 a barrel, and many analysts expect prices to continue climbing," Boeing said.

"Conklin & de Decker, an independent aviation research company, recently recalculated fuel price costs for the Boeing 767-200ER and the Airbus A330-200, popular commercial twin-aisle aircraft that are being converted to military aerial refueling tankers. They fly about the same distance, but the larger, heavier A330 is less fuel efficient than the 767-200ER. As a result, the A330-200 consumes 24 percent more fuel per trip than the 767-200ER," Boeing said.

"The study also factored in estimated costs of refining, transportation, storage, handling and fueling the aircraft. It concluded the estimated price per gallon at $3.11 with oil costing $100 per barrel would cost the Air Force about $25 billion dollar more over the 40-year service life of 179 Airbus A330-200 tankers, and $29.8 billion more with oil at $125 a barrel. The Air Force previously estimated that it pays an additional $600 million a year for each $10 per barrel increase," Boeing said.

"In January, Boeing funded and released a 53-page study by Conklin & de Decker that showed Boeing's 767 airplane consumed 24 percent less fuel than the larger A330 and would save about $14.6 billion in fuel costs over 40 years. The study used published data to calculate the fuel consumption of flying a fleet of 179 767-200ER and Airbus A330-200 aircraft over a 40-year service life," the company said.