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Issue 38 - February 19, 2008

In this issue of the EADS North America Tanker Activity Update:

•	The KC-30 Tanker offers more than $55 billion savings in USAF's KC-X tanker replacement program

Comprehensive analyses show that Northrop Grumman’s KC-30 Tanker can provide more than $55 billion in cost savings for the U.S. Air Force over 40 years—almost $1.4B per year—compared to its competitor in the KC-X tanker replacement program, the KC-767 Advanced Tanker (AT).

These analyses – detailed in a Northrop Grumman press release issued this month – demonstrate that the more capable KC-30 would provide the Air Force and American taxpayers significant savings in the areas of refueling, airlift operations and support costs, as well as C-17 fleet life savings compared to the KC-767AT.

Using the Air Force methodology for calculating capability, the KC-30 can meet refueling demand using just 80 percent of planned flying hours compared to the less capable KC-767AT.

> Refueling savings of $18.1 billion over 40 years

The Air Force plans to buy 179 tankers.  The more modern and fuel-efficient KC-30 offers about 20 percent more capability than the KC-767AT.  That means that the KC-30 can meet the same refueling requirements flying 20 percent fewer hours.  The result is $452 million per year in Operation & Support (O&S) savings compared to the KC-767AT.

> Airlift O&S savings of $17.5 billion over 40 years

Compared to the KC-767AT, assuming all its hours flown are dedicated to meeting refueling demand, the KC-30’s 20 percent additional flying hour allocation could be used to reduce stress on the over-tasked airlift fleet, particularly the newer C-17.  C-17s are currently flying approximately 250 more hours annually per aircraft than planned, which generates increased operations and support costs.  The vast majority of the cargo delivered is palletized, which can be carried on the multi-mission KC-30.

The Air Force could employ the KC-30’s remaining flying hours to keep C-17 flying hours at planned levels.  The KC-30 is a more efficient aircraft with lower hourly O&S costs than the C-17 due to its aerodynamic design and large cargo floor (32 pallets, versus 18 on the C-17).  Each KC-30 sortie can do the job of approximately 1.8 C-17 sorties.  The resulting annual O&S savings would amount to $437 million per year.

> C-17 fleet life savings $19.7 billion over 40 years

The increased usage of the C-17 not only costs more in O&S but also requires the Air Force to replace its airlift fleet sooner than planned.  The cost per flight hour is calculated by dividing the acquisition cost by the airframe’s hourly life.  The KC-30, with a lower acquisition cost and more than three times the airframe life of a C-17, would enable the Air Force to reduce C-17 flying hours and delay replacement.  Using the KC-30’s additional 20 percent available flying hours would enable the Air Force to avoid $492 million per year in C-17 fleet recapitalization spending.

- For additional information, see the KC-30 Tanker website.

Contact:
Guy Hicks
Vice President – Communications and Public Relations
EADS North America
Tel: 703 236-3300
e-mail: guy.hicks@eads-na.com