Money, politics at center stage in Air Force tanker race

Posted on: May. 2nd, 2006 || Source: marketwatch.com | E-mail Article | Print Article

WASHINGTON (MarketWatch) -- The Pentagon asked the defense industry last week for information on new tankers, used tankers, borrowed tankers and even subsidized tankers.

Proposals for flying gas stations soon will come pouring in from Boeing Co. (BA), Northrop Grumman Corp. (NOC) and possibly Lockheed Martin Corp. (LMT). Airbus (ABI.YY) is on Northrop's team, and a few shipping companies may want a piece of the action.

But money and politics may play a bigger role than the military's technology wishlist. What can the Defense Department afford? How important are long-term costs compared to short-term savings?

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