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ELK GROVE VILLAGE, Ill., Aug. 17, 2004. International Air Systems, Inc. announces that it has submitted a proposal to the U.S. Air Force in response to their Request For Information for an Analysis of Alternatives Study 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.
IAS, Inc. Phase I proposal for the first 100 tankers to the Air Force is priced at $1.8B to $2.2B through the first 10 years of service. This service 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.
The proposal offered by IAS compares very favorably to the current proposal by Boeing to lease 100-767 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, Inc. 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, Inc. has submitted to the Air Force also suggests that there are various options that can be explored that will: 1) provide immediate cost savings in KC-135 operations, 2) provide new tankers more quickly as research and development of the mixed fleet aircraft under IAS' proposal occurs, and 3) an option to increase the Air Force's airlift capabilities through the private acquisition of C-17 aircraft through a parallel program. IAS, Inc. is proud to be able to provide cost effective solutions to the Air Force's requirement for the recapitalizing of the KC-135 fleet.
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