Military Aircraft: Information on Air Force Aerial Refueling	 
Tankers (24-JUN-03, GAO-03-938T).				 
                                                                 
Both the Congress and the Department of Defense are concerned	 
about the age of the U.S. aerial refueling fleet and its	 
potential impact on the military services' ability to meet	 
operational requirements. Aerial refueling provides a key	 
capability that is essential to the mobility of U.S. forces. At  
present, the Air Force is in the early stages of planning for	 
modernizing its aging fleet. In this testimony, GAO was asked to 
present its initial observations on (1) the status of the KC-135 
fleet, including its age, projected life limits, and mission	 
capable rates (i.e., the percent of time on average that the	 
aircraft are available to perform their assigned mission); and	 
(2) Air Force aerial refueling requirements.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-03-938T					        
    ACCNO:   A07345						        
  TITLE:     Military Aircraft: Information on Air Force Aerial       
Refueling Tankers						 
     DATE:   06/24/2003 
  SUBJECT:   Military aircraft					 
	     Military aviation					 
	     Military budgets					 
	     Aircraft maintenance				 
	     Aircraft research					 
	     Air Force procurement				 
	     Strategic planning 				 
	     DC-10 Aircraft					 
	     KC-10 Aircraft					 
	     KC-135 Aircraft					 
	     HC-130 Aircraft					 
	     MC-130 Aircraft					 
	     F-18 Aircraft					 
	     S-3 Aircraft					 
	     Combat Talon II Helicopter 			 
	     Hornet Aircraft					 

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GAO-03-938T

Testimony Before the Subcommittee on Projection Forces, Committee on Armed
Services, House of Representatives

United States General Accounting Office

GAO For Release on Delivery Expected at 2: 00 p. m. EDT Tuesday, June 24,
2003 MILITARY AIRCRAFT

Information on Air Force Aerial Refueling Tankers

Statement of Neal P. Curtin, Director Defense Capabilities and Management

GAO- 03- 938T

This is a work of the U. S. government and is not subject to copyright
protection in the United States. It may be reproduced and distributed in
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separately.

The Air Force fleet of KC- 135 aircraft (which, at 543 aircraft,
represents the bulk of U. S. refueling capability) is an average of about
42 years in age. The Air Force projects that the KC- 135 aircraft have
between 36, 000 and 39,000 lifetime flying hours; according to the Air
Force, only a few KC- 135s are projected to reach these limits before
2040, although at that time some of the aircraft would be close to 80
years old. KC- 135s are being flown an average of about 435 hours per
year, on average, since September 2001. As the fleet

has aged, the aircraft have become expensive to maintain, averaging about
$4.6 million per year in total operations and support costs for the least
capable aircraft. Those costs include personnel, fuel, maintenance, and
spare parts. KC- 135s in the active duty forces are generally meeting the
85 percent goal for mission capable rates; rates were lower for aircraft
in the reserve forces, ranging from 70 to 78 percent. The Air Force
Reserve and Air National Guard operate over half of the KC- 135s.

In a 1996 report, GAO pointed out that the aging fleet of KC- 135s would
eventually need replacement and that the Department of Defense needed to
start planning for the recapitalization of the fleet. At that time, the
Department responded to our report saying that the current fleet would
meet requirements *for the foreseeable future* and planned to begin
procurement

of new tankers around fiscal year 2013. In 2000, the Air Force conducted a
study called the Tanker Requirements Study- 05, but it was never formally
completed. Therefore, DOD does not have a current, validated study on
which to base the size and composition of either the current fleet or a
future aerial refueling force. There is no effort currently under way to
update the Air Force study or to conduct an analysis of alternatives for
tanker modernization. The Air Force indicated recently that it plans to
conduct a new Tanker Requirements Study in the fiscal year 2004- 2006 time
frame.

KC- 135 Aircraft Refueling an F- 16

Both the Congress and the Department of Defense are concerned about the
age of the U. S. aerial refueling fleet and its potential impact on the
military services* ability to meet operational

requirements. Aerial refueling provides a key capability that is essential
to the mobility of U. S. forces. At present, the Air Force is in the early
stages of planning for modernizing its aging fleet.

In this testimony, GAO was asked to present its initial observations on
(1) the status of the KC- 135 fleet,

including its age, projected life limits, and mission capable rates (i.
e., the percent of time on average that the aircraft are available to
perform their assigned mission); and

(2) Air Force aerial refueling requirements.

www. gao. gov/ cgi- bin/ getrpt? GAO- 03- 938T. To view the full product,
including the scope and methodology, click on the link above. For more
information, contact Neal P. Curtin, (202) 512- 4914 or curtinn@ gao. gov.
Highlights of GAO- 03- 938T, a testimony

before the Subcommittee on Projection Forces, Committee on Armed Services,
House of Representatives June 24, 2003

MILITARY AIRCRAFT

Information on Air Force Aerial Refueling Tankers

Page 1 GAO- 03- 938T

Mr. Chairman and Members of the Subcommittee: I appreciate the opportunity
to appear before you today to discuss the important subject of aerial
refueling for military aircraft. Aerial refueling provides a key
capability in enhancing the mobility of U. S. forces. The Air Force is
beginning planning for the modernization of its aging aircraft fleet.

As you requested, my statement focuses on the following issues: * KC- 135
fleet status, including mission capable rates, age, and projected life

limits; and  Air Force aerial refueling requirements, including GAO*s
observations and

the results of GAO*s 1996 Air Force air refueling study. My statement is
based on two published GAO reports 1 and on our on- going work for the
Readiness Subcommittee of the House Armed Services Committee. Because of
the relatively short notice for the hearing, I have kept my prepared
statement short, focusing on some key issues that will help update you
with basic background information on the tanker fleet, as your office had
requested. As you know, DOD is in the final stages of negotiating a lease
agreement with Boeing for 100 new 767 aircraft that will be modified for
use as tanker aircraft and replace part of the current fleet. Because
details of that agreement have not been made public or provided to us, I
am not in a position today to discuss issues related to the lease.

While numerous military aircraft provide refueling services, the bulk of
U. S. refueling capability lies in the Air Force fleet of 59 KC- 10 and
543 KC- 135 aircraft. These are large, long- range aircraft that have
counterparts in the commercial airlines, but which have been modified to
turn them into tankers. The KC- 10 is based on the DC- 10 aircraft, and
the KC- 135 is similar to the Boeing- 707 airliner. The KC- 10 aircraft
are relatively young, averaging about 20 years in age. Consequently, much
of the focus on modernization of the tanker fleet is centered on the KC-
135s. These were built in the 1950s and 1960s, and now average about 42
years in age. 1 U. S. General Accounting Office, Air Force Aircraft:
Preliminary Information on Air

Force Tanker Leasing, GAO- 02- 724R (Washington, D. C.: May 15, 2002) and
U. S. Combat Airpower: Aging Refueling Aircraft Are Costly to Maintain and
Operate, GAO/ NSIAD- 96- 160 (Washington, D. C.: August 8, 1996). Status
of Aerial Refueling Fleet

Page 2 GAO- 03- 938T

Because of their large numbers, they are the mainstay of the refueling
fleet, and successfully carrying out the refueling mission depends on the
continued performance of the KC- 135s. Thus, recapitalizing this fleet of
KC- 135s will be crucial to maintaining aerial refueling capability, and
it will be a very expensive undertaking. Let me provide some additional
background information on the KC- 135

fleet:  There are two basic versions of aircraft, designated the KC- 135E
and

KC- 135R. The R model aircraft have been re- fitted with modern engines
and other upgrades that give them an advantage over the E models. The E
model aircraft on average are about 2 years older than the R models, and
the R models provide more than 20 percent greater refueling capacity per
aircraft.  The E models are located in the Air National Guard and Air
Force Reserve. Active forces have only R models. Over half the KC- 135
fleet is located in

the reserve component.  While the KC- 135 fleet averages over 40 years in
age, the aircraft have

relatively low levels of flying hours. The Air Force projects that E and R
models have lifetime flying hours limits of 36,000 and 39,000 hours,
respectively. According to the Air Force, only a few KC- 135s would reach
these limits before 2040, but at that time some of the aircraft would be

about 80 years old.  Flying hours for the KC- 135s averaged about 300
hours per year between

1995 and September 2001. Since then, utilization is averaging about 435
hours per year.  According to Air Force data, the KC- 135 fleet had a
total operation and

support cost in fiscal year 2001 of about $2.2 billion. The older E model
aircraft averaged total costs of about $4.6 million per aircraft, while
the R models averaged about $3.7 million per aircraft. Those costs include

personnel, fuel, maintenance, modifications, and spare parts. By most
indications, the fleet has performed very well during the past few years
of high operational tempo. Operations in Kosovo, Afghanistan, Iraq, and
here in the United States in support of Operation Noble Eagle were
demanding, but the current fleet was able to meet the mission
requirements. Approximately 150 KC- 135s were deployed to the combat

theater for Operation Allied Force in Kosovo, about 60 for Operation
Enduring Freedom in Afghanistan, and about 150 for Operation Iraqi
Freedom. Additional aircraft provided *air bridge* support for movement of
fighter and transport aircraft to the combat theater, for some long- range
bomber operations from the United States, and, at the same time, to help

Page 3 GAO- 03- 938T

maintain combat air patrols over major U. S. cities since September 11,
2001.

Data on the mission capable rates for the KC- 135 fleet are shown in the
following table. Mission capable rates measure the percent of time on
average that the aircraft are available to perform their assigned mission.
The goal for KC- 135s is an 85 percent rate; the table shows the number of
aircraft in the different components along with the mission capable rates
for the period October 2001 through March 2002. Table 1. Mission Capable
Rates for KC- 135 Aircraft

Component Number of aircraft Mission capable rate (percent)

Active 245 85 Reserve R models 52 78 National Guard R models 115 78
Reserve E models 16 70 National Guard E models 115 76 Source: Air Force
data. For comparison purposes, the KC- 10 fleet is entirely in the active

component, and the 59 KC- 10s had an average mission capable rate during
the same period of 81.2 percent.

The rest of the DOD refueling fleet consists of Air Force HC- and MC- 130
aircraft used by special operations forces, Marine Corps KC- 130 aircraft,
and Navy F- 18 and S- 3 aircraft. However, the bulk of refueling for
Marine

and Navy aircraft comes from the Air Force KC- 10s and KC- 135s. These
aircraft are capable of refueling Air Force and Navy/ Marine aircraft, as
well as some allied aircraft, although there are differences in the way
the KC- 10s and KC- 135s are equipped to do this.

In our 1996 report, we pointed out that the aging fleet of KC- 135s would
eventually need replacement and that DOD needed to start planning for the
recapitalization of the fleet. We recommended that DOD consider looking at
dual- use aircraft* an aircraft that could be used as a tanker or as a
cargo carrier, depending on mission requirements. The KC- 10 fleet is
actually used in this way now. In response to our recommendation, DOD

agreed that it would consider such an option when it did a comprehensive
analysis of tanker requirements and alternatives. However, the department
also stated that the current fleet would meet requirements for *the DOD*s
Tanker

Requirements and GAO*s 1996 Air Force Refueling Study

Page 4 GAO- 03- 938T

foreseeable future.* Moreover, in its response to our report, DOD stated
that *While the KC- 135 is an average of 35 years old, its airframe hours
and cycles are relatively low. With proper maintenance and upgrades, we
believe the aircraft may be sustainable for another 35 years.* At the time
of our report, the Air Force had deferred the start of KC- 135 replacement
from fiscal year 2007 to 2013. In discussions with the Air Force last
year, officials indicated that they had moved up that timetable to fiscal
year 2009.

DOD does not have a current, validated study on which to base the size and
composition of either the current fleet or a future aerial refueling
force. An Air Force study called Tanker Requirements Study- 05 (TRS- 05)
was conducted in 2000, but it was never formally completed nor were its

preliminary results released. Drafts of the study identified a shortfall
in tanker capability, but the study was based on the old strategy of
supporting two major theater wars. There is no effort under way that we
know of to update the TRS- 05 study and release it or to conduct an
analysis of alternatives for tanker modernization. The Air Force indicated
recently that it planned to conduct a new Tanker Requirements Study in the
fiscal year 2004- 2006 time frame.

Mr. Chairman, this concludes my prepared statement. I would be happy to
respond to any questions you or other Members of the Subcommittee may have
at this time.

Contacts and Acknowledgments

For future contacts regarding this testimony, please contact me at (202)
512- 4914 or Brian Lepore at (202) 512- 4523. Individuals making key
contributions to this testimony included Joseph J. Faley, Kenneth W.
Newell, Tim F. Stone, and Susan K. Woodward.

(350404)

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