United States of Boeing
Tuesday, May 19, 2009

In a relatively new twist in the operation of the U.S. military, the Pentagon is leasing surveillance drones from Boeing, rather than buying them. Rear Admiral Bill Shannon, executive officer for the unmanned aviation program, says that leasing the planes is faster and easier than going through the normal acquisition process.
The Navy recently deployed Boeing’s ScanEagle drone from the USS Bainbridge to the coast of Somalia, aiding in the rescue of Captain Richard Phillips, who was held hostage by pirates.
The surveillance drones manufactured by Boeing, including the ScanEagle, the A160 Hummingbird, and the unmanned Little Bird, function for aerial surveillance and cargo delivery missions. According to Teal Group Corp. analyst Philip Finnegan, leasing drones allows agencies to get their “feet in the water.” Boeing Co.’s competitors, Lockheed Martin Corp., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp., and L-3 Communications Inc., do not have plans use leasing services to supply drones to the military.
In May 2003 the U.S. Air Force announced it would lease 100 KC 767 tankers from Boeing, but critics pointed out that this would be more expensive than buying them, so the Air Force chose to lease only 20 and purchase the remaining 80.
-Jacquelyn Lickness
Boeing Targets $10 Billion Market for Leased Drones (by Gopal Ratnam, Bloomberg)
Boeing: We Screwed Up, Give Us $500 Mil (Noah Schactman)
Taxpayer Will See Best Value in Leasing Boeing 767 Tanker Aircraft (news release, Boeing)
Boeing (Wikipedia)
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