Pentagon approves Air Force plan to lease Boeing tankers

The Pentagon has approved an Air Force plan to lease 100 modified 767 jetliners from Boeing Co. for use as refueling tankers, Senate Intelligence Committee Chairman Pat Roberts, R-Kan., announced Friday, the Associated Press reported.

The controversial plan has undergone repeated delays, but supporters in Congress kept up pressure on the Pentagon.

"I am very pleased the Department of Defense approved the 767 tankers lease," Roberts said. "I've worked for more than a year with the Air Force and the department to see that this decision was reached."

Critics have complained about the unusual structure of the deal, which calls for leasing the planes rather than buying them outright. The Pentagon said the cost of the leases will be less than the $16 billion, and that a report on the details of the deal will be sent to Congress.

The plan has strong support because of the approximately 2,300 jobs it would bring to Boeing plants in Kansas and Washington state. Proponents also contend that leasing the planes will sharply curb upfront costs and speed completion of the planes. The Pentagon said Boeing can build the tankers for about $131 million each, Roberts said.

Earlier versions of the plan called for the government to buy the planes for $4 billion at the conclusion of the lease. Foes, including Sen. John McCain, R-Ariz., have attacked the plan as corporate welfare for Boeing.