Article "Retired RAF Tristars Will Get New Lives As

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Article "Retired RAF Tristars Will Get New Lives As Contracted Aerial Refuellers".

http://www.thedrive.com/the-war-zone/13486/re...-refuelers

In my professional opinion, the article correctly identifies the opportunity for those contractor companies with a foot in the door with "probe-and-drogue" to be able to expand to take on some of the USAF "flying boom" task. The article suggests the possibility of using ex-USAF aircraft - I have already covered in earlier posts the possibility of buying new A330 MRTT and following the successful RAF / Airtanker model.

Here are some salient quotes from the article:

"the Tristars seemed like a perfect opportunity for a new private aerial refueling contractor to emerge. Now, this is exactly what has happened, with Tempus Applied Solutions of Texas buying six of the Tristars with the intention of entering the contracted aerial refueling market.

"The existing Tristar tanker configuration includes two hose and drogue refueling systems installed on the aircraft's empennage. This configuration allows for only one aircraft to be refueled at a time, with the other hose and drogue system acting as a spare. It is not uncommon for aircraft to break off a drogue "basket" or for other refueling components to fail, which would often result in a emergency divert by thirsty aircraft if no other tankers were nearby. As such, the Tristars offer enhanced reliability, not to mention they can hold a whopping 300,000lbs of gas."

"It is also possible that Tempus may add two additional refueling pods to their Tristar's outer wing areas, allowing for three aircraft to refuel simultaneously instead of one."

"Three Tristars would represent a substantial private aerial refueling capability that the US Navy, USMC, or other foreign air arms with aircraft that use probe and drogue tanking to take advantage of. For the Navy and USMC in particular, the Tristars could offload some of NAVAIR's tanking demand off the USAF's shoulders."

"Large tanker aircraft, like the L1011, could not only help for training, but they could also drag groups of fighters across oceans for deployments, while also carrying support personnel and material. These missions can tie up USAF tankers for days at a time, and thirsty fighters like the F-35B will only require more of this type of support in the future."

"Tempus says it has already started marketing the aircraft's services to the Navy, USMC and NATO allies."

"The USAF should move toward obtaining a significant portion of its aerial refueling needs from private contractors who can offer tailored tanking solutions and elastic capacity. Doing so would mean the USAF would not have to invest so heavily up-front in tanker fleets or the infrastructure needed to support them, while contractors can procure fleets of smaller and larger aircraft based on what the market demands."

"As the KC-46A comes online, it will be a great time for potential commercial tanker services providers to absorb retiring KC-135Rs, or introduce new platforms depending on what their customers want. Even smaller tankers, like those based on the 737 or G550, can fulfill many missions where large tankers simply are not needed, and do so at a far lower cost."

"The Air Force could use the money saved by unloading a portion of their tanking mission to private contractors to invest in building new tankers faster, and at lower cost, to replace aging ones. Retired KC-10s and KC-135s could find new life in the hands of contractors. Unloading a portion of the tanking mission is not just about having less planes to sustain. It also means that USAF pilots, who are in short supply, can be sent to fly other airframes and large swathes of existing infrastructure can be sold off or leased to private operators."




Tempus Applied Solutions Holdings, Inc. (TMPS) Stock Research Links

TMPS Board Company Profile Buy Rating Time & Sales News Filings Financials
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