WikiLeaks Document Release http://wikileaks.org/wiki/CRS-RL33692 February 2, 2009

Congressional Research Service Report RL33692 Civil Reserve Air Fleet (CRAF) William Knight and Christopher Bolkcom, Foreign Affairs, Defense, and Trade Division

April 25, 2008

Abstract. The Civil Reserve Air Fleet (CRAF) was created by President Truman in 1951. As a result, the Departments of Commerce (DOC) and Defense (DOD) formulated a contingency plan to meet the nation’s needs in times of crisis. When the Department of Transportation (DOT) was created, it assumed DOC’s role in the CRAF program, and today, DOD and DOT work together to manage the CRAF pro- gram. This report provides background, analyzes current issues, and summarizes recent legislation for the CRAF. http://wikileaks.org/wiki/CRS-RL33692 Foreign Affairs, Defense, andTrade Division Civil Reserve AirFleet(CRAF) William Knight andChristopherBolkcom William Updated April 25,2008 Order Code RL33692 http://wikileaks.org/wiki/CRS-RL33692 airlift reserves,thegovernme to commit to the CRAF program and toassure the ofadequate neede ready when of CRAF, foractivation needed. characteristics performance or financial assistance to U.S. air carriers. carriers. air U.S. to assistance or financial arrangements, potentialchange inDODre include cost Thesefactors role of CRAF. of number factors may and character size, future the be considered when examining pressures anddiverging inte all accountsitappearsto be asymbiotic re International AirliftServices. aircrafttoth thatobligate Assignment ofaircraftto short-range sectionsandthenational segmen evacuation. Theinternationalsegment is airlines. stringent standardsofFederal Aviati be U.S.carriersfully certifiedbyFe the the capabilityairlift exceeds ofthemilitary ai program. today,CRAF program, DODandDOT and Department ofTransporta contingency plan to meet the nation’s airlift needs incrisis.of times When the Summary a result, the Departments of Commerce of a result,theDepartments The commercial airlines contractually pledgeaircraft tothe various segments This reportwillbeupdate CRAF presents benefits The CRAF has three main segments: national, international, and aeromedical The CRAFsupportsDOD airlift requirements The Civil Reserve AirFleet (CRAF) wa Civil ReserveAirFleet(CRAF) a segment dependsonthenature tion (DOT) was created, it assumed DOC’srole inthe it tion (DOT)was created, rests mayrests bring could emerge that changes to CRAF. A nt makes peacetime airliftbus nt makes and opportunities for both DOD and U.S. airlines. By both DODandU.S.airlines. for opportunities and d aseventswarrant. e CRAF.DODoffersbusinessthrough the deral AviationAdministr on Regulationson pertaining tocommercial , otherpotentialgove (DOC) andDefense( lationship. Yet,asci d. To provide incentivesforcivilcarriers To d. quirement forCRAF, further dividedintothelong-rangefurther and t into thedomesticandAlaskansections. s createdby orderin1951. As executive rcraft fleet.AllCRAFparticipantsmust work together tomanage theCRAF in emergenciesfor whentheneed oftherequirementand iness availabletocivilian rnment /commercial rcumstances change, DOD) formulateda ation, andmeetthe and industrialbase http://wikileaks.org/wiki/CRS-RL33692 Table 3. Recent CRAF Participation CRAF 3.Recent Table B. FY2008Appendix NationalDefense A.FY2008 NationalDefense Appendix Summary Legislative ofRecent Activity Analysis: Potential Future of CRAF ...... 5 Background Introduction Contents Table 2.KC-135andPotentia Table 1. Airlines ofTables List ParticipatingFigure 1.CRAF Requirements and Commitments in the Civil ofFigures List Reserve Air Fleet...... 4 Section 1046...... 15 Section 356...... 13 FY2006 FY2007 FY2008 Industrial Base/Financial AssistancetoAirCarriers ChangesPotential inDOD’sAirlift OtherCost Government Factors ...... 5 / CommercialCRAF MembershipActivation...... 3 ArrangementsContractual ...... 3 ...... 6 RelationshipCRAF ...... 2 Structure ...... 2 KC-X Acquisition BC-17...... 9 Potential C-17Acquisition DOD AirliftRequirements AeromedicalNationalInternational Evacuation Segment...... 2 Segment...... 2 Segment ...... 2 ...... 1 ...... 1 ...... 12 ...... 12 ...... 12 l KC-XAirlif ...... 10 ...... 11 ...... 9 ...... 7 Authorization Act(P.L.Authorization 110-181), Authorization Act(P.L.Authorization 110-181), Requirements andForceStructure ...... 12 t Capabilities ...... 8 ...... 10 ...... 11 ....7 http://wikileaks.org/wiki/CRS-RL33692 maintain at least four complete crews for each aircraft in CRAF. in crewsforeachaircraft fourcomplete least at maintain commit and also Aircraft committed mustbe U.S.registered andmust air carriers cargo fleet. CRAF-capable its and15%of passenger fleet, CRAF-capable of its 121). Tojoin (Part commercial airlines and meet the stringent standards of the ofthe standards stringent the and meet must be U.S.carriers fullycertified by the Federal Aviation Administration (FAA), primarily expected to transport passenger summarizes recent legislation for the CRAF. CRAF. forthe legislation recent summarizes 4 3 2 1 significant trends ina comprehensive review every months. six These initiatives are contract performance, financialmanagementand condition initiatives, summarizing initiatives to monitor the carrier’s safety record, operations and maintenance status, cargo, andoversized carry aredesigned to aircraft outsized thecapacityairlift exceeds ofDOD’sorganic program. today, CRAF program, DODandDOT and DOC’s role inthe Department ofTransportation (DOT)was created, itassumed a intimes contingency ofcrisis.needs When the plan tomeetairlift the nation’s As aresult,theDepartmentsofComme Storm: Issues for the Future,” RAND, Santa Monica, CA,1993.pp.4-5. Monica, RAND, Santa Storm: Issues Future,” the for [http:// Associated Terms civilian contract cargo carrier pallet,but isairtrans (463L) standard or C-17 aircraftorsurfacetr 1005. andStorage.”With RespecttoTransportation March2,1951,p.1004- Agencies Federal “Outsized cargo” exceeds thedimensions ofov No 10219,Federal Register 16,“Defining CertainOrder Responsibilities of Executive Mary E. Chenoweth,E. Civil “The Reserve AirMary FleetandOperation Desert Shield/Desert Civil ReserveAirFleet (AMC)analystsAir Mobility implement a number ofsurveillance The CRAF supports DODairliftrequirements The CivilReserveAirFleet (CRAF) wa www.af.m 2 Thisreportprovidesbackground, Civil Reserve AirFleet (CRAF) il/factsheets/factsheet.asp?id=173] , amended through October17,2007,pp.401-402). ansportation. “Oversized cargo” exceedsthedimensionsa of s. (Joint Publication1-02,s. (Joint (Fact Sheet), U.S. Air Force, July 2007, at July (FactSheet),U.S. Air Force, Introduction Background portable ontheC-5, C-17, C-130, KC-10, andmost CRAF, acarriermustcommitatleast30% rce (DOC) and Defens rce (DOC)and Federal Aviation Regula s and cargo pallets. AllCRAF participants s createdby PresidentTrumanin1951. ersized cargo and requires theuseofa C-5 airlift fleet. While DODstrategic airlift airlift fleet.While work together tomanage theCRAF in emergencies whentheneedfor analyzesand currentissues, DOD Dictionaryof 3 CRAF air carriers are carriers air CRAF e (DOD)formulated 4 tions pertaining to Militaryand 1 http://wikileaks.org/wiki/CRS-RL33692 let in FY2005.let air ambulances. air aeromedical equipmentareus continental litters, and otherstanchions, United States. Kitscontaining litter of casualties fromoperationalassists theaters inthe evacuation tohospitals inthe during anemergency. States United domestic sectionisdesigned tosatisfy CRAF Structure and theFAA through establishedliaisonofficers. supplemented by anopenflowofinforma 9 8 7 6 5 guaranteed. not to award million, whileAMCexpected $2.1 b airlines that obligate aircraft to the CRAF through the International AirliftServices. peacetime makes reserves, thegovernment airlift ofadequate States United assurethe program andto CRAF the to aircraft ready foractivation when needed. Toprovide incentives forcivil carriers tocommit Relationship Contractual U.S. Pacific Command’s area offshore airliftrequirements. and cargo aircraftmakeuptheshort-ra passenger Medium-sized operations. oftransoceanic capable commercial needed. characteristics performance aircraft andthe requirement Alaskan sections. Assignment short-range sections,whilethenationalse evacuation. Theinternationalsegment is Air ForcePrint NewsToday. “Air Force announcesCRAF contractsvalu Ibid. Ibid. Ibid. Civil ReserveAirFleet Aeromedical Evacuation Segment. For FY2007, the guaranteed portionofDOD’sCRAF contractwas$379 For FY2007,theguaranteed ofCRAF, segments various the to pledge aircraft contractually The airlines National Segment. Segment. International The CRAF hassegments: three main international, national, and aeromedical 8 9 The Air Force announced $2.2billioninCRAF contractshadbeen DODletcontractsworth$3.8billionbetween FY1998 and (FactSheet),U.S.AirForce, July 2007. The aircraft in the Alaskan section provide airlift within September 13,2005. ed toconvertcivilBoeing of aircraft toasegment de of responsibility, The long-range international section consists CRS-2 increased DODairliftrequirementsinthe ed at$2.2billion.”(Release Number: 570905) nge internationalsectionsupporting near tion on all contract carriers between AMC between carriers tion onallcontract further dividedintothelong-rangefurther and gment isdivided intothe domestic and illion inadditionalbusinessthatwere The aeromedical evacuation segment evacuation Theaeromedical airlift businessava 5 specific to needs. The 767passenger aircraftinto pends onthenatureof 6 ilable tocivilian 7 http://wikileaks.org/wiki/CRS-RL33692 million; and2002,$1,280million. AMC controlstheaircraftmissions. carriers continue tooperate and maintain the aircraft withtheir resources; however, a CRAF missionis24to48 hoursafterthemissionisassigned by AMC.Theair notifiedofcall-up,thecarrierres DOD. When necessaryto theextent provide theam to only is stage. used Each activation CRAF stage appropriate CRAF the of the activate additional aircraft,itwoul During a Command crisis, (AMC)has a ifthe need AirForce for AirMobility stages Secretary authority ofCRAF. three of the forall ofDefense, activation is the Only theSecond Time inHistory,” airman/0403/world7.html]. Activation FY2002: 13 12 11 10 intheinte aircraft This includes1,172 CRAF Membership cargo requirementswereme included thelong-range internationalpasse Operation Iraqi Freedom, lastedfrom 230,000 tonsof cargo at a 5,460mi Storm, CRAF airlinesexecuted international passenger andcar Shield/Storm fromAugustthr 18,1990, 57-year history.program’s Thefirst for thecontingency athand. Need Revamping.

Chuck Roberts, MasterSergeant, USAF, “CivilI Activates Reserve for Air FleetStage Ibid. Military Readiness. Civil ReserveAirFleet Readiness. Military Civil ReserveAirFleet The commander, U.S.Transportation As ofMarch2008,35carrierswith1,262ai overthe occasions separate hasbeenformally ontwo CRAF activated ! ! ! incrementalstagesThreeactivationof allow fortailoring an airliftsuitable force Stage III Stage II Stage I 10 1998,$646million;1999,$7102000,$6292001,$572 —minorregional crises. General Accounting Office (GAO-03-278) Accounting Office General December 2002. p.15. —major theater war. —periods ofnational mobilization. (FactSheet),U.S.AirForce, July 2007. d request to the TRANSCOMcommandersteps totake 11 t organically or with voluntary commercial contracts. cost of$1.4 cost billi The stages of activation areasfollows: Thestages ofactivation go segments up to Stage II. Stage go upto segments Desert Operation During Airman 12 Februaryand 2003, 18, 8,2003through June CRS-3 rnational segment (905long-range and267 ough May 24,1991,andincludedlong-range ount ofcivilaugmentation airliftneededby ssions transporting 726,000passengers and instance occurred for Operations Desert occurredforOperations instance Can RespondasPlanned,butIncentivesMay Command (TRANSCOM), withapproval nger segment upto Stage 1 —long-range , April2003,at ponse time to have its aircraft readyaircraft for ponse timetohaveits on. The second activation, during rcraft were enrolled in theCRAF. enrolled rcraft were [http:// www.af.m il/news/ 13 http://wikileaks.org/wiki/CRS-RL33692 [http://www.dot.gov/ost/oet/craf/CR0308.xls] evacuation segments. evacuation short-range), 40aircraftinthenational se 14 b. Champion Air plans todiscon a. ATA Airlines discontinued operations and file for bankruptcy protection under Chapter 11on April Source: Michael Lowder, Letter to CRAF ProgramCRAF to MichaelLowder,Letter vrre nentoa ntdPre evc Northern AirCargo United ParcelService Evergreen International Table 1.Airlines ParticipatingintheCivil Reserve Air Fleet Continental Airlines Ryan Intl. Airlines Jet Blue Airways Jet Ryan Intl. Airlines Continental Airlines ID=21]. [http://www.championair.com/PressRoom.asp?PressRelease at online See CRAF. to aircraft ata/ news/0080403.pdf]. 2, 2008,resulting in the loss of 31 aircraft toCRAF. Seeonline at[http:// Air Trans Airways Midwest Airlines Lynden Air Airlines Midwest Airways Trans Air North American Airlines ATA Airlines ATA Airlines American North Airlines American i rnpr nl uryArAmerican Airlines Murray Air Air TransportIntl. eiiArCroWrdArasSun Country Airways World Gemini AirCargo rnirArie otws ilnsNorthern Air Cargo Frontier Airlines FEDEX Airlines US Airways Northwest Airlines Northwest USAirways Airlines FEDEX et i ie otenArLynden AirCargo Delta AirLines et i ie ntdArie USAirways Airlines United Lines Air Delta Department of Transportation which issues updates monthly. updates which issues Transportation of Department ATA Airlines ATA H iwy ntdArie DHL Airways ro i miItrainlDelta Airlines Omni International Arrow Air ta i oa i ag DHLAirways Cargo Air Polar Air Atlas B i ait i Air Kalitta ABX Air Long Range Section Short RangeSection Short Long RangeSection oetcScinAlaska Section Domestic Section a 14

Table 1 Aeromedical EvacuationSegment tinue flight operations on May 31,2008resultingthe loss in of 6 International Segment summarizes current CRAF members: otws ilnsChampion Air Northwest Airlines National Segment CRS-4 Participants, Enclosure1,March 11,2008,at gment, and 50 aircraft in the aeromedical the in and50aircraft gment, www.ata.com/about_ a b http://wikileaks.org/wiki/CRS-RL33692 “Correspondence,” in Trade-offs,” written inresponsetoa previous letterto the editor “Transport Operation Desert Stormtoillustrate CRAF’s cost advantages: Program,” March1996,p. 2, at[http Cost Factors 17 16 15 Implications transport passengers andcargo pallets. commercial aircraft typically have longer range, and are optimized toefficiently hostile fire effectively deters civilian crewsenteringzones.combat However, from of rollon/rolloffcapability and reduced ramp maneuverability. potential Further, aircraft tendtocongest ai missions suchasairdrop,orsupportspeci commercialaircraftca For example, aircraft haveopera re that factors —all additional aircraft,pay pers half of thenation’sstrategi Government Accountability Office(GAO) compared toprocuring andmaintaining a changes CRAF. to change, pressuresanddivergin circumstances industry —by allaccountsitappearsto GAO/NSIAD-96-125, “M Ibid., p.7. Robert C.Owen,Professor, have cost the DOD about $1 have costtheDODabout Replacing CRAF’s 1992Stage IImilitary-stylecapabilitywith transports would capacity. airlift very a substantial the veryDOD on call a had For has cost, small A RANDstudy ( assumptions usedforaircraftreplacement cost. from $15to$50billi Purchasing additionalmilitary aircraft using th carriers about$1.5billionfor other expensesofmaintaining standby the costsofacquiringto andsupporting airc based onweighted average carriercosts— —DODpays rates free not is activation an during aircraft CRAF of use The While CRAF isrelatively inexpensive, some maycommercial pointoutthat The primary benefitthatCRAFimparts CRAF presentsbenefitsa ) alsoincludesadiscussionof Analysis: PotentialFutureofCRAF Aviation Week andSpaceTechnology tional limitationswhencompared main relevanttoday. Finding the Right Mix of Military and Civil Airlift, Issues and Finding theRightMixofMilitaryandCivilAirlift, Issues rfields because oflonger ground timesresulting froma lack ilitary Airlift:Observations ontheCivil Reserve Air Fleet c airlift capabilityc withoutthegovernment having tobuy on, accordingon, to Air Force officials, depending on onnel costs,ormaintainth Embry-Riddle Aeronau nd opportunities for both the DOD and the U.S. nd opportunitiesforboththeDODandU.S. billion annually (1992 dollars) overannually(1992 thepastseveralbillion ://www.gao.gov CRS-5 nnot carry outsized cargo, conductspecial nnot carrycargo, outsized 16 GAOreferencestheuseofCRAFduring military airliftcapability. AMC paid the to provideto similar capability would cost larger organic a1996 fleet.For example, al operationsforces.Also,commercial the cost-effectiveness ofCRAF: cost-effectiveness the report notedthatCRAF “provides up to but thecostisminimal incomparison raft, paying and training ,and g interests may emerge that could bring be asymbiotic relationship.Yet,as to DOD is its relativelyto DODis lowcostwhen eir aircraftduring theoperation. /archive/1996/ns96125.pdf]. 17 tical University-Daytona Beach, FL, to DOD’sorganic airliftfleet. , October8,2007,p.8. e aircraft during peacetime” e aircraftduring 15 http://wikileaks.org/wiki/CRS-RL33692 Implications. 20 19 18 hoped todeliverup20%ofDODcar Af carriers todelivermilitaryinto supplies “Commercialcargo and Government AirProgram”air —toenlist commercial satisfy peacetimemobility needs. airlines attheofficialg personnel, traveling ongovern U.S. government business.Federal em airlines commercial and lets contractsto Through the General Services Administration (GSA),the U.S.government negotiates Other Government /Commercial Arrangements However, CRAF isnotfree,anditcostsmo purchasing andope asense,than cheaper, in January 2004. commercial airlinesmovedtwiceasmany DOD needsisalready inevidence.InJa Recent events may suggest agrowing useof that aircraft for commercial every-day procuring andoperating acerta increasing pressure, itmay appear attractiv used. excess airlift capability mustbe routinelyincurred, even ifthe fullcapacity israrely this average acquiring andmaintaining the daily with than associated use.Costs DOD maintainsamilitary airliftfleetwith a January 25,2005. January RAND op cit. p.22. RANDopcit. Jean Gebman, et al. Micheline Maynard. “AirlinesMoving Month.” This Micheline MoreTroops annually decades. Replacing theStage In July 2006theU.S. CentralComma not theonlyis CRAF meansby whichDOD additional businesstoCRAF carriers. a crisistotheextentthatthey arec incentive touseitsownalready resources(forwhich ithas committed funds)in holding the reserve in the military airlift fleet, the government has a financial holdingAlthough reserve capacity inthe Contracting withair carriers tocommit their aircraft towartime needs is As DOD’sprocurementand operations The RANDanalysis pointsoutthattohave Volume 1.Executive Summary. CA.1994.p.21. Monica, RAND.Santa . 18 19 Finding theRightMixof Military overnment rate. DOD also char overnment rate.DODalso ment businessareobliged toflycontracted these with in fraction of the Air Force strategic airlift fleet. Force in fraction ofthe Air III capab CRS-6 ployees,including DODcivilianandmilitary nuary 2005, for example, itwasreportedthat example, nuaryfor 2005, 20 onveniently available, rather thangiverather onveniently available, tofly government ility would have costabout$3billion ghanistan and Iraq.and ghanistan Thepilotprogram is re once activated.RANDpointsoutthat: re rating additional AirForcecargo aircraft. e to increase the size of CRAF in lieu of lieu in ofCRAF size the increase e to U.S.troopsoverseasasthey movedin CRAF isfarmore costeffective than total capacity four tofivetimesgreater and maintenanceaccountscomeunder go to theregion andtosaveDOD go nd had initiated apilotprogram — nd hadinitiated adequate airlift foramajorcrisis, airlift adequate transports troops by civilaircraft. andCivil Airlift,Issuesand ters commercialaircraftto employees onofficial New York Times. York New http://wikileaks.org/wiki/CRS-RL33692 structure overseas, and the growth of the Army’s Future Combat System. Army’s growth ofthe overseas, andthe Combat Future structure theincreaseof92,000ground forces,therepositioning ofDODforce include Command, pointedtochanges that have o testimony, General ArthurL. Lichte,Mobility CommanderAir ofthe AirForce’s would bewelcome. be viewed as something ofan alternative toCRAF, oran indication that more CRAF cargo capacity onregularly scheduled commercial flights. This trial program could costs by creating competition among carriers forthe work,and by leveraging excess (MTM/D) requirement. inDecem Studycompleted was (MCS), strategy. recentairmobility most DOD’s sufficien is forcestructure current whether current air mobility fleet and quantifies future airlift requirements todetermine capabilities (20.5 million tonmilesperday(20.5 capabilities short oftheorganic strategic ofrecordfortheAirForce’sstra program levels required by MCS-2005.As a result, General Lichte stated that the current and other enhancements that were expected tobolster capability ofthe C-5 fleet to DOD hasreducedthenumberofC-5 Incentives toIndustry.” Inside theAirForce. on AirandLandForces,House Armed Transportation Command Posture andAir Force Mobility Aircraft Programs, Subcommittee for more information. Modernization andC-17 Acquisition Issues Structure andForce Airlift Requirements DOD’s Changesin Potential approximately $9 millionper month. 25 24 23 22 21 program. maystructure CRAF the affect strategic airlift requirementsPotential changes and air mobility inDOD’s force carriersamorepr made commercialair attacks ofSeptember11,2001, SeeCRSReportRL34264, SeeCynthia Di forexample, Pasquale. Sherman. Commercia Taps Jason “CENTCOM Ibid, p.4. L. Lichte (USAF), WrittenStatement, Gen. Hearing Arthur on United States DOD Airlift Requirements. DOD The MCS called forthe same levelMCS ofCRAF contribution tototal airlift The The increased scope and and The increasedscope July 21,2006. July Inside theAirForce. 25

pace ofmilitary operationsfollowing theterrorist airlift capability of 33.95 million ton airlift capabilityton of33.95 million have increased theAirForce’s mobilityhave increased needsand Strategic Airlift Modernization: Analysis ofC-5 Airlift Strategic Galaxies Services Committee, April1,2008,p.8. DODperiodically thestateofits examines 21 CRS-7 DOD hopestodramatically reduceitsflight , by William Knightand Christopher Bolkcom “Pentagon Studies CRAF Sustainability and ber 2005.However,during congressional 23 October8,2004. ccurred sincetheMCSwascompletedthat ominent componentofthiscapability. requirementsstudy t tomeet the President’s national security

tegic airlift fleet of of the overall 54.5milliontonmilesper plannedforupgrade withnewengines l Air Carriers to Cut Iraq Costs.” Cargo Cut to Carriers Air l C-5sandC-17sfalls , Mobility Capability 24 miles day Further, 22 http://wikileaks.org/wiki/CRS-RL33692 unlikely toresult inshortfalls ofcommercial aircraft committed toCRAF. DOD requirements.Thus,any foreseeable gradually, andmany view DOD’ to roughly1980s capacityoccurred in 20MTM/Din2005.Further,has thisincrease CRAF tofulfilltotal airlift needs has in year span.As study. omission reducesthevalue ofthe MCSandhave calledforanother, requirements-driven a specificquantitative estimate ofairliftrequi day objective)asrequiredinthepriorstudy. 26 Source: Unlike previous mobility Unlike DOD’s studies, Air Force Magazine, February 2003,p.28. Figure 1.CRAF Require Figure 1 Figure indicates,commercialairc s requirement forCRAFasbeing stableoverthis19- CRS-8 Mobility Capabilities Study2005 creased from roughly 12MTM/Dinthe late ments andCommitments increases in CRAF requirementsare CRAF increasesin rements. Some have asserted that this rements. Someasserted have 26 However,DOD’s projected use of raft committedtoCRAFexceed didnotprovide http://wikileaks.org/wiki/CRS-RL33692 there are no orders for a commercial variant of the C-17. ofthe variant arenoordersforacommercial there fleet couldpotentially hurttheCRAF prog congressional testimony, Gen.Sc ListPriority containedare 12, 2008obtainedthroug Year 2009BudgetFiscal for th on NR/rdonlyres/BAD928B9-0927-4628-BE Appropriations LiaisonOffice, February box020608airlift.htm]. 2008, at 6, [http://dailyreport.afa.org/AFA/Features/modernization/ February 12, 2008obtainedthroug on Fiscal Year 2009Budget for th did itrequestfunding toclosetheC-17production line. Administration’s FY2009 budget request did a fleetof111C-5sand205C-17s. Re-engining Program being reducedand Command, statedthatbase Transportation GeneralNo 2008, inMarch example, to meet potential shortfalls.requirement For current and future strategic airlift 33 32 31 30 29 28 27 of is marketpotential use inheavyfor industry, mining, orsimila Some industry studiessuggest thatacomme “we haveseveralcustomers Inviable? May of2007,Boeing’s C-17 Pr becommercially to aircraft these for market sufficient there However,is fleet. commercial version ofthe C-17 procurement of C-17s difficult to fund,so procurement ofC-17sdifficultto Knight andChristopherBolkcom formore information abouttheC-17. Marc V. Schanz, C-17 MarcV. “The and theAirliftQuestion,” “FY2009UnfundedRequirement Transcriptfrom theHearing oftheSena Ibid. Guy Norris,onlineatFlightglobal.com, May 23,2007. Transcriptfrom theHearing oftheSenate See CRS CRS Report RS22763, See Potential C-17Acquisition. BC-17. reasons thatI believe 205istheright number ofC-17s. the incentives thatwe offerourcommerci because if thatoccurs,itcancompetes in mentioned inmy opening remarks, I cau fleetandthecommercial capability. And asI organic balance between the thatyou holdme accountableforissortofmaintainingthings the One ofthe Because AirForcebudget limitations “upwards of100aircraft.” h [http h [http with money thathavegive Military Airlift:C-17 Program Background ://www.c ://www.c quest for15additionalC-17s. e DepartmentPrograms,Lift ofDefense StrategicMarch e Departmente ofDefense Strategic Lift Programs, March aircraft (BC-17) that might become partoftheCRAF mightaircraft (BC-17) that hwartz cautioned that too large ofanorganictoo cautionedthat airlift hwartz s List,” U.S. Air Force, Air s List,”U.S. 28 Somefavoracquis Further, theAirForce’s FY2009 Unfunded q.com]. q.com]. CRS-9 43-14992CB464C1/0/FY09URL.pdf]. te Armed Services Subcommittee onSeapower recertified by DOD, he believesDODneeds 2008,p.2,at[http://dailyreport.afa.org/ Armed Services Subcommittee Seapower on rton A. Schwartz, Commander ofU.S. rton A.Schwartz, tion aboutoverbuilding theorganic fleet; d ontheC-5Reliability Enhancementand peace timepeace with thatpreferencecargo, r endeavors,whileBo ram inthefuturewhenhestated, ogram Manager,stated, DaveBowman, rcial marketforupto10C-17s may exist al partners.Andsothat’soneofthe not containfunding fornewC-17s,nor me havesuggested thedesign ofa 33 Ontheotherhand,atpresent, Daily Report,AirForceMagazine make additionallarge-scale make n usrequestsforproposals.” 31 ition ofadditionalC-17s

SAF/FMB,Budget and 30 29 However, during However, In contrast,the eing believesthere , by William 27 32 , http://wikileaks.org/wiki/CRS-RL33692 the AirForce’s decisionto theG at [http:// the Government Office, Accountability 11, 2008,at[http://www.boeing.com/ids/ William Knight andChristopher Bolkcom. press/pressstmt-boeing0311.pdf]. summarizes summarizes the airliftcapabilitiesof the capabilityKC-135s to compared has 100days toevaluatetheprotest. the Airbus 330-200 and the KC-767 based Both competitors forthe KC-Xprogram, the NorthropGrumman KC-30based on generation tankerprog next 38 37 36 35 34 Grumman. Theinitial$12.1billionKC-Xcontr CRAF program tomeetsu airrefueling during apotentialcr perform potentiallycould bereduced.However, b day-to-day need forcommercial airlift that participants in the CRAF program provide cargo pallets.Thus,as the Air Force’s cargo capability,oversized buta significant capability totransport passengers and Handbook 2007. [http://www.af.m Sheet, Fact Stratotanker Source: 68 KC-45s alt 219 200 Planned 32 226 Planned 6 No 54 Defensive Systems Pallets Passengers “Tanker Contract Award Announced,”Air AirForceplanstodesignate The itsKC-X tanker astheKC-45A. SeeCRSReportRL34398, GAO Press Statement, “GAO Statement Regarding Protest Filed by Company Protest Boeing with Regarding Statement “GAO Statement, GAOPress Boeing NewsU.“Boeing Release,Protests KC-X Acquisition. KC-X On February 29, 2008, the Air Force awarded the KC-X contracttoNorthrop KC-X the On February 29,2008,theAirForce awarded counterparts, Like theircommercial USAF,Grumman and Boeing. Northrop KC-135 information derived from KC-135 Table 2.KC-135andPotentialKC-XAirlift Capabilities www.af.m 35 ofthe anticipated 179aircraft. il/news/story.asp?id=123088392]. Acquisitiondecisionsrega rges inairliftdemand. Air Force Air Refueling: The KC-X Acquisition Program Acquisition TheKC-X Refueling: Force Air Air C15K-0KC-767 KC-30 KC-135 ram, may alsoaffect future DOD CRAF needs anduse. overnment Accountability Office(GAO). 38 il/factsheets/factsheet.asp?id=110], and the Air Force CRS-10 globaltanker/news/2008/q1/ 080311b_nr.html]. KC-X tankerfleetpotentially grows, DOD’s ” March11,2008,at they areenvisionedtoreplace. KC-135 andpotential KC-X replacements. S. Air ForceTanker C potential KC-Xtanke Force Print News, February 29,2008,online ecause most tankers could beneededto could tankers ecause most 36 isis, DODwouldlikely still relythe on on Boeing’s OnMarch11,2008,Boeing protested act provides for the act providesfor rding theAirForce’s KC-X, 767-2 ontract Award,”March 00, coul [http:// rs willhavelimited purchase thefirst www.gao.gov/ d add airlift Table 2 37 GAO , by 34 http://wikileaks.org/wiki/CRS-RL33692 Maynard. “Pentagon’s Needs respectively. participation over participate. to andwant CRAF value carriers their interest, they wouldnotparticipate. the if voluntary, that appearslogical andit participation canbeinferredtoreflect foreign investment in U.S.airlines, including those that participateforeign inCRAF. investment Aviation Administration (FAA) regulationsmight that potentially lead toincreased sector. private not more commercialairlift, be thatifeconomicconditi benefitincreasingly ofCRAFbeencommercialhas forthesector discussed. It may economic and financial conditions forcommercialcarrierspotentially air worsen, the War Needs Are aLifelineforAirlines.” ex=1208577600&en=f41b5269883e5591&ei=5123&partner=BREITBART]. 2008, at[http://www.nytimes.com/2 Financial Boost.” “actual control” ofaU.S. aircarrierto Rulemaking (NPRM)seeking comments onapr Industrial Base/Financial Assistance toAir Base/Financial Carriers Industrial 42 41 40 39 contribution toournation’sdefense. influenceoverasectorofth increased airline industry,concept of othersopposethe While somesupport the additi continuetoposeathr prices fuel carriers air struggled of because ofalack Source: icat67971161301,262 1,360 1,126 927 657 Aircraft Carriers 3533403735 Seeforexample ScottMcCartney. “Flying forthePentagon Troops Gives Airlinesa Graham Bowley, “Frontier Airlines Filesfor Bankruptcy,” See for example 70 Fed. Reg. 67,389 (November 7, 2005), a Notice of Proposed of Seeforexample 70Fed.Reg. 67,389(NovemberNotice 7,2005),a United,American, Delta,Northwest,US Followingthe terroristattacksof CRAF. in passenger andcargo participate carriers major All Departments of Defense and Transportation. 41 Also, some, including theDOT,haveproposedchanges to Federal Wall Street Journal the last 10years. last the Table 3.RecentCRAF Participation 9820 0520 2008 2007 2005 2002 1998 ons remaindifficult,pressuremay buildonDOD to use Offer Airlines aLift.” necessarily tosatisfy DODneeds,buttosupportthe onal capital that foreign inve foreign onal capitalthat . May 14,2003.MichelineMaynard. “Pentagon’s. beby acitizen of theUnited States. eat tothecommercialairlineindustry. New York Times. York New CRS-11 September 11,2001,many broad support for CRAF. Theprogram is CRAF. for broadsupport e U.S.economy thatmakesasignificant 008/04/12/business/11cnd-frontier.html? Everyair indicationsuggests thatU.S. business and other factors. Today, factors. and other business rising airlines didn’t findparticipation tobe in Airways,FEDEX Southwest,UPS,and Table 3 allowing foreign corporationstoyield oposal to clarify the policy of requiring oposal toclarify thepolicy New York Times. York New illustrates the growth in CRAF December 26,2003. Micheline The New York Times, York New The stment couldbring tothe January 22,2005. January U.S.commercial 39 Thisstrong April 12, 40 As 42 http://wikileaks.org/wiki/CRS-RL33692 the CRAF program through 2013wouldha participate inthe CRAF. The Congressional Budget Office estimated “that extending part oftheAIP, theFAA offersanon-pre Aviation Insurance Program (AIP) fromMarch30, 2008, to December30,2103.As ofSection356isprovidedat April 2008.Anexcerpt required a report tobe delivered committee tocongressional nolater than defense recommendations forpreserving andimp specific make and CRAF andlong-rangewith current associated issues examine to comprehensive andindependent theCRAF (P.L.affected provisions that CRAF onDOD’sinter-theaterairliftfor conduct ananalysis ofinter-theaterair (P.L. 109-364). byauthorized law. However, theprovisi minimum levelsReserveAir Fleet ofbusiness toU.S.Civil carriers than are currently (sec. 1052)thatwouldallowtheDepar Act for Fiscal Year 2008,” January 25,2008,p.12. Act forFiscal Year2008,”January FY2008 43 FY2006 FY2007 mobility fleets and the CRAF. inform forcestructured ofSection1046isprovidedat excerpt exp is fleet requirements.Thisreport specifically includehowtheCRA to force of Defense’s(DOD’s) Congressional Budget OfficeCostEstimate, Second, Section378oftheFY2008NDAA Second, In FY2007, theSenateversionof In The FY2008 NationalDefenseAuthoriza Section 131oftheFY2006NDAAcontaine Third,called1046 Section for a asummary provides section This ofrecent legislation regarding Department the

Summary ofRecentLegislative Activity Civil ReserveAirFleet(CRAF)program. ecisions regarding ofDOD’sorganicthe optimalmix air assessment of CRAF. Th CRS-12 DOD study oftheairlift andmix onthesize ected tobecompletedby January 2009.An lift capabilities to include the impact ofthe the lift capabilitiestoinclude the FY2007NDAAcontainedaprovision ce structurerequirements(P.L. 109-163). mium insuranceprogram toaircarriers that Appendix B Appendix on wasnotadoptedinthefinallegislation roving theprogram. TheFY2008NDAA 110-181). First, Section356calledfora “H.R. 4986: National Defense Authorization “H.R.4986:NationalDefense tment of Defense toguarantee highertment ofDefense F couldpotentially affectDOD’sairlift ve nosignificant budgetary impact.” tion Act (NDAA) containedthree tion Act(NDAA) d aprovisionthatrequired DOD to extended authorization of the of authorization extended . Many thisstudy expect to Appendix A is assessmentdesigned . 43 http://wikileaks.org/wiki/CRS-RL33692 to H.R.1585statedthefollowing: Appendix A. FY2008NationalDefenseAuthorization (b) Contents ofAssessment- assessmen The Independent (a) Assessment Required- The • VIABILITY AIR FLEET OFCIVILSEC. 356.INDEPENDENT ASSESSMENT RESERVE each ofthefollowing: Section 356 of the Conference Report (H.Rept. 110-477,December6,2007) (H.Rept. Report 356oftheConference Section Secretary. byconducted afederally-funded researchanddevelopmentbythe centerselected an independentassessment oftheviability 2, and3— date oftheenactment ofthisAct, includi viabilityprojected oftheCivil Reserve Air Fleet5, 10, and 15 years afterthe viability asofthedate comparessuch (2) A strategic theviability assessmentof of thisAct,including anassessment of— (1) An assessment oftheCivil Reserve Air Fleetasof the dateof theenactment Act (P.L.110-181),Section356 in subparagraph (B). subparagraph (A)andaircarrierparticipationdescribed in described (C) acomparison betweentherequirements oftheDepartment Fleet; and Civilthe Reservein (B)participation anassessment Aircarrier of air and training requirements; Department’s organic airliftcapacity, logistics concepts,andpersonnel plans,including any anticipatedchangescontingency inthe Reserve AirFleetforthesupportofoperationaland Civil the for an examination(A) oftherequireme resulting inincreased demand by theDepartment ofDefense. operations expansion oftheindustrycontingency inresponseto ca air (D) any risks tothecharter Fleet isnotactivated; and a contingency operationforwhichtheCivilof Reserve Air support duringperiods whichth and during ofsuchpolicyand theeffects ontheaircarrierindustry inpeacetime maythe with earnundercontracts incomeparticip asinglecarrier air (C) any policy Secretary ofthe of Defense tolimit thepercentage of attacks ofSeptember 11,2001; increased global mobility requirements inresponsetotheterrorist Department the of ofDefensetransportationrequirements asaresult (B) the extent ofcharteraircarrier attacks ofSeptember 11,2001; increased global mobility requirements totheterrorist inresponse transportati Department ofDefense (A) thelevel ofincreaseduse CRS-13 t required by subsection(a)shallinclude required t oftheCivil ReserveAir Fleet tobe Secretary ofDefenseshallprovide for of theenactment ofthisAct with the ng for activations at eachofstages 1, oftheCivil Reserve Air Fleet that participationin fulfilling increased ating intheCivil Reserve Air Fleet Secretary during any calendaryear on requirements asaresultofthe nts oftheDepartment ofDefense e Armed Forcesare deployed in rrier industry asaresultofthe commercial assetstofulfill http://wikileaks.org/wiki/CRS-RL33692 (c) Submission toCongress- Uponthecomp required undersubsection(a). under subsection(c),theComptroller Genera (d) Comptroller General Report- Not later congressional defensecommittees areportontheassessment. thanApril1,2008,theSecretary shallsubmitlater tothe not by and subsection (a) purchase amount during peacetime. the Civil Reserve AirFleet program, in including an assessment ofpotentialince (4) Recommendations forimproving theCivil Reserveprogram, Air Fleet viability, including — ofany(3) An examination perceived barrierstoCivil Reserve Air Fleet limit commercial shipping optionsforcertainroutesand package sizes. imposed by(H) theSecretary theeffect of limitations ofDefense to to encourage internationalcodesharing andalliances; (G) theeffectofpolicy by initiatives theSecretary ofTransportation handling by theDepartment ofDefense; hazardous duty pay, incargo routing delays, andinefficiencies asaresultof (F) increasedoperationalcostsduring activation (E) increasedforeign ownership during periodsofCivil Reserve AirFleetactivation; routes overseas (D) theeffectonUnited Statesaircarriersoperating Program; (C)War Risk thelong-term Insurance affordability oftheAviation (B) thereward system oftheCivil Reserve Air Fleet; (A) theoperationalplanning system CRS-14 than 90 days afterthereportissubmitteddays than 90 l shall conduct a review oftheassessment letion of the assessment required under letion oftheassessment required cluding establishingminimum a annual of United Statesaircarriers; ntives forincreasing participation in oftheCivil Reserve Air Fleet; http://wikileaks.org/wiki/CRS-RL33692 minimum, the following: the minimum, (d) Elements ofStudy Plan- study The plan studyplan. The planshallbedeveloped asfollows: study(c) StudyPlan- requiredbyThe subs and expertiseinconducting similar studies. subsection (a), afederally fundedresearch anddevelopment centerthat has experience Secretary The shall select,tocarryFFRDC- outthestudy requiredby (b) Useof timeframes: fiscalyear study 2012,2018,and2024.The shall— airlift assetstomeet theNational M andintertheater on alternatives forthepropersize andmix offixed-wing intratheater (a) Study Required- Secretary The of Defe ONSIZESEC. 1046.STUDY ANDMIX OFAIRLIFT FORCE. to H.R.1585statedthefollowing: Section 1046of the Conferen Authorization Act (P.L.110-181),Section1046 (2) analyze the full-spectrum (2) analyze lifecyclethe co (1) focus onorganic and commercially programmed airlift capabilities; regarding the following: tomeetrequired theNational Military Strategy, including assumptions (1) Adescriptionofliftrequirements a explain thereasonsfornotdoing so. not incorporateoneor modifications do those modifications.de reportshall The submitcongressional tothe Secretarythe defensecommittees and areporton under paragraph (2)andshall,notlaterthan45days afterreceivingreport, that centershallmodify(3) The study the considers appropriateforimprovements tothestudy plan. that review andprovides any recommendationsGeneral thattheComptroller the Secretarysubmitto andthecent plan, methodology,or scope and shall,notlaterthan30days afterreceivingstudy the orweaknesses in flaws any it iscompletehas andwhetherit andobjective, (2) The Comptroller General shallreview Comptroller General oftheUnited States. defensecommittees,study plantothecongressional theSecretary, andthe shall, not later than 60days aftertheda develop thestudy planand shall centerselectedundersubsection (b) (1) The III. and II, I, stages activation during Fleet Air Reserve Civil (3) incorporatetheaugmentation capab KC-10, KC-135R, Cargo C-130E/H/J, Joint Aircraft;and organic models ofeach the following aircraft: C-5A/B/C/M, C-17A, KC-X, Appendix B.FY2008NationalDefense ce Report (H.Rept. 110-477, D CRS-15 ilitary Strategy foreachofthefollowing nse shallconductarequirements-based study ection (a)shallbecarriedoutunderastudy required by subsection(c) shalladdress,at plan toincorporatethe recommendations nd operating profiles for airliftaircraft te ofenactment ofthisAct, submit the more oftherecommendations, shall ility, viability, andfeasibility ofthe er a report that contains the results of results the er areportthatcontains scribe eachmodification and,ifthe thestudy plan todetermine whether sts ofthevarious alternatives for ecember 6,2007) http://wikileaks.org/wiki/CRS-RL33692 including assessments ofthefollowing: the currentairliftfleetofAir Force, of state (2) An evaluation ofthe (C) Potential changesrequire inlift (B) Theplannedforcestructuregrowth ofthemilitary services. (A) Current andfuturemilitary combat andsupportmissions. fleet oftheAir Force, toincludethefollowing: C-5 andC-17of aircraftforthestrategicmix airlift (C) Theoptimal requirements ofmeeting theNational Military Strategy. mission demands consistentwiththe well asdomestic and training combatto supportfutureexpeditionary andnon-combat missions, as a minimum of299strategic airlift airc adequacy ofthe currentair The (B) that fleet. operations isaffecting theprogrammed lifeoftheaircraft service (A) extenttowhich The theincreased participant. streamlining of operations, efficiency management restructuring inres augmentorganic fleetasit the (K) An assessment oftheCivil Reserve Air Fleet toadequately augment organic forcesinbothfriendly andhostileenvironments. Theviability(J) andcapability oftheCivil ReserveAir Fleet to national emergencies. (I) Air mobility requirements in and humanitarian missions. mobilityAir(H) requirements insupportofworldwidepeacekeeping Initiative oftheDepartment ofDefense. (G) Air mobility requirements associatedwith theGlobalRebasing future military scenarios. of Civilavailabilityapplication The Reserveand (F) Air Fleet assetsin mission supportroles. of intertheaterlif (E) Theutilization intratheater lift. expected utilization ofsuch the (D) New capability in airlifttobepr the FutureCombat Systems by theArmy. and service life of the C-5A/B/C/Mand service life aircraftandtheC-17 (ii) Themilitary capab C-17 aircraft. C-5Athe andC-5B/C aircraftfl cost-effectiveness(i) The ofmodernizing various iterations of CRS-16 ility, operationalavailability, usefulness, ponse tofuturecommercial markets, support of homeland support defense and capability, including itsusein ments,including thedeployment of lift force, including whether or not lift force,includingor whether relates tocommercial inventory ovidedbythe KC(X) aircraftand raft for the Air Force is sufficient raft fortheAirForceis t aircraftinintratheatercombat use of airlift aircraft in on-goinguse ofairliftaircraft measures, ordownsizingthe of eet versus procuringadditional http://wikileaks.org/wiki/CRS-RL33692 (3) Eachanalysis requiredby paragraph (2)shallinclude— to include— optimaland service mixlife usefulness, ofintra-theater airliftaircraft, (E) Assessing the military capab diminished manufacturing sources. versussuppliers, contractorlogisticsorganicmaintenance, support and tooling,facilities, industrialbase production work force,production Such analysis andassessment dealwith issuessuchas should could berestartedifnecessary, including — ensurethattheproductionlineforC-17should take aircraft to fortheactionsthatDepartmentrecommendations of Defense C-5 aircraftafterhaving closedthelineforseveral years, and in Force the experienceofAir (D) An analysisthat may andassessmentlessons ofthe belearnedfrom of thecombatant commander andcomponent commands. C-130E/H platforms tomeet intr versus procuring additional C-130J platforms or refurbishing the cost-effectiveness(ii) ofprocuringC-17aircraft additional combatant commander and component commands; and tomeetplatforms intra-theater airliftrequirements ofthe versus procuring additional C-130J orrefurbishing C-130E/H (i) thecost-effectiveness ofpr that experience. theproductionlineforC-17opening aircraftinview of costsandrisks ofclosing andre- employed andtheexpected methods(ii) anassessmentthe andactionsthatshouldbe of the C-5 aircraft; were incurredinclosing andre-opening theproductionlinefor (i) ananalysis ofthemethods thatwereused andcoststhat remain aviable augmentation option. it impede theability ofCivil Reserve Air Fleet participantsto to includeairrefueling aircraft (iii) Atfleet inventory what specific for each organic aircraft, capable rates,ineachofthefollowing cases: such as aircraft availability rates,departureandmission aircraft. Such anassessment shallexamine appropriate metrics, supported by thecost-effectiveness analysis. ofeachprogramcontinued execution isnolonger such program being consideredthepointat which the engining Program, with partialcompletion ofeither Program Enhancement andthe Reliability andRe- (II) Partial completionAvionics ofthe Modernization engining Program. Program theReliability and Enhancement andRe- (I) Completion oftheAvionics Modernization CRS-17 restartingthe productionlinefor ility, operationalavailability, ocuring the CargoJoint Aircraft used in the airlift role, would airlift the used in a-theater airliftrequirements http://wikileaks.org/wiki/CRS-RL33692 shall includeaclassifiedannex. shall besubmittedreport inunclassifiedform,The study(a). but requiredbysubsection shall submit to theSecretary andthecongressional defensecommittees a report on the 10,2009,thecenterselectedundersubsection(b) January (h) Report- Notlaterthan Department ofDefense. the centershallcollaboratewithCo and constructing(a) theanalysisbysubsection requiredby(a)(2), required subsection (g) CollaborationWith CostAnalysis Improvement Group-study In conducting the Command. commandethe center shallcollaboratewith required by reportrequiredby subsection(a)andpreparing subsection(c)(3),the the (f) Collaboration WithUnited Command- StatesTransportation In conducting thestudy organic aircraft. testing data collected on modernization, recapitalization, andupgrade effortsofcurrent Viability Board Reports orspecialaircrafta Airlift Capabilities Analysis, andotherappropr Fleet Mix Analysis, theIntra-theater Lift the resultsof2005MobilitySt Capabilities (e) Utilization of Other Studies- The study required by subsection(a)shallbuildupon versus theprogram ofrecordairliftaircraftfleet. the optimally and risk mixed associatedwith fleetofairliftaircraft making theprogram lifecycle cost estimates and a comparison of cost (B) acomprehensive statement of the data and assumptions utilized in and the study regardingaircraft performances andcargo loading factors; (A) adescriptionofthe assumptions and sensitivity analysis utilized in CRS-18 Capabilities Study, Future Theater theJoint ssessments. Thestudy shallalsoincludeany st Analysis Improvementst Analysis Groupofthe r oftheUnited States Transportation udies, the on-goingudies, Intra-theater Airlift iate studiesandanalyses, suchasFleet