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Kit Menkin’s Leasing News
www.leasingnews.org Thursday, May 9, 2002 Accurate,
fair and unbiased news for the equipment Leasing Industry
Headlines---- Bancorp
Group To Sell $16 Million Portfolio
Thursday---Odds and Ends
(1Lease-John Kruse- Martin J. Barteske
Recession Not Over-Zagat On Line-
Crabfeast June 11—“Archie”-MAEL Golf)
Weak Labor Market Continues to Drive Expansion Down
Vendor Financing Conference,Chicago This Fall
IOS Capital, IKON'S Captive Leasing
Study: Air Force Lease Plan Costly House
panel answers Amtrak's pleas for $1.2 billion to avoid route cuts
Good News !!!! Coke debuts new vanilla flavor at Connecticut cafe ###
Denotes Press Release ------------------------------------------------------------------------------------------------------ Bancorp
Group To Sell $16 Million Portfolio Bancorp
Group, a Michigan based small and mid size ticket leasing company
announced that it is putting its $16 million dollar lease portfolio
up for sale. Leasing
News readers all say “watch out.” A few are really quite
critical of
the problems in involved. Organized
in 1986, Bancorp Group was acquired as a wholly-owned subsidiary
of New Century Bank, Shelby Township, Michigan, in 1999. On March
28, 2002, New Century was closed by the Michigan Commissioner of
the Office of Financial and Insurance Services and the Federal Deposit
Insurance Corporation was appointed Receiver. The
portfolio includes active true leases, leases in extended pay status,
a number of leases subject to a master sale-leaseback agreement,
and charge offs. Buyers
are forewarned, there are no guarantees and alleged many hidden
problems. A sealed
bid sale will be conducted by the FDIC, with due diligence beginning
May 20. Information will be available electronically and at the
Bancorp offices at 46719 Hayes Road in Shelby Township. The bid
deadline has been set for June 12. For more information contact
Louis Schneider, FDIC Resolutions Specialist, at 586-532-5400 (lschneider@fdic.gov)
or visit the FDIC web site at www.fdic.gov.
Leasing
News brings this to your attention as a public service, not as a
recommendation.
The founders of Bancorp are not included in the sale. ----------------------------------------------------------------------------------------------- Thursday---Odds
and Ends 1Lease For
all of those who remember 1Lease, Sean Wheeler, who sold the franchise
and wet
into the wet pet business. “Michael's
Floral is a $5 Billion dollar a year company. And Steve Ballards
title is one that Mr. Finster I'm sure could not even apply for.
Steve has 15 years of corporate finance experience. Joke / not a
Joke who cares the reality is that One Lease does have over 240
satisfied brokers if you don't like us go somewhere else. We don't
need anyone’s business that bad. One Lease increased sales
in 2000 by over 136% from 1999. Anyone that would like to compare
financial statements for year end 2000 please feel free to call
and then we will see who the joker really is. Our statements are
audited by the firm of Arthur Anderson. Sean
Wheeler, CLP 1
Lease Corp. 800-996-7440
800-977-4666-fax
www.1lease.net
Didn’t
realize Arthur Anderson did their books---anyway, his e-mail has
come back. He
is evidently no longer around. Nor does the web site open up.
We will have to
up-date the Leasing News list. Editor. ----- John
Kruse Says “Thanks.” Thanks
for the story (CapitalStream Selects TIBCO Software.) I bet you
did not know that CapitalStream is the program being utilized by
Merrill Lynch ( http://www.ml.com/index.htm ). Merrill described
the product as 'FinanceCenter' which is correct, but most of the
industry does not know the product name relative to our company
name. Also,
I made some great contacts in Vegas re: the Fall San Diego Conference.
I think “Top
Gun” is shaping up to be a doozy! I know you are working on
two panels, one
for salesmen who have W2’s showing they make over $250,000
a year, and
the other, the top leasing sales managers in our industry. With
the sales workshops
and activities for spouses, too, this will be the best conference
ever!!! Thanks
again, ----
Martin
J. Barteske Yes,
he is still around. We are looking into a complaint regarding $40,000
not returned
to an applicant from a transaction a month and a half ago with
allegedly many
broken promises. The applicant found us in a web search. Although
he has changed the name of his company, he found the Bulletin Board
Complaint about Lease Capital and Mr. Barteske.: http://www.leasingnews.org/bulletin_board.htm ----- Recession
Not Over I
am a very loyal reader of your daily publishing. I work for a third
party lessor
in Austin, Texas. About 80% of our business is direct marketing.
Most of
our transactions a well over $100K and above. I just read and keep reading
how this recession was very mild, not to difficult, etc,etc. Excuse me?
Most of the people I have talked to on a daily basis, business owners, CFO's,
CEO's) have reported unbelievable losses, layoffs and asset purchasing
down to nil. Can some one tell me how this recession is over and how
it is already making a turn for the better? I think some of the prognosticators
need to get off their rear ends and come down to Austin, Texas,
Dallas, Texas and Houston, Texas and tell me with a straight face, "We
are ok"... Thank
you , Alan
J. Schwab ---
Zagat
On Line Kit, Thanks
for letting us know about Zagat on line. For folks who love eating good
food like you and me that's important! I ended up getting my son
and his
wife a gift certificate to Brennans of Houston because the articles
I read
said that it was as good as the one in New Orleans. By
the way, my son said that Marks was one of the best restaurants
he has eaten
at, and certainly the very best in Houston. Regards, Helene Executive
Solutions For Leasing and Finance, Inc. Helene
G. Kugit 10
Timberdale Drive Holmdel, NJ 07733 732.332.1524
Fax: 732.332.1525 helenekugit@exsolutions.com
http://www.exsolutions.com (I
am on Mark’s e-mail list, and was notified about a special
Mother’s Day celebration. I
sure wish I was in Houston, because that is where I would be this
Sunday. Editor ). ---
Crabfeast
June 11
What is becoming the premier lease networking event in the Middle
Atlantic States, the EAEL fourth annual Networking Crabfeast will
be held at Gunning's Seafood Restaurant, 7304 Parkway Drive, Hanover,
MD on Tuesday, June 11, 2002. Registration starts at 4:30 pm and
the Crabfeast is from 5:00 to 8:00. Hosted by Dennis Horner of
The Equipment Leasing Company and Nancy Pistorio, CLP of Madison
Capital, LLC, anyone who has ever gone to a real Maryland crabfeast
will not be disappointed by the all you can eat steamed crabs and
beverages and all the trimmings.. The cost for members of any leasing
association is $65 and non-members are $90. We expect close to
150 people from the industry to attend. Best of all, if you are
driving from out of town, drink all you like because there is lodging
right next door. Call Alison Pryor at the EAEL office
at (914) 381-5830 for all details or by email at amfnyc@aol.com. Steven
B. Geller, CLP Leasing
Solutions LLC 20
Dike Drive Wesley
Hills, New York 10952 845-362-6106 fax
845-354-2803 cell
914-552-0842 ---
Readers
are still talking about “Archie” Big
Boy is adorable! Shari
L. Lipski, CLP Marketing
Manager Edwin
C. Sigel, Ltd. Lease
Portfolio Managers & CPA's slipski@edwinsigel.com 800-826-7070
ext. 111 847-291-1190
Fax --- If
Archie is looking for a new name, I suggest Rafael Sabatini (one
of the names
used by Nick in the Herb Gardner wonderful play and movie, A Thousand Clowns).
This is one of my favorite movies of all time (late 60's starring Jason
Robards as a man with difficulty being responsible. He was a hero
when I
was 18 and first saw the movie. He was less sympathetic when I was
older.) Nick
didn't have a last name so his mother didn't give him a first name. Since
he could chose his own name he went through a long string (including some
dog names) and was briefly Rafael Sabatini. It has such a great
ring to it! Barbara
Low President BIBLIO.TECH P.O.
Box 657 Lincoln,
MA 01773 bibliotech@leasingsourcebook.com (
Rafael Sabintini Julian---has a nice ring to it. But as far as “Archie,” the
pictures show it is a perfect name for him. ---
Big
Boy is adorable! Shari
L. Lipski, CLP Marketing
Manager Edwin
C. Sigel, Ltd. Lease
Portfolio Managers & CPA's slipski@edwinsigel.com 800-826-7070
ext. 111 847-291-1190
Fax
_____
STOP
THE PRESSES !!! [WEDNESDAY
- BLOOMING GROVE, NEW YORK] In a major departure from traditional
Bull Terrier naming conventions, canine juvenile, Archie, has filed
papers today changing his name to "Special Agent Richard Reinhardt" (AKA
"Rick"). A long-time fan of Humphrey Bogart, Rick has
also moved to have
Keystone Equipment Leasing, Inc. alter its DBA to "Rick's Place." Attempts
to reach Resistance leader Victor Lazlo for comment have been unsuccessful. Seriously,
Kit, thank you so much for publicizing the Bull Terrier Club of America's
Rescue Support operations (pictures of Rick and the BTCA story are at
http://www.keystoneleasing.com/newkid.html). This breed is so special, and
your getting the word out about the rescue group is very much appreciated. Regards, Barry
Reitman baldguy@keystoneleasing.com KEYSTONE
EQUIPMENT LEASING, INC. The
Bull Terrier Club of America rescues approximately 75-125 dogs each
year. The combination of intelligence and sweet sensitivity that
make them such wonderful companions, means that Bull Terriers in
need have special requirements. Your check made payable to "BTCA
Rescue" will be a blessing. It can be sent to:
Glenna Wright
BTCA Rescue Support Chairman
PO Box 1828
Glenwood, AR 71943 If
you know Bull Terriers, you know that within that massive, muscular
chest is a soft, sweet heart. The Bull Terrier Club of America
Rescue Support group cares for dogs that, because of reasons such
as death of the owner or financial distress, are in need of a new
home or other care. --------------------------------------------------------------------------------------------------
###
#############################################################3 Weak
Labor Market Continues to Drive Expansion Down (
this greatly affect leasing of office products, FF&E, computers
) BOSTON,
/ -- A national survey of the North American office market has identified
the top ten key trends that are contributing to today's unsettled
outlook for commercial real estate. The survey was conducted by
Colliers International for the first quarter of 2002. 1.
Occupancy levels continue to drift lower across most markets. --
For Q1
absorption registered -15.5 million square feet (-21.6 msf in
Q4),
the 5th consecutive quarter of negative absorption. This helped
drive
the national office vacancy rate to 14.9%, 0.9 percentage points
higher than that recorded at the end of 2001. This trend of rising
vacancy is expected to continue for another two quarters. 2.
Office rents maintain downward trend. -- During the first quarter
Class
A downtown asking rents fell 2.4% to average $37.20 per square
foot.
Similarly suburban rents also dropped during the quarter falling
by 3.4% to average $25.50 per square foot. In many markets a proliferation
of sublease space is leading rents lower. 3.
Sublease space a major factor in many markets. -- Sublease space
continues
to pile up in many markets increasing by 10.2% during the quarter,
however this represented significantly slower growth than the
15.2% recorded in Q4. Corporate America remains in a cost cutting
mode with an emphasis on cutting unnecessary expenses where possible
and so any underutilized real estate is being returned to the
market in the form of sublease space. This trend is also expected
to extend into the 2nd and 3rd quarters. Of significance, much
of the available sublease space has terms of 2+ years, is high
quality
"plug & play" space and a credit worthy sub-landlord,
all acting
as a credible alternative to direct space. 4.
Job losses remain a dominant theme in the economy. -- While Q1 GDP
growth
registered a robust 5.8% and numerous other indicators suggest
a
strong recovery, job losses in January, February and March suggest
a
fairly weak labor market. For much of the first quarter, announced
job
losses remained prevalent particularly in the telecom and financial
services sectors. 5.
"See through" buildings spotted in select markets. --
With 25.1
million square feet of new construction (43.2 msf in Q4) brought
on-line
in the first quarter and another 80 million square feet coming
on-line in the next year or two, select markets are now experiencing
"see through" buildings with new developments 100% vacant.
Most can be found in previously highflying tech markets. 6.
Pendulum has swung firmly in tenants favor. -- Tenants are back
in the
drivers seat often with an overwhelming number of options. With
tenants
increasingly trying to time the market, many feel now is the time
to renegotiate leases even with expiries more than two years off.
Current leasing activity is characterized by lease terminations
and
not growth. 7.
Landlords fight to maintain occupancy. -- For most owners and
landlords
keeping their respective buildings full is the main priority.
This includes negotiating early and being proactive with tenants.
Evidence suggests tenants are willing to pay a premium to sign
long-term leases. 8.
Flight to quality vs. flight to value. -- The flight to quality
is increasingly
being replaced by a flight to value. As part of their cost
cutting efforts, tenants are focused on the inherent value of
office
premises and not the prestige of Class A office space at a reduced
rate. This is reflected in the Q1 Class A vacancy rate which
moved
higher than the combined B/C rate. 9.
Leasing market characterized by small tenants. -- Large users of
office
space were largely absent from the market in Q1. Markets, both
big and small, reported a dearth of large lease transactions. More
prevalent, however, were smaller transactions in the 4,000 to
8,000
square foot range. 10.
Owners/investors remain confident of office real estate. -- Most
owners/investors
appear to be looking through the current slowdown and
into the recovery stage. Many believe a demand recession (ie.
negative absorption) will lead to a shortened recovery compared
with
the more traditional overbuilding scenario. Furthermore, tenants
are feeling the pain not owners. And lastly with the industry
well capitalized and little workout activity the ownership side
looks set to weather the current downturn. Data
for over 50 U.S. and eight Canadian cities is available by contacting
Ross Moore, Vice President, USA Director of Research Colliers International
at 617.896.7611 or by visiting www.colliers.com . Data includes
numbers for the first quarter of 2002 for downtown and suburban
office markets for all inventory and for class A inventory, and
for office investment in the U.S. and Canada. Colliers
International is a global partnership of more than 40 commercial
real estate firms. The organization's 6,600 employees span the
world in more than 234 offices in 51 countries. On a worldwide
basis, Colliers manages 442 million square feet, and has revenue
of $US 800 million. For more information about Colliers International,
visit our website at www.colliers.com . #############
#####################################
Odessa
Technologies announces live deployment of LeaseWave at NCMIC
Philadelphia,
PA: Odessa Technologies, Inc., providers of cutting-edge software
solutions for the leasing industry, announced the live deployment
of LeaseWave, their Internet-based lease operations management technology,
at NCMIC Chiropractic Solutions. LeaseWave will cover all NCMIC’s
lease accounting and asset management needs. In addition, via its
unique Web-based platform, it will work towards streamlining the
company’s leasing process. At
its core, LeaseWave is a comprehensive lease accounting and asset
management solution, built to address the portfolio management needs
of the modern lessor. Yet, unlike traditional client-server systems,
it is designed to maximize – as opposed to merely maintain
– the lessor’s data-rich back-office. LeaseWave is sold
with a customizable suite of websites that work towards bringing
the entire leasing operation online in a friction-free, real-time
environment. Lessees, for instance, have the option to get any
information they have access to on their leases, via the exclusive
Lessee Access Interface. They can download invoices, get account
balances, make payments, manage their cash flows, track their assets
(including comprehensive asset location information for property
tax), monitor lease-maturity and even run lessor-designated reports.
Similarly, sales staff can be allowed to access the system from
anywhere they can connect to the Internet. During negotiations,
they can obtain historic data about the lessee to make informed
decisions for new business opportunities. Furthermore, by accessing
a dynamic, real-time website made specifically for them, Funding
Sources can independently track the leases that they have invested
in. “The leasing process,” says Greg Cole, CFO of NCMIC, “has traditionally been filled with disparate, disconnected parties. LeaseWave was the only technology in the market that we could find that helped to facilitate and streamline our entire leasing operation. Through its Web-based interfaces, it goes well beyond its ‘line of duty’ as an accounting product. Our lessees, particularly our corporate ones, love that they can manage their leases online themselves.” “It
is extremely satisfying to learn that we have improved business
processes at NCMIC. That was what LeaseWave was built for –
not just to help with accounting and asset management, but to create
a significant value-add proposition for today’s lessor. The
days of simply storing back-end data in traditional accounting systems
are well and truly behind us. LeaseWave provides lessors with a
scalable, secure tool to leverage their back-office,” says
Jay Mehra, COO at Odessa. About
NCMIC
About
Odessa Technologies, Inc.
Odessa
Technologies, Inc. is the maker of LeaseWave(c), a completely Internet
based Lease operations management system for the Lessor. LeaseWave
technology, at its core, handles Lease Accounting and Asset Management.
In addition, it provides a full eCommerce solution and interactive
interfaces for Lessees, Funding Sources, Potential Customers, Vendors
and other Third Parties. The technology aims to bring the entire
leasing operation online, allowing lessors to conduct business in
real time with their business partners. LeaseWave is marketed via
an ASP (Application Service Provider) service through subscription
or as a fully licensed system residing on the Lessor's internal
server. Jay
Mehra <jay@odessatech.com> ####
#################################### ##################### Manufacturers
Seeking Equipment Financing Partners to Meet Sept. 19-20 Manufacturing
Association Policy Leader to Present Pro Growth Agenda At Vendor
Financing Conference In
Chicago this Fall Media
Contact: Susan
Carol, APR 540-659-4038 scapr@technologywriters.com WASHINGTON,
D.C., May 8--The economic outlook for American manufacturers and
the role of tax relief in ensuring continued and sustained economic
growth will be presented by Keynote Speaker Dorothy Coleman, vice
president of tax policy for the National Association of Manufacturers
(NAM), at the second annual Vendor Leasing and Financing Conference in
Chicago on Sept. 19. The two-day national event is designed for
manufacturers who seek to learn how offering equipment financing
to their customers can improve both sales and profits. It is sponsored
by The Alta Group, an international consultancy,
along with the Structured Finance Institute. The
event, to be held at the DoubleTree Guest Suites on Michigan Avenue
in Chicago, is expected to attract CFOs, treasurers and other senior
management from more than a hundred manufacturing and equipment
leasing firms, as well as representatives from accounting, legal,
banking and consulting organizations. Coleman
plans to outline NAM’s pro-growth tax agenda and recent legislative
victories. However to fuel more capital investment, the keynote
speaker said there is still the need for greater reform in capital
cost recovery and international taxation, along with the repeal
of the Alternative Minimum Tax. NAM
represents 14,000 manufacturers in an industry that heavily influences
America’s economic recovery. Key national indicators suggest
manufacturing is leading America out of its economic recession,
and equipment and vehicle financial solutions are in demand as a
strategy to boost sales. Last
year’s event was coming to a close on September 11th when the
World Trade Center and the Pentagon were attacked by terrorists
the nation’s psyche and economy have since been impacted tremendously.
This year, Program Chair John C. Deane plans to comment on the economic
impact of the terrorist attacks, as well as the effects that the
Enron collapse and new tax legislation have had on investment and
financing decisions. The
value of equipment financing as a sales builder will be the focal
point of the conference. Attendees will learn from experienced executives
how productive relationships between equipment financing organizations
and manufacturers will benefit their businesses, as well as learning
how to correct any potential problems that may occur throughout
the relationship. Agenda
topics include: -
Domestic/International Equipment Leasing/Financing Program Alternatives -
Panel Discussion: Why Consider a Captive Leasing Program? -
Captive Finance Programs: The Lessor's Perspective -
Ratings Agency Considerations for Captive Financing Programs -
Investment Community Considerations -
Captive Funding Alternatives -
Key Accounting Issues in Vendor Financing Programs -
Risk Management Considerations -
Back Office and Systems Requirements -
Building and Managing a Global Strategic Leasing Program Other
program chairpersons are Jeffrey Dorn, president of Sony Financial
Services LLC, Woodcliff Lake, N.J.; and Vincent D. Rinaldi, president,
Information Leasing Corporation, Cincinnati, Ohio. Other
invited speakers are from the Equipment Leasing Association, IBM
Global Financing, The Toro Company, Key Equipment Finance, Moody's
Investor Services, and Ernst & Young, among several other firms. The
registration fee is $1,395 or $1,295 if before Aug. 19. ELA and
NAM members receive a special discounted rate of $1,045 or $970
for early registrants. Call (914) 686-8855 or email info@atlas-sfi.com
for sponsorship, registration or speaker
details.
-30- About
The Alta Group The
Alta Group (www.thealtagroup.com) is a leading source of corporate
consulting and advisory services, education and training to the
global equipment leasing and finance industry. It is composed of
12 principals former CEOs, company founders and industry organization
leaders--who have more than 200 years of combined experience. Based
at Lake Tahoe, Nev., it was founded in 1992 by John Deane, John
Giddens, Bill Montgomery and Norm Chapman. About
Structured Finance Institute (SFI) The mission of the institute
is to increase understanding of cross-border financial products
and services. Based in White Plains, New York, SFI annually produces
domestic and international conferences on tax, legal and accounting
topics. Founded in 1998, SFI also produces newsletters and other
publications for corporate executives, investors, accountants, bankers
and tax and legal specialists. For more information visit www.atlas-sfi.com. ------------------------------------------------------------
##################
###################### ############################# IOS
Capital, IKON'S Captive Leasing Arm, Prices Convertible Subordinated
Notes VALLEY
FORGE, Pa--IKON Office Solutions (NYSE:IKN) continues to grow and
announces. that IOS Capital, a wholly owned subsidiary of IKON,
has entered into an agreement to sell $300,000,000 aggregate principal
amount of its 5% convertible subordinated notes due 2007 in a private
placement. The
notes are convertible into the common stock of IKON Office Solutions
at a conversion price of $15.03 per share and are redeemable after
May 9, 2005 at the option of IOS Capital. IOS Capital has also granted
the initial purchasers an option to purchase an additional $50,000,000
aggregate principal amount of notes. The
offering is expected to close on May 13, 2002 and the proceeds will
be used for general corporate purposes, including the repayment
of certain indebtedness. The
convertible subordinated notes have not been and will not be registered
under the Securities Act, and will be offered and may only be sold
to qualified institutional buyers in accordance with Rule 144A and
to non-U.S. persons outside the U.S. in accordance with Regulation
S under the Securities Act of 1933. The
IKON common stock issuable upon conversion of the notes has not
been registered under the Securities Act and may not be offered
or sold except in compliance with the registration requirements
of the Securities Act or pursuant to an exemption from the registration
requirements of the Securities Act and applicable state securities
laws. This
press release does not and will not constitute an offer to sell
or the solicitation of an offer to buy the convertible subordinated
notes, nor shall there be any sale of the convertible subordinated
notes in any state in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities
laws of any such state. IKON
Office Solutions is one of the world's leading providers of products
and services that help businesses communicate. IKON
provides customers with total business solutions for every office,
production and outsourcing need, including copiers and printers,
color solutions, distributed printing, facilities management, imaging
and legal document solutions, as well as network design and consulting,
and e-business development. IOS
Capital, LLC, a wholly owned subsidiary of IKON, provides lease
financing to customers and is one of the largest captive finance
companies in North America. With Fiscal 2001 revenues of $5.3 billion,
IKON has approximately 600 locations worldwide including the United
States, Canada, Mexico, the United Kingdom, France, Germany, Ireland
and Denmark. This
news release includes information that may constitute forward-looking
statements within the meaning of the federal securities laws. These
forward-looking statements include, but are not limited to, statements
relating to the terms of the convertible subordinated notes and
the proceeds IOS Capital, LLC may receive from the offering of such
notes. Although IKON believes the expectations contained in such
forward-looking statements are reasonable, it can give no assurances
that such expectations will prove correct. Such
forward-looking statements are based upon management's current plans
or expectations and are subject to a number of risks and uncertainties,
including, but not limited to: the conditions of the capital markets;
risks and uncertainties relating to conducting operations in a competitive
environment and a changing industry; delays, difficulties, management
transitions and employment issues associated with consolidation
of, and/or changes in business operations; managing the integration
of existing and acquired companies; risks and uncertainties associated
with existing or future vendor relationships; and general economic
conditions. Certain
additional risks and uncertainties are set forth in IKON's 2001
Annual Report on Form 10-K/A and Quarterly Reports on Form 10-Q
as filed with the Securities and Exchange Commission. As
a consequence of these and other risks and uncertainties, IKON's
current plans, anticipated actions and future financial condition
and results may differ materially from those expressed in any forward-looking
statements. CONTACT:
IKON
Office Solutions Veronica
Rosa, 610/408-7196 vrosa@ikon.com
or Steven
Eck, 610/408-7295 seck@ikon.com
####################
################################################# _________________________________________________________________
Study:
Air Force Lease Plan Costly (
Shades of Enron) By
ALAN FRAM .c
The Associated Press WASHINGTON
(AP) - A plan for the Air Force to lease 100 aircraft from the Boeing
Co. and convert them into refueling tankers could cost taxpayers
$37 billion, or $12 billion more than simply buying the planes,
a congressional study released Wednesday said. The
estimates by the nonpartisan Congressional Budget Office were released
by Sen. John McCain, R-Ariz., a critic of the leasing plan since
Congress approved it last December. At the time, supporters said
leasing the planes for 10 years was the best way to let the Air
Force update its aging fleet of tankers while helping the giant
but financially ailing aircraft manufacturer. On
Tuesday, McCain released a separate analysis by the White House
budget office that said the plan to lease and convert 100 Boeing
767s would cost $26 billion. Simply upgrading the Air Force's 126
older KC-135E tankers would cost $3.2 billion, the White House report
said. ``This
leasing proposal is a bad deal for taxpayers, a bad deal for the
military and a bad deal for pretty much everyone but Boeing,'' McCain
said in a written statement. The
two agencies' estimates for the leasing arrangement differed in
part because the congressional analysis included the costs of operating
the planes while the White House report did not. Refueling
tankers have proven important to the long-range air wars the United
States has waged in recent years, such as in Afghanistan and Kosovo,
but many of the aircraft are several decades old. The Air Force
and Boeing are negotiating terms of the potential lease. According
to the White House, the Air Force has 126 KC-135Es and 410 upgraded
KC-135Rs. The Air Force says the average age of the KC-135Es is
more than 43 years, while the KC-135Rs are newer, carry more fuel,
cost less to maintain and can take off from shorter runways. ``The
nation needs to modernize our aging tanker fleet,'' said Air Force
spokesman Capt. Joe Dellavedova. ``If it doesn't make sense to move
forward with a lease that would accelerate tanker modernization,
we will pursue other options.'' Virnell
Bruce, a Boeing spokeswoman, said the two budget agencies used ``some
totally erroneous assumptions'' to derive their cost estimates. ``We
believe the ultimate cost of the lease to the Air Force and taxpayers
will be affordable and well below the figures quoted by others,''
she said. Todd
Webster, spokesman for Sen. Patty Murray, D-Wash., where many of
Boeing's aircraft are produced, said once a lease is completed,
``We can end the politically motivated speculation and assess the
cost of getting this critical asset into the hands of our servicemen
and women.'' In
a letter to McCain, Director Dan Crippen of the Congressional Budget
Office noted that when the proposed 10-year lease of the aircraft
had expired, the Air Force still would need tankers. It would then
have to buy them, which would bring the cost to about $40 billion,
or seek another arrangement, he said. ``Leases
have a greater potential to be cost-effective if the government
does not have a long-term requirement for the asset,'' Crippen wrote.
``That does not appear to be the case here.'' White
House budget chief Mitchell Daniels wrote McCain that under the
leasing plan, the Air Force would end up with fewer new tankers
than the older ones it was replacing, reducing the amount of fuel
they could carry. ``In
other words, replacing the KC-135E fleet would not solve, and could
exacerbate'' the Air Force's tanker problems. On
the Net: Congressional Budget Office: http://www.cbo.gov Boeing
Co. 767 tanker-transport page: http://www.boeing.com/defense-space/military/767t-t/flash.html
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House
panel answers Amtrak's pleas for $1.2 billion to avoid route cuts
By
Laurence Arnold ASSOCIATED
PRESS WASHINGTON
– A House subcommittee answered Amtrak's pleas for a major
boost in funding, sending a strong signal that the cash-starved
railroad will get the money it says it needs to avoid cutting routes.
The
proposal adopted on Wednesday by the House Transportation subcommittee
on railroads would guarantee Amtrak's existence for another year,
giving lawmakers and the Bush administration more time to debate
a long-term policy for passenger rail. If
approved by Congress and signed by President Bush, the bill would
give Amtrak the $1.2 billion it requested for the fiscal year beginning
Oct. 1. The bill would also provide $775 million for security and
safety upgrades. The
bill enjoys bipartisan support from transportation leaders in the
Republican-controlled House, which is generally more skeptical of
Amtrak than the Democrat-controlled Senate. Amtrak
has warned it will have to make cuts – starting with its 18
long- distance routes – if it receives less than $1.2 billion.
"This
bill represents the beginning of a new era of passenger rail in
this country, because it recognizes the simple fact that it takes
real money to provide real service," said Tennessee Rep. Bob
Clement, the ranking Democrat on the subcommittee. Rep.
Earl Blumenauer, D-Ore., said he normally opposes "short-term
fixes" but considered the bill an important boost for Amtrak.
One
leading Amtrak critic – Rep. John Mica, R-Fla. – voted
against the bill. "At
best this is a Band-Aid," said Mica, who favors breaking up
Amtrak and letting private companies take over any profitable routes.
"It only will stave off the inevitable." The
bill imposes new requirements on Amtrak to submit periodic assessments,
business plans and a capital spending plan to the government, said
Rep. Jack Quinn, R-N.Y., the subcommittee chairman. "We
simply want to know that the money is being spent wisely,"
Quinn said, adding that the full committee will consider the bill
in about two weeks. Before
the hearing, Quinn and Clement participated in a pro-Amtrak rally
near the Capitol that drew about 100 people. The
subcommittee also approved a separate bill that would provide up
to $59 billion for development of new high-speed rail corridors
around the country. The bill puts states rather than Amtrak in charge
of the money to leave open the possibility that other companies
might run the high-speed service. Amtrak
has relied upon government subsidies for its entire 31-year existence
and will not meet an order by Congress to end that reliance by the
end of this year. Many
Amtrak backers are putting their hopes behind a bill by Sen. Ernest
Hollings, D-S.C., that would keep Amtrak operating for five more
years and spend $4.6 billion a year on improving and expanding rail
service. The Senate Commerce Committee approved the bill April 18.
On
the Net: House
Transportation Committee: www.house.gov/ transportation Amtrak:
www.amtrak.com Coke
debuts new vanilla flavor at Connecticut cafe (Some
good news...hope they have it in “diet form.) By
Donna Tommelleo, POMFRET,
Conn. (AP) The owners of the little Vanilla Bean Cafe had a Coke
and a great big smile Wednesday. The
eatery in this New England town of 3,500 became the place Coca-Cola
Co. debuted its Vanilla Coke, the newest variation of the classic
soft drink. About
500 people including many schoolchildren who coincidentally had
the day off were on hand as the delivery truck rolled in about 10:45
a.m. It was greeted by a high school chorus and town officials.
First
Selectman David Patenaude declared it ''Vanilla Day'' in the town.
''It's
a lot of fun for the town of Pomfret to have all this vitality and
celebrity,'' he said. The
40 cases dropped off at the restaurant were gone in minutes, devoured
by a crowd that pushed to get at the 20-ounce plastic bottles. Julian
Burke, 15, downed his first bottle in a few seconds and shoved four
more in his pants pockets. ''It's
a lot like cream soda, only it's better,'' he said. ''I like it
a lot.'' Brothers
Brian and Barry Jessurun, who own the Vanilla Bean Cafe, also run
a catering business and will be handling Coca-Cola's 116th anniversary
dinner for 600 people in New York on Wednesday night. ''It's
a great honor,'' Brian Jessurun said. Coca-Cola
executives say they chose the small cafe after finding the name
on the Internet. ''Our
people came up here and fell in love with it,'' said Chris Lowe,
a senior vice president. Vanilla
Coke is a line extension of Coca-Cola, to be available in the same
bottle and can configurations and for the same prices as Coke. The
company is hoping to replicate the success of rival PepsiCo Inc.'s
Code Red, a red version of its Mountain Dew soda. Analysts say such
product variations are an important selling element, particularly
among younger consumers, to attract new sales. Vanilla
Coke is scheduled to be available nationwide by May 15. |
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