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Home » Planes, Copters, Blimps » Winner –Take-​​All Tanker Deal Criticized

Winner –Take-​​All Tanker Deal Criticized

tanker-deal.jpg

The Northrop Grumman/​EADS North America team is clearly happy to have some­thing new to talk about with regard to its Airbus A330-​​based tanker. The team made the first dry con­tact with the new EADS-​​designed boom dur­ing a Dec. 10 flight test.

The first photo (both of which are from EADS) below shows the F-​​16 air­craft in receiver posi­tion lin­ing up behind the A310 test plat­form. And, the sec­ond photo shows a close up of the contact.

Paul Meyer, Northrop Grumman’s KC-​​30 vice pres­i­dent, says the pur­pose of the test was to val­i­date the design of the boom and its hoist and con­trol sys­tem. Operators also used the remote work­sta­tion onboard the air­craft to con­trol the boom. The hoist caused some ear­lier prob­lems for the team.

Yet, the team is mum on future mile­stones. A date to pass fuel in midair through the boom on the A310 to a receiver hasn’t been announced (fuel has been passed on the ground). Nor has a tar­get date been acknowl­edged for pass­ing gas through the A330-​​based Australian Multi-​​Role Tanker Transport to a receiver air­craft. Those are to come.

One thing Meyer isn’t quiet about is his appar­ent frus­tra­tion with the Air Force’s deci­sion for a winner-​​take-​​all downs­e­lect instead of a split buy between the Airbus– and Boeing 767-​​based designs. He had a hand­ful of rea­sons why the split-​​buy strat­egy makes sense.

There’s indus­trial base, for one. Meyer says that the rela­tion­ship between Northrop Grumman and EADS North America isn’t going to hold to the next com­pe­ti­tion; USAF plans to con­duct a com­pe­ti­tion for a KC-​​10 replace­ment, called KC-​​Y, in 2018. “We are not going to sit here and hold on this cur­rent arrange­ment with EADS for 10 years for the hope that there might be an acqui­si­tion pro­gram when there isn’t one as a pro­gram of record today.”

Furthermore, Meyer says the talk among senior Air Force lead­ers about ramp­ing up a poten­tial KC-​​X buy — now between 12–18 air­craft per year up to a total pur­chase of 179 air­craft — is “con­fus­ing.” Air Force Secretary Michael Wynne and oth­ers are push­ing for the White House and Congress to boost the Air Force’s topline pro­cure­ment bud­get by about $20 bil­lion per year, mostly to buy higher quan­ti­ties of F-​​22s, F-​​35s and tankers sooner and to retire the legacy air­frames more quickly.

“The RFP is 15 per year, plus or minus three. There have been gen­eral offi­cers who have made state­ments that we’d like to accel­er­ate and increase the annual buy to buy out the whole fleet,” Meyer says. “You can’t say that and say there is a KC-​​Y as well, can you? The state­ments don’t log­i­cally match up.”

Keep up to date on the USAF tanker deal from our Aviation Week friends at Miliary​.com.

– Christian

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December 12th, 2007 | Planes, Copters, Blimps | 270623 Comments »http://defensetech.org/2007/12/12/winner-take-all-tanker-deal-criticized/Winner+-Take-All+Tanker+Deal+Criticized2007-12-12+17%3A50%3A03Ward You can skip to the end and leave a response. Pinging is currently not allowed.

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  1. ohwilleke says:
    December 12, 2007 at 2:15 pm

    “There’s indus­trial base, for one.”, has to be the most craven jus­ti­fi­ca­tion on the planet. It is another way of say­ing, “my prod­uct is infe­rior but you should buy from me any­way, so that you can con­tinue to have the option of pur­chas­ing my infe­rior prod­ucts.” Why should we spend money for the pri­mary pur­pose of ben­e­fit­ing the share­hold­ers of Northrop Grumman/​EADS?

    Reply
  2. whatmeworry says:
    December 12, 2007 at 4:02 pm

    The ser­vices where con­fused about what to buy in the 90’s when Clinton cut their bud­gets, too few dol­lars chas­ing unknow­able future threats. Now with a gusher of dol­lars they still don’t know what they want for rel­a­tively know­able threats(COIN + China and China prox­ies).
    They need to get their act together.

    Reply
  3. ak says:
    December 12, 2007 at 6:13 pm

    I’ve seen com­par­isons where the EADS prod­uct looks vastly supe­rior on paper.
    However, WHY? I mean from an engi­neer­ing sense, why? The basic air­frame and engines aren’t some quan­tum leap bet­ter than the Boeing prod­uct. In fact if the US AF wanted the same engines on each con­tes­tant, they could just say so. What of the inter­nal equip­ment? If the EADS stuff is bet­ter, sim­ply man­date that it goes into the boe­ing air­frame if that’s more polit­i­cally palat­able.
    If the easds prod­uct is supe­rior, buy it. They’ll bend over back­wards to make a good deal. But I don’t under­stand the paper comparisons.

    Reply
  4. irtusk says:
    December 12, 2007 at 6:29 pm

    > I’ve seen com­par­isons where the EADS prod­uct looks vastly supe­rior on paper.
    >
    > However, WHY? I mean from an engi­neer­ing sense, why? The basic air­frame and engines aren’t some quan­tum leap bet­ter than the Boeing prod­uct.
    1. it is the big­ger plane which gives it the lead in mea­sur­ables like range and pay­load (and leads to the boe­ing ‘right­size’ argu­ment)
    2. it is the newer plane. The A-​​330 was designed sev­eral years after the 767 so it is a more mod­ern design and has stuff like fly-​​by-​​wire and just the advan­tage of being able to learn from its predecessor’s mistakes

    Reply
  5. AhzeeDahak says:
    December 12, 2007 at 7:04 pm

    The notional Airbus KC-​​30 has a few ‘large num­bers’ on its paper spec­i­fi­ca­tion, since the airframe’s larger than the 767. I’m not sure how much this worth, though. Should it be built and work as per the spec, it would carry more fuel for a longer range, but at the cost of requir­ing longer air­fields and larger hang­ers.
    An argu­ment can be made for larger and larger tankers, in which case a KC-​​747 would make even more sense. But has any­one made a case for very large tankers and the infra­struc­ture to sup­port them?
    Please note, the Boeing team has actu­ally built the KC-​​767, sold it, and is test­ing pro­duc­tion air­frames right now. They also have a track record of actu­ally build­ing tankers. So the com­par­i­son isn’t apples-​​to-​​apples, or even apples-​​to-​​oranges. It’s apples-​​to-​​I-​​wanna-​​grow-​​oranges. Color me unimpressed.

    Reply
  6. Rix says:
    December 12, 2007 at 10:18 pm

    I will per­son­ally kick in $500 of my per­sonal funds against my con­gressper­son if they betray me by vot­ing to pro­cure an EADS tanker. I do not work in the aero­space indus­try but the thought of the USAF fly­ing for­eign tankers sticks in my craw. And no, I do not see the boe­ing prod­uct as infe­rior. The USAF can order 787 if they need larger planes.

    Reply
  7. irtusk says:
    December 12, 2007 at 11:28 pm

    > but at the cost of requir­ing longer air­fields and larger hang­ers.
    the longer air­fields actu­ally isn’t clear, there is some talk about the KC-​​30 being able to use SHORTER run­ways because of brak­ing require­ments when abort­ing a take­off at MTOW and some such stuff
    as far as hangars, i haven’t seen any defin­i­tive info on how many hangars would actu­ally have to be mod­i­fied. We already have planes with longer wingspans (B-​​52, C-​​17, C-​​5) and planes usu­ally stay out­side any­ways except per­haps for major main­te­nance. And besides, accept­ing a less capa­ble fleet for the next 60 years because of 40 year old hangars? come on, that’s about as lame an excuse as it gets
    > An argu­ment can be made for larger and larger tankers, in which case a KC-​​747 would make even more sense.
    except that they would cost more and there­fore the USAF would be have to buy less of them which gets to the whole ‘booms in the sky’ argu­ment
    many peo­ple have argued that if the KC-​​30 is bet­ter because it’s big­ger, well Boeing could just offer the KC-​​777 and blow it out of the water
    the key point they don’t real­ize is that the 777 (and 747) are much, much more expen­sive than the 767 and they could never meet AF cost require­ments with them.
    Airbus on the other hand is able to offer the larger (more capa­ble) A330 for THE SAME PRICE OR LESS than the 767. If Boeing could offer the KC-​​777 for the same price as the KC-​​767, I would be all over that as it would be a tremen­dous capa­bil­ity boost. Unfortunately they can’t, and thus i feel the KC-​​30 is the best choice
    > Please note, the Boeing team has actu­ally built the KC-​​767, sold it, and is test­ing pro­duc­tion air­frames right now.
    the plane they are fly­ing right now has very lit­tle rela­tion­ship to what they are propos­ing
    if they win the con­tract, they will design a new model of the 767 called the LRF (long range freighter) which is an amal­ga­ma­tion of at least 3 other 767 mod­els plus some more tweaks
    if air­bus wins, they will base it off the 330F freighter, which they have already com­pleted design of and have almost fin­ished pro­duc­tion of a pro­to­type
    air­bus is closer to hav­ing their pro­posal fly­ing at this point than boe­ing does
    > They also have a track record of actu­ally build­ing tankers.
    before the KC-​​767 for Japan and Italy, the last tanker they built was over 40 years ago. That just doesn’t carry a lot of mean­ing in the present
    air­bus has actu­ally deliv­ered more tankers in the last 10 years than boe­ing has
    as far as Boeing’s track­record with the KC-​​767, it has been far from impres­sive. They took over 2 years to solve var­i­ous issues includ­ing aero­dy­namic issues with the refu­elling pods. And part of the ‘solu­tion’ was lim­it­ing the plane’s top speed.
    > And no, I do not see the boe­ing prod­uct as infe­rior.
    why’s that?
    > The USAF can order 787 if they need larger planes.
    not if they still want to buy 179 of them, they would be too expen­sive
    also not if they wanted sub­stan­tial deliv­er­ies any time soon as the 787 pro­duc­tion line is fully booked well into the future

    Reply
  8. NTV says:
    December 13, 2007 at 9:50 am

    > the longer air­fields actu­ally isn’t clear, there is some talk about the KC-​​30 being able to use SHORTER run­ways because of brak­ing require­ments when abort­ing a take­off at MTOW and some such stuff
    I here this sort of thing put out there, but I havent seen any­thing back­ing it up. If true it is a sig­nif­i­cant fac­tor.
    > We already have planes with longer wingspans (B-​​52, C-​​17, C-​​5)
    Yes, but those planes are usu­ally at dif­fer­ent basess than the refu­el­ers. In the cases where they are col­lo­cated, the big­ger hang­ers wont have the spare capac­ity to han­dle big­ger tankers.
    > And besides, accept­ing a less capa­ble fleet for the next 60 years because of 40 year old hangars? come on, that’s about as lame an excuse as it gets
    But you have to look at the big­ger pic­ture, If the AF goes with Airbus, but then has to spend sig­nif­i­cant amount of money on infra­struc­ture, then they arent really up very much.
    > the plane they are fly­ing right now has very
    > lit­tle rela­tion­ship to what they are propos­ing
    Yes, but hasnt NG/​EADS said that they will switch their air­frame as well??
    > before the KC-​​767 for Japan and Italy, the last
    > tanker they built was over 40 years ago. That
    > just doesn’t carry a lot of mean­ing in the present
    I would sug­gest that you are very wrong on this. The cur­rent and for­mer bomber/​recce/​tanker flight crew­men that I know are very much in favor of the K-​​767 because they knoe how good of plane Boeing makes. I wouldnt dis­count that feeling.

    Reply
  9. irtusk says:
    December 13, 2007 at 10:28 am

    > > And besides, accept­ing a less capa­ble fleet for the next 60 years because of 40 year old hangars? come on, that’s about as lame an excuse as it gets
    >
    > But you have to look at the big­ger pic­ture, If the AF goes with Airbus, but then has to spend sig­nif­i­cant amount of money on infra­struc­ture, then they arent really up very much.
    hav­ing a more capa­ble asset for the next 60 years isn’t being ‘up very much’?
    if build­ing new hangars added say 30% to the total con­tract cost, then yes that would be a prob­lem. But i just don’t see that being the case
    744 B-​​52s were built, less than 100 exist today, there’s got to be some spare hangar capac­ity around some­where
    (besides i haven’t seen any firm fig­ures about how many cur­rent hangars WON’T acco­mo­date the KC-​​30, who knows, per­haps most of them are large enough as is)
    » the plane they are fly­ing right now has very
    » lit­tle rela­tion­ship to what they are propos­ing
    >
    > Yes, but hasnt NG/​EADS said that they will switch their air­frame as well??
    not that i know of
    last i heard they were bas­ing it off the A330F and already had pro­duc­tion of a rep­re­sen­ta­tive pro­to­type well under way
    » before the KC-​​767 for Japan and Italy, the last
    » tanker they built was over 40 years ago. That
    » just doesn’t carry a lot of mean­ing in the present
    > I would sug­gest that you are very wrong on this.
    > The cur­rent and for­mer bomber/​recce/​tanker flight
    > crew­men that I know are very much in favor of the
    > K-​​767 because they knoe how good of plane Boeing
    makes. I wouldnt dis­count that feel­ing.
    they know how good of a plane one par­tic­u­lar model is that was designed almost 50 years ago
    The A330 has a plenty long com­mer­cial record, i trust the KC-​​X eval­u­a­tion team to make the appro­pri­ate inves­ti­ga­tions to deter­mine the qual­ity of each prospec­tive airframe

    Reply
  10. NTV says:
    December 13, 2007 at 11:25 am

    Here is part of a flight­global arti­cle on NG switch­ing air­frames.
    Northrop Grumman believes its KC-​​30 pro­posal will “inevitably” switch air­frames to the Airbus A330-​​200F model if its team wins the $40 bil­lion KC-​​X tanker con­tract for the US Air Force.
    The switch to the freighter model may have the sec­ondary effect of giv­ing KC-​​30 team mem­ber General Electric Aviation a fresh oppor­tu­nity to become the third engine sup­plier for the com­mer­cial A330-​​200F fleet.
    “I think [the switch to the freighter model] is inevitable, but right now it’s not in our pro­posal,” says Paul Meyer, Northrop’s vice-​​president and gen­eral man­ager for the KC-​​30 pro­gramme. The Northrop/​EADS North America team is bas­ing its bid on a pas­sen­ger A330-​​200 con­verted to a freighter, which adds a cargo door and localised strength­en­ing to the upper floor.
    That model was cho­sen because Northrop’s pro­posal was devel­oped before the A330-​​200F had received a launch cus­tomer, and because the more expen­sive freighter ver­sion would have increased the cost of the orig­i­nal bid, says Meyer. However, now that the A330-​​200F has a solid cus­tomer base and is fur­ther along its devel­op­ment path, Northrop believes the ded­i­cated freighter could more prove a attrac­tive can­di­date to the air force.
    LINK: http://​www​.flight​global​.com/​a​r​t​i​c​l​e​s​/​2​0​0​7​/​0​9​/​2​5​/​2​1​6​8​9​4​/​n​o​r​t​h​r​o​p​-​s​a​y​s​-​i​t​-​w​i​l​l​-​s​w​i​t​c​h​-​t​o​-​a​i​r​b​u​s​-​a​3​3​0​-​2​0​0​f​-​i​f​-​i​t​-​w​i​n​s​-​u​s​a​f​-​c​o​n​t​r​a​c​t​.​h​tml
    Regarding 744 B-52’s built and the result­ing hang­ers. The vast major­ity of SAC bases that housed the BUFF have been closed. In the cur­rent envi­ro­ment hanger space is at a pre­mium. I do not know the num­ber of hang­ers that need to be replaced. It would be inter­est­ing to see the num­ber and the cost. Maybe it is significant,maybe it is not.

    Reply
  11. irtusk says:
    December 13, 2007 at 12:01 pm

    > Here is part of a flight­global arti­cle on NG switch­ing air­frames.
    good call, i remem­ber that now
    for some rea­son i was think­ing they had already switched every­thing over to the 330F, obvi­ously not
    nev­er­the­less, the 330F is in active devel­op­ment and has real orders
    the LRF is a not-​​fully-​​developed con­cept, so i would still say air­bus would be able to start pro­duc­tion sooner than boeing

    Reply
  12. AhzeeDahak says:
    December 13, 2007 at 4:15 pm

    The Airbus MRTT is far behind the KC-​​767 in the pro­duc­tion line, and isn’t cheaper.
    When the RAAF announced they’d selected the KC-​​30B over the KC-​​767A, they stated the acqui­si­tion cost for the MRTT was higher. The decid­ing fac­tors were the larger cargo capac­ity and 20% higher fuel offload abil­ity. That 20% is a huge issue when you’re talk­ing about buy­ing a total of five refu­el­ing air­craft. Those five air­craft cost $1.5Bn, for a unit cost of $300M. The KC-​​767 is $225M per copy, or less depend­ing on con­fig­u­ra­tion. Please note, the lease-​​to-​​purchase deal that got shot down few years back had a final price of $178.7M per air­frame, with $40M of that being the pur­chase price at the end of the lease. I’m glad they saved us from sav­ing $122M per air­craft. For those of you play­ing along at home, that means that IF we can still get the sweet­heart deal we threw away four years ago, we could get a spare squadron of F-​​22s for each of 10 AEFs with the money we’d save select­ing the –767 over the –30.
    As for the Airbus air­craft being closer to pro­duc­tion, the KC-​​767 is already in pro­duc­tion for Japan and Italy. It’s first dry hookup was to a B-​​52 in January of this year, and it first trans­ferred fuel in March. The first green MRTT just got air­borne, and is fur­ther behind on the test regimes.
    Don’t get me wrong, the KC-​​30B is a very nice tanker. It’s just that it’s more expen­sive, with more expen­sive infra­struc­ture, and all that money goes to sup­port aero­space man­u­fac­tur­ing and design in other coun­tries rather than locally. I say there really has to be a com­pelling case to dis­card the old ‘buy American’ prin­ci­ple, and an equally com­pelling case made if we choose a more expen­sive aircraft.

    Reply
  13. George Skinner says:
    December 14, 2007 at 1:00 am

    The KC-​​767 lease pro­gram had more than a few things wrong with it, but it’s not sur­pris­ing that delay­ing a pur­chase and intro­duc­ing a lengthy com­pe­ti­tion would end up adding cost. Back when the lease was pro­posed, Boeing was hurt­ing for sales and the com­mer­cial air­line mar­ket was pretty unpleas­ant fol­low­ing 9/​11. That’s not the case any­more. In the mean­time, replace­ment of the KC-​​135 has been delayed even fur­ther. The tanker com­pe­ti­tion could eas­ily be a case where the right deci­sion was made for the wrong reasons.

    Reply
  14. NTV says:
    December 14, 2007 at 10:16 am

    > is that you Darleen Druyun?
    > i don’t think any­one else could call that lease scam a ‘sweet­heart deal’
    I dont know what to call it, but if it would save 40 — 50 mil­lion per plane it sounds good to me. Yes, I know we dont know how much they will cost and that they are slightly dif­fer­ent, but it appears that as flawed as that deal was, it might have been bet­ter. Of cousre we will have to wait and see the par­tic­ulers of the cur­rent deal to make a true judge­ment.
    irtusk– you have said this.
    > Airbus on the other hand is able to offer the
    > larger (more capa­ble) A330 for THE SAME PRICE
    > OR LESS than the 767.
    What is this based on? and you con­tinue to say that we dont know the price of the KC-​​767. Its my under­stand­ing that the KC-767’s will be at leat $50 mil­lion less than the KC-​​30.

    Reply
  15. irtusk says:
    December 14, 2007 at 5:15 pm

    > I dont know what to call it, but if it would save 40 — 50 mil­lion per plane it sounds good to me.
    where are you get­ting this $40–50 mil­lion fig­ure?
    nei­ther side has released what their bid is
    » Airbus on the other hand is able to offer the
    » larger (more capa­ble) A330 for THE SAME PRICE
    » OR LESS than the 767.
    > What is this based on? and you con­tinue
    > to say that we dont know the price of
    > the KC-​​767.
    we don’t KNOW, but var­i­ous avi­a­tion fig­ures with wide expe­ri­ence in the indus­try CAN make edu­cated guesses
    – Loren Thompson pre­dicts KC-​​30 will be offered for same price as KC-​​767 because Boeing is cap­i­tal­ist while Airbus is beholden to the European gov­ern­ments and will receive sub­si­dies
    http://​lex​ing​tonin​sti​tute​.org/​1​0​5​4​.​s​h​tml
    (hey if the euro­peans want to sub­si­dize our mil­i­tary, more power to them)
    – “Long for­got­ten is the fact that Airbus par­ent EADS in 2001–2002 offered the KC-​​330 for a price that was less than Boeing offered the KC-​​767″
    http://​www​.lee​ham​.net/​f​i​l​e​l​i​b​/​S​c​o​t​t​s​C​o​l​u​m​n​0​2​0​6​0​7​.​doc Why would this time be any dif­fer­ent?
    > Its my under­stand­ing that the KC-767’s will be at leat $50 mil­lion less than the KC-​​30.
    1. it’s ‘only’ $40 mil­lion
    2. that’s the list price, which has no basis in real­ity. No one buys for the list price. Both com­pa­nies offer sub­stan­tial dis­counts from the list price, it is just that Airbus tends to arti­fi­cially jack their list price even higher so they can seem to be giv­ing even big­ger dis­counts
    > As an addi­tion, rely­ing on for­eign prod­ucts will still weaken local firms. With less sales of local indus­tries, there will be less R&D and will bakrupt local firms.
    less R&D? for what? prac­ti­cally every com­po­nent except per­haps the boom is off the shelf
    and the KC-​​30 will use many, many local sup­pli­ers
    http://​www​.ead​stankerup​date​.com/​m​a​r​c​h​_​2​9​_​2​0​0​7​.​htm
    GE — engines
    Sargent Fletcher — wing pods and drouges
    Honeywell — radio man­age­ment sys­tem, mis­sion avion­ics suite and mechan­i­cal sys­tems
    Smiths Aerospace — flight man­age­ment sys­tem
    AAR Cargo Systems — cargo load­ing sys­tem
    Telephonics — inter­com­mu­ni­ca­tion system

    Reply
  16. NTV says:
    December 17, 2007 at 9:51 am

    > we don’t KNOW, but var­i­ous avi­a­tion fig­ures
    > with wide expe­ri­ence in the indus­try CAN make
    > edu­cated guesses.
    YES I UNDERSTAND THAT. The num­bers that I am quot­ing are also spec­u­la­tion from avi­a­tion sources. I dont know who’s are bet­ter, and at this point it doesnt mat­ter, because it is after all speculation.

    Reply
  17. irtusk says:
    December 17, 2007 at 11:20 am

    > The num­bers that I am quot­ing are also
    > spec­u­la­tion from avi­a­tion sources. I dont know
    > who’s are bet­ter, and at this point it doesnt
    > mat­ter, because it is after all spec­u­la­tion.
    i would still be curi­ous to see who said that
    if you hap­pen to have a link i would be much obliged

    Reply
  18. NTV says:
    December 17, 2007 at 12:22 pm

    I orig­i­nally saw the $200 — $250 mil­lion num­ber from GlobalSecurity. I have seen it as well as some lower num­bers offered up in the last year or so from other sites as well. It is obvi­ously not any­where difi­na­tive at this point, and we wont know until every­thing is said and done.

    Reply
  19. irtusk says:
    December 17, 2007 at 1:09 pm

    thanks for point­ing me to glob­alse­cu­rity, inter­est­ing arti­cle
    http://​www​.glob​alse​cu​rity​.org/​m​i​l​i​t​a​r​y​/​s​y​s​t​e​m​s​/​a​i​r​c​r​a​f​t​/​k​c​-​7​6​7​.​htm
    > According to a December 2001 Office of Management and Budget (OMB) esti­mate, the lease plan would cost $26 bil­lion, nearly three times the cost of sim­ply pur­chas­ing the planes.
    also of inter­est
    > This leas­ing pro­gram also will require between $600 mil­lion and $1.2 bil­lion in mil­i­tary con­struc­tion fund­ing to build new hangars, since exist­ing hangars are too small for the new 767 air­craft.
    it sounds like new hangars are going to have to be built no mat­ter what

    Reply
  20. NTV says:
    December 17, 2007 at 2:40 pm

    > it sounds like new hangars are going to have to be built no mat­ter what
    SOme might, but the 767 wingspan is only ~25 ft larger than the 135, I would bet that many hanger would just need some minor mod­i­fi­ca­tions. Whereas the KC-30’s wing span is ~65 feet wider than the 135.
    Interestingly enough the KC-​​30 is also big­ger than the KC-​​10, but car­ries much less gas.

    Reply

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