Bad deal for UK taxpayers?

The US Air Force is close to getting 100 new-build Boeing 767 tankers for $21 billion on a 10-year lease, including the option to purchase at the end (Flight International, 6-12 May). In the same issue you report that the UK Royal Air Force is about to be saddled with a £13 billion ($21 billion) pay-by-use contract for only 20-30 similar aircraft that may be secondhand. The RAF will not gain ownership at the end of this contract.

On the face of it, UK taxpayers are getting a bad deal compared with their US counterparts.

With many airlines cutting back, there are large numbers of nearly new Airbus A310s, A340s, Boeing 757s, 767s and MD-11s available cheaply. Why does the UK Treasury have such an obsession with private finance initiatives when outright purchase seems a lot cheaper?

John Hartley Woking, UK

Source: Flight International