sense for platforms such as the KC-135, which could be operated part-time by a leasing company as cargo aircraft. By entering into a sale-and-leaseback arrangement with a short-term or cancelable lease, the Air Force would be able to recover value from an asset that it would otherwise place in a boneyard.
Overall, the committee determined that sale-and-leaseback arrangements that use short-term leases could represent a fair and viable means of financing a re-engining program and that, of the options considered, they have the best potential to benefit the Air Force because they can enable up-front realization, in cash, of the benefits of re-engining without requiring any up-front or recurring spending. As such, it considered such arrangements a necessary part of a complete discussion of available options. However, the approach is also the most exotic of those considered and would be the most likely to face significant cultural resistance.
Recommendation 9-3. The Air Force should analyze the following options in greater depth to determine their feasibility: (1) sale-and-leaseback on a long-term basis and (2) sale-and-leaseback on a short-term basis.
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