The first two FSTA aircraft are still on course to be converted at the beginning of 2008, with the first one due in service April 2010.
The contractual negotiations are taking their time because its not just about providing a fleet of aircraft. Its a complete package supplying aircraft, aircrew, groundcrew and all the support that goes with it for twenty odd years.
There are also severe penalties if the aircraft are not available. In this case the blame has to be correctly apportioned to the individual companies within the AirTanker consortium. This is one of the reasons the contractual negotiations are taking their time. You have to get these things right.
Leasing the aircraft to civil operators helps subsidise the cost although IMO I think that there will be so much demand from the MOD that they will never be leased out.