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Old 11th Apr 2008, 23:38
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From Reuters:

http://www.reuters.com/article/spher...ue&view=sphere

By Andrea Shalal-Esa

WASHINGTON, April 8 (Reuters) - A retired Air Force general resigned on Tuesday as chairman of the nonprofit Airlift/Tanker Association over a perceived conflict of interest due to his work as a consultant for Boeing Co (BA.N: Quote, Profile, Research), two sources familiar with the matter said on Tuesday.

Boeing is protesting the February award of a $35 billion Air Force program for 179 new aerial refueling aircraft to Northrop Grumman Corp (NOC.N: Quote, Profile, Research) and its European subcontractor EADS (EAD.PA: Quote, Profile, Research).

Retired Air Force Gen. Ron Fogleman's resignation came after he gave a speech earlier on Tuesday in Orlando, Florida, praising the superiority of the Boeing 767 aerial tanker. The speech was at a lunch sponsored by Boeing at the annual convention of a separate group, the Aerial Refueling Systems Advisory Group.

"He resigned because there was a perceived conflict of interest and he wanted to keep the organization out of it," said one of the sources, who asked not to be named.

An assistant to Fogleman said he was traveling and could not be reached for immediate comment.

Boeing, Northrop and EADS are all members of the Airlift/Tanker Association, which includes civilians and military personnel.

The association's Web site describes the group as "providing a forum for ensuring American military forces continue to have the air mobility capability required to implement U.S. national security strategy."

Fogleman has been a consultant to Boeing for years. His name appeared on various documents that emerged during an earlier $23.5 billion Air Force plan to lease 100 Boeing 767 tankers, which was scrapped amid a major procurement scandal.

Boeing officials had no immediate comment.

Mark Smith, president of the Airlift/Tanker Association, confirmed in a statement that Fogleman had resigned, effective immediately, after four years as the group's chairman.

"Gen. Fogleman made his decision to resign as chairman to have greater freedom of action regarding current issues in the national defense commercial arena," Smith said .

The Airlift/Tanker Association's latest quarterly magazine featured an article about the Air Force project to replace its aging fleet of aerial tankers.

Fogleman retired from the Air Force in 1997 after 34 years with the service. His last job with the Air Force was as chief of staff.

Smith said retired Air Force Gen. Walt Kross had been appointed acting chairman of the Airlift/Tanker Association until formal elections at the group's convention in November. (Reporting by Andrea Shalal-Esa; Editing by Tim Dobbyn)
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