Boeing trumps EADS' bid for US Air Force refuelling contract worth €25 bn

After a decade of protracted negotiations, the US Air Force has awarded American aviation giant Boeing the coveted €25 billion contract to supply a new generation of air refuelling craft, ahead of its European rival EADS.

By News Wires (text)

REUTERS - Boeing has won a contract to build new refuelling planes for the U.S. Air Force, beating out Europe’s EADS (European Aerospace and Defense company), the Pentagon said on Thursday.

A portion of the Pentagon’s website that displays contract awards named Boeing the winner without giving the full value of the contract. Top military officials were due to hold a news briefing shortly.

EADS has 10 days to file a formal protest after a contract award, but congressional backers of the losing side can also seek to reverse the move legislatively.

The Air Force has failed with two previous attempts to begin replacing its 50-year-old KC-135 Stratotankers, which provide fuel to fighter planes and other aircraft in mid-flight, extending the range of military operations.

The decade-long saga has sparked trans-Atlantic tensions and clashes in Congress among lawmakers eager to bring high-paying aerospace jobs to their states.

EADS and Boeing, arch rivals in the market for passenger jets, have fought bitterly in public over the contest with expensive advertisements while their respective supporters have battled it out at duelling news conferences.

Any protest against the decision would be filed with the Government Accountability Office, the arm of Congress which rules on federal contract disputes. The GAO would then have 100 days to rule on the case.

The Air Force has been trying since 2001 to begin replacing its Boeing-built KC-135 tankers.

An initial $23.5 billion plan to lease and then buy 100 modified Boeing 767s as tankers, fell apart in 2004.

EADS, partnered with Northrop Grumman Corp, won a 179-plane deal in February 2008, only to have it canceled after government auditors upheld parts of a protest by Boeing.

Northrop subsequently pulled out, leaving the European aerospace and defense company to bid alone.

AEROSPACE

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ECONOMY

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AVIATION

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Date created : 25/02/2011

Comments (10)

Boeing trumps EADS

by Anonyme (not verified) - 26/02/2011 - 17:47

Well that wasn't a surprise was it?? And the 'US claims victory after WTO condemns 'illegal' Airbus subsidies' - I think that is typical double-talk!! Do as I say and not as I do springs to mind with this decision.

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refueling contract

by shallotman (not verified) - 26/02/2011 - 12:39

Would have been very surprised if the contract had been awarded to Europe. Suggest the Europeans were only involved to get the price down.

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Tanker Waste of $

by Anonyme (not verified) - 26/02/2011 - 02:23

We didn't need it for 10 years and certainly don't need it now ... so much for Congress ever to try and reign in spending. Jobs huh? Well Defense/War related expenditures are the worst 'job investment' possible .... as so the nonsense continues ...

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Poor Euro Babies

by Jay (not verified) - 25/02/2011 - 17:52

Ha Ha Ha Ha!

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Look to trade inbalance

by Jessie (not verified) - 25/02/2011 - 17:49

American Protectionism?? YOu really must be joking. All you have to do is look at the best indicator of that, our huge trade deficit. We far outpace everyone else so please get your facts straight. Sounds like sour grapes.

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Americans do not all think the same!!

by Anonyme (not verified) - 25/02/2011 - 16:03

I, for one, would rather have had EADS win the contract. From the research I've done, most of their work in the US would have been done in the American South. The overwhelming majority of Boeing's work is outside of my region of the country plus they are a unionized company. For what it's worth, I've contacted my Congressman not that it'll do any good.

But the comment - 'Typical Americans looking after their own...' - if we don't, who will? I mean this is for the UNITED STATES Air Force. As for the world economy, we had a lot of help from outside NA.

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Boeing tanker contract

by Denisw2100 (not verified) - 25/02/2011 - 12:29

The yanks keeping going on about free world trade, but they are the worlds worst for protoctorism. How many times more times do BA systems and other european companies have to spend millions on developement to meet american military specifications only to loose out before they and european governments realise they are wasting their time and money.

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Re tankers

by Norman Dee (not verified) - 25/02/2011 - 10:49

It begs the question why they took so long, I cannot imagine anyone thinking it would go any other way. My normal cynicism says perhaps the american goevernment paid EADs to help them drive down the price.