EADS bid
April 21, 2010
European aerospace giant EADS plans to compete with American rival Boeing to bid on a $35 billion (26.1 billion euro) deal to supply the US Air Force with new aerial refueling tankers.
"This is a hell of an opportunity," said Ralph Crosby, chairman of EADS North America, at a press conference in Washington DC on Tuesday.
Crosby said EADS felt "almost compelled" to enter the competition to offer its A330-based tanker, which it feels is superior to Boeing's 767-based tanker. "When you've got the best, you've got to offer it," he said.
EADS (European Aeronautic Defence and Space Company) will now bid as the prime contractor for the project. Its US partner Northrop Grumman dropped out six weeks ago, amid complaints that Washington was engaging in protectionism that favored Boeing.
Northrop and EADS won a previous US tanker contract in 2008, but the Pentagon canceled the deal after government auditors upheld a protest by Boeing that said errors were made in the bid process. Bidding reopened earlier this year, and the competing companies now have until July 9 to submit their bids.
Boeing backers
Boeing supporters in Congress criticized the Pentagon for extending the deadline, despite a recent report from the World Trade Organization that pointed out that EADS benefited from government subsidies for its airplanes.
"It means we are bending over backwards to include a company that has broken the rules of fair play," said Senator Patty Murray, a Democrat from Washington state, where Boeing would build the 179 airplanes.
Critics also said an EADS contract would end up costing more, both in terms of maintenance costs for the aircraft and American jobs.
Crosby, however, stressed that EADS remained committed to building the planes in the United States, creating tens of thousands of jobs across the country. He added that they were working with its more than 200 suppliers to lower the maintenance costs.
The Pentagon welcomed the renewed competition for the tanker replacement program, and said it expected to decide on a winner by "early fall."
cmk/AFP/dpa/Reuters
Editor: Rick Demarest