Did Boeing, Lawmakers Count Out EADS Too Soon on Tanker Deal?
March 19th, 2010 by Rachel PritchettPARIS (AP) — Aerospace and defense company EADS said Friday it
is considering a new bid for a $35 billion Pentagon contract for
midair refueling tankers but it will only compete if it has a fair
chance against rival Boeing Co.
A consortium of EADS and Northrop Grumman pulled out of the bidding
for the long-awaited, 179-tanker contract earlier this month. They
said the terms of the deal appeared designed to favor a smaller jet
offered by Boeing.
But Thursday, the Defense Department “indicated it would welcome a
proposal from EADS North America as prime contractor for the KC-X
tanker competition,” according to a statement Friday from EADS. It
called the move “a significant development.”
EADS, the parent company of Airbus, said it would consider bidding
again if it is given an extended deadline to prepare a new proposal
— and, crucially, “if there is a fair chance to win.”
EADS and its American partner, Northrop, were initially awarded the
contract for the tanker fleet in 2008, but Boeing protested and the
deal was annulled later that year.
The withdrawal of the Northrop-led consortium left Boeing as the
only bidder.
Scripps Interactive Newspapers Group
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