Boeing wins US tanker contract after 10-year saga
Friday 25 February 2011
the aerospace giant Boeing was last night awarded a $30bn (£18bn) deal to replace the US air force's ageing fleet of mid-air refuelling tankers, dashing the hopes of European rival EADS that it could win its first major US defence contract.
The victory for Boeing, which ran counter to days of industry gossip, comes at the third attempt and in the 10th year of a procurement saga.
A first Pentagon contract to lease a modified version of the Boeing 767 fell apart amid an ethics scandal, in which Boeing was revealed to have hired the procurement official responsible for awarding it the deal. Airbus won a revised contract in 2008, but Boeing appealed over flaws in the decision-making process, amidst a political outcry.
Both sides have had politicians lobbying for their bid, because of the jobs expected to be created in the states where manufacturing is based. In the end Boeing beat EADS on price, coming in 1 per cent cheaper than its rival.
The size of the contract could swell to well over $100bn if the US orders more planes, over the original 179 under yesterday's contract.
"Today's announcement represents a long-overdue start to a much-needed programme," the Air Force Secretary, Michael Donley, said last night.
EADS expressed "disappointment and concern", but described the tanker contract as "one business opportunity among many" in the US. It has 10 days to decide whether to appeal.
"Our team is ready now to apply our 60 years of tanker experience to develop and build an airplane that will serve the nation for decades to come," said Boeing's chief executive, Jim McNerney.
- 1 'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
- 2 West poised to join forces with President Assad in face of Islamic State
- 3 Mother fed her daughter tapeworms to make her skinny for pageant
- 4 Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
- 5 Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
'Alien thigh bone' on Mars: Excitement from alien hunters at 'evidence' of extraterrestrial life
West poised to join forces with President Assad in face of Islamic State
Pamela Anderson rejects ice bucket challenge because of ALS experiments on animals: 'Mice had holes drilled into their skulls'
James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – as hunt begins for killer
ALS ice bucket challenge co-founder Corey Griffin drowns, aged 27
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again – it would be immoral to bring it into the world'
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Disgusting, frustrating, but intriguing: how the country really feels about its politicians
Bin bag full of cats' heads discovered near Manchester's Curry Mile
iJobs Money & Business
£30000 - £45000 per annum: Harrington Starr: A global investment management fi...
£65000 - £75000 per annum: Harrington Starr: Senior Network Engineer-(CCIE, CC...
£70000 - £80000 per annum: Harrington Starr: Senior Network Analyst - (CCIE, C...
£60000 - £80000 per annum: Harrington Starr: Senior Network Engineer-(Design, ...