Boeing wins US tanker contract after 10-year saga
Friday 25 February 2011
Related articles
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.
-
Pope Francis: Being an atheist is alright as long as you do good
-
That's some guestlist! Stunning images show huge dynastic wedding between Ultra-Orthodox Jewish families which attracted 25,000 guests
-
Man and woman arrested on suspicion of conspiracy to murder victim of Woolwich machete attack, named as Drummer Lee Rigby
-
'Sickening, deluded and unforgivable': Horrific attack brings terror to London’s streets
-
Exclusive: Suspect was inspired by cleric banned from UK after urging followers to behead enemies of Islam
- 1 Pope Francis: Being an atheist is alright as long as you do good
- 2 Man and woman arrested on suspicion of conspiracy to murder victim of Woolwich machete attack, named as Drummer Lee Rigby
- 3 'Sickening, deluded and unforgivable': Horrific attack brings terror to London’s streets
- 4 Archaeologists uncover nearly 5,000 cave paintings in Burgos, Mexico
- 5 Woolwich attack: The EDL will seek to exploit this evil crime for their own evil ends
Get your summer started with British Military Fitness
BMF is the UK’s biggest and best loved outdoor fitness classes
Visit York
Find out what The Independent's resident travel expert has to say about one of the most beautiful small cities in the world
Making reading fun for kids
Nook is donating eReaders to volunteers at high-need schools and participating in exclusive events throughout the campaign.
Introducing the 'Get Reading' campaign
Get the latest on The Evening Standard's campaign to get London's children reading.
Enter the latest Independent competitions
Win anything from gadgets to five-star holidays on our competitions and offers page.
Business videos from commercial thought leaders
Watch the best in the business world give their insights into the world of business.
Day In a Page
The man who's eaten everywhere
A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?
Banned Iranian director to attend Cannes Film Festival
The 10 Best salt and pepper sets
Ferran Soriano: Predicting success if Manchester City 'vision' is followed
Edward VIII’s phone calls - and how MI5 bugged them


Comments