$35 billion US tanker decision imminent: Boeing and Airbus prepare to protest a loss

The much awaited winner of the order for 179 tanker aircraft for the US Air Force worth about $35 billion will be announced after markets close this evening (Thursday 24th February) reports Reuters (via the NYT):

KC-767-200ER/300ER is a credible replacement for the KC-135R: image ausairpower.net

The decision, expected after U.S. financial markets close, marks another pivotal point in the Air Force’s nearly decade-long struggle to begin replacing its 50-year-old KC-135 Stratotankers, which refuel fighter planes and other aircraft in mid-flight to extend the range of military operations.

But analysts say there is no guarantee an epic industry battle will end there. The losing bidder is likely to file a protest that could delay — or overturn — the contract.

The competition to supply 179 air-to-air tankers has sparked sporadic transatlantic tensions and clashes in Congress among lawmakers eager to bring jobs to their states. …. Now, the Pentagon is close to giving its decision on the third attempt to replace aging Eisenhower-era tanker planes and senior defense officials say the choice between Boeing and EADS could come on Thursday.

A330 MRTT tanker (EADS)

A330 MRTT tanker (EADS)

Both Boeing and EADS, through its North American subsidiary, are offering specially adapted versions of existing twin-engined wide-body passenger jets: the Boeing 767 and the Airbus A330.

Analysts widely expect the losing side to file a protest against the decision with the Government Accountability Office, the arm of Congress which rules on federal contract disputes.

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.


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2 Responses to “$35 billion US tanker decision imminent: Boeing and Airbus prepare to protest a loss”

  1. Unknown's avatar $35 billion US tanker decision imminent: Boeing and Airbus prepare to protest a loss (via The k2p blog) « Calgary Recreational and Ultralight Flying Club Says:

    […] $35 billion US tanker decision imminent: Boeing and Airbus prepare to protest a loss (via The k2p blog) 24 02 2011 The much awaited winner of the order for 179 tanker aircraft for the US Air Force worth about $35 billion will be announced after markets close this evening (Thursday 24th February) reports Reuters (via the NYT): The decision, expected after U.S. financial markets close, marks another pivotal point … Read More […]

  2. Unknown's avatar Surprise! Boeing wins $35 billion tanker order « The k2p blog Says:

    […] $35 billion US tanker decision imminent: Boeing and Airbus prepare to protest a loss […]

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