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EADS wins $40bn US aircraft deal EADS wins $40bn US aircraft deal
(30 minutes later)
Franco-German company EADS, owner of Airbus, has won a contract to build refuelling aircraft for the US Air Force, worth up to $40bn (£20bn).Franco-German company EADS, owner of Airbus, has won a contract to build refuelling aircraft for the US Air Force, worth up to $40bn (£20bn).
EADS joined with US firm Northrop Grumman to compete against Boeing for the lucrative deal to build 179 new aircraft over the next 10 to 15 years.EADS joined with US firm Northrop Grumman to compete against Boeing for the lucrative deal to build 179 new aircraft over the next 10 to 15 years.
The winning plane is based on the Airbus A330 and will be assembled in Alabama, creating 25,000 jobs. The winning plane will be assembled in Alabama. Parts including the wings will be built in the UK by Airbus.
US company Boeing had been emphasising its home-grown credentials. The deal is a huge blow to Boeing, which had been widely expected to win.
The BBC's Adam Brookes in Washington says awarding such a massive deal to a consortium that includes overseas manufacturers will be contentious in the United States and it is likely that Boeing will appeal against the decision.
Boeing had been emphasising its home-grown credentials while lobbying for the contract.
"The best for America's war fighters and America's workers," Boeing claimed in advertising running in the days leading up to the announcement."The best for America's war fighters and America's workers," Boeing claimed in advertising running in the days leading up to the announcement.
But EADS and Northrop Grumman said their KC-30 plane had a "longer range", with the ability to carry 45,000 more pounds of fuel than Boeing's plane. But EADS and Northrop Grumman said their KC-30 plane had a "longer range", with the ability to carry 45,000 more pounds of fuel than it competitors.
Global strikeGlobal strike
"It is the first step in our critical commitment to recapitalise our ageing fleet to move, supply and position assets anywhere," said Air Force General Duncan McNab. The winners emphasised that the assembly work would be carried out in the United States, where the project would create or support 25,000 jobs.
"It is the first step in our critical commitment to recapitalise our ageing fleet to move, supply and position assets anywhere," said Air Force Gen Duncan McNab.
"In this global air force business, the critical element for air bridge, global intelligence, surveillance and reconnaissance, and global strike is the tanker," he said."In this global air force business, the critical element for air bridge, global intelligence, surveillance and reconnaissance, and global strike is the tanker," he said.
The initial contract for the tanker, called the KC-45A, is to develop four test aircraft for $1.5bn, the US Air Force said. The initial contract for the tanker, to be called the KC-45A, is to develop four test aircraft for $1.5bn, the US Air Force said.
"The KC-45A will provide significantly greater air refuelling capabilities than the current fleet of Eisenhower-era KC-135s it will begin replacing," the Air Force said in a statement."The KC-45A will provide significantly greater air refuelling capabilities than the current fleet of Eisenhower-era KC-135s it will begin replacing," the Air Force said in a statement.
The KC-45A will be able to refuel both Air Force and Navy aircraft on the same flight, which is not possible with the existing KC-135 Stratotankers.
It will also be able to refuel two aircraft simultaneously mid-flight and have defensive systems that will enable it to operate in the more dangerous environments that existing refuelling tankers have to avoid.