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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 will be assembled in Alabama. Parts including the wings will be built in the UK by Airbus. | |
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 it competitors. | |
Global strike | Global strike |
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, 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. |