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| EADS wins $40bn US aircraft deal | EADS wins $40bn US aircraft deal |
| (about 2 hours 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 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 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. | 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. |
| It is the first step in our critical commitment to recapitalise our ageing fleet to move, supply and position assets anywhere Air Force Gen Duncan McNab | |
| Boeing spokesman Jim Condelles said the company was disappointed. It will decide whether to appeal after hearing from the Air Force why it picked EADS, he said. | |
| "We had two very competitive offers in this competition," Sue Payton, assistant secretary of the Air Force for acquisition said. | |
| "Northrop Grumman clearly provided the best value to the government," she said. | |
| Home-grown | |
| Boeing had been emphasising its home-grown credentials while lobbying for the contract. | Boeing had been emphasising its home-grown credentials while lobbying for the contract. |
| Boeing said it was disappointed its KC-767 design did not win | |
| "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 emphasised that the assembly work would be carried out in the United States, where the project would create or support 25,000 jobs. | |
| "They don't come along at this scale very often," Northrop Grumman Chairman and CEO Ronald Sugar said. | |
| The winners said their KC-30 plane had a "longer range", with the ability to carry 45,000 more pounds of fuel than it competitors. | |
| "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. | "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 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. | 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. | 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. |
| The Air Force expects the new aircraft to begin testing in 2010, before going into operation in 2013. |