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US aviation deal boosts UK jobs US aviation deal boosts UK jobs
(30 minutes later)
Thousands of British aviation jobs are to be safeguarded over the next 15 years by a £20bn contract from the US Air Force, Airbus owner EADS has said.Thousands of British aviation jobs are to be safeguarded over the next 15 years by a £20bn contract from the US Air Force, Airbus owner EADS has said.
European group EADS and the US's Northrop Grumman are to build a fleet of 179 in-flight refuelling aircraft.European group EADS and the US's Northrop Grumman are to build a fleet of 179 in-flight refuelling aircraft.
The wings and other components will be made at factories in Filton, near Bristol, and Broughton in Flintshire.The wings and other components will be made at factories in Filton, near Bristol, and Broughton in Flintshire.
EADS says 13,000 people are employed at its plants, whose work also supports tens of thousands of other UK jobs.EADS says 13,000 people are employed at its plants, whose work also supports tens of thousands of other UK jobs.
Howard Wheeldon, a defence industry analyst with BGC Partners, said the contract was the largest single order ever placed by a US buyer for a European product.Howard Wheeldon, a defence industry analyst with BGC Partners, said the contract was the largest single order ever placed by a US buyer for a European product.
"It is a momentous award for EADS," he said."It is a momentous award for EADS," he said.
He said that the deal was for four test aircraft initially, worth about £1bn, which if supplied successfully would lead to work on the rest of the order.He said that the deal was for four test aircraft initially, worth about £1bn, which if supplied successfully would lead to work on the rest of the order.
And after the first phase of building 179 of the KC-45A planes, there could be demand for hundreds more, says the BBC's Andy Moore.And after the first phase of building 179 of the KC-45A planes, there could be demand for hundreds more, says the BBC's Andy Moore.
Appeal expectedAppeal expected
But US manufacturer Boeing, which had been favourite to win the contract, is expected to appeal against the decision.But US manufacturer Boeing, which had been favourite to win the contract, is expected to appeal against the decision.
"It will be a long and difficult process of challenge, and we cannot guarantee yet that this is on board," said Mr Wheeldon."It will be a long and difficult process of challenge, and we cannot guarantee yet that this is on board," said Mr Wheeldon.
We are outraged that this decision taps European Airbus and its foreign workers to provide a tanker to our American military Statement by congressional lawmakers from the Seattle area US row over air tanker deal The award announcement drew condemnation in the US from congressman for Kansas and Washington, states with large Boeing plants.We are outraged that this decision taps European Airbus and its foreign workers to provide a tanker to our American military Statement by congressional lawmakers from the Seattle area US row over air tanker deal The award announcement drew condemnation in the US from congressman for Kansas and Washington, states with large Boeing plants.
But a US Air Force spokesman said the winning design, based on the Airbus A330, had many advantages over Boeing's tanker.But a US Air Force spokesman said the winning design, based on the Airbus A330, had many advantages over Boeing's tanker.
"More passengers, more cargo, more fuel to offload, more patients that we can carry, more availability, more flexibility and more dependability," said Gen Arthur J Lichte."More passengers, more cargo, more fuel to offload, more patients that we can carry, more availability, more flexibility and more dependability," said Gen Arthur J Lichte.
Northrop Grumman will assemble the planes at a site in Alabama.Northrop Grumman will assemble the planes at a site in Alabama.
UK workers' contribution to the order amounts to about 20% of the aircraft.UK workers' contribution to the order amounts to about 20% of the aircraft.
Bernie Hamilton, national officer with the Unite union said it was "very good news" for the workforce at the Broughton wings plant and Filton. Bernie Hamilton, national officer with the Unite union, said it was "very good news" for the workforce at the Broughton wings plant and Filton.
"It's a very good contract, we were up against very stiff competition. You have to take into context this is from the US defence sector, and there was competition from an American competitor and an American product.""It's a very good contract, we were up against very stiff competition. You have to take into context this is from the US defence sector, and there was competition from an American competitor and an American product."
Mr Hamilton said Airbus had an "excellent reputation" and a "world beating product" but he also praised the "joined up thinking" of the UK government for its role "in shouting up for the Airbus product." Mr Hamilton said Airbus had an "excellent reputation" and a "world-beating product" but he also praised the "joined-up thinking" of the UK government for its role "in shouting up for the Airbus product".
He added: "I'm sure there will be lobbying taking place to rethink and look at this contract again but the fact this is their preferred decision will go a long way."He added: "I'm sure there will be lobbying taking place to rethink and look at this contract again but the fact this is their preferred decision will go a long way."