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US Congress to examine EADS deal | US Congress to examine EADS deal |
(1 day later) | |
US lawmakers will examine the decision to award a huge US Air Force contract to European firm EADS and its partner, Northrop Grumman. | US lawmakers will examine the decision to award a huge US Air Force contract to European firm EADS and its partner, Northrop Grumman. |
The move was seen as a blow to Boeing, which missed out on a deal to supply air tankers potentially worth up to $40bn (£20bn). | The move was seen as a blow to Boeing, which missed out on a deal to supply air tankers potentially worth up to $40bn (£20bn). |
US House Speaker Nancy Pelosi said she wanted the Air Force to explain how the deal met long-term military needs. | US House Speaker Nancy Pelosi said she wanted the Air Force to explain how the deal met long-term military needs. |
The Pentagon contract for 179 new aircraft was announced on Friday. | The Pentagon contract for 179 new aircraft was announced on Friday. |
It is one of the largest deals of recent years. | It is one of the largest deals of recent years. |
Best value | Best value |
"The Air Force's decision to award the contract for a much-needed modernisation of the nation's aerial tanker fleet to Northrop Grumman and Airbus raises serious questions that Congress must examine thoroughly," Ms Pelosi said in a statement. | "The Air Force's decision to award the contract for a much-needed modernisation of the nation's aerial tanker fleet to Northrop Grumman and Airbus raises serious questions that Congress must examine thoroughly," Ms Pelosi said in a statement. |
EADS and Northrop Grumman are planning to assemble the aircraft in Alabama. Parts including the wings will be built in the UK by Airbus. | EADS and Northrop Grumman are planning to assemble the aircraft in Alabama. Parts including the wings will be built in the UK by Airbus. |
The Pentagon has said that the EADS bid offers the best value. | |
Home-grown | Home-grown |
Boeing emphasised its home-grown credentials while lobbying for the contract. | Boeing emphasised 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 emphasised that the assembly work would be carried out in the United States, where the project would create or support 25,000 jobs. | 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. |
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