Boeings Next Gen Tanker(The Winner)

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I read that Saturday, but was waiting for the end of today for the official word from the Russian government on this one, since now they are claiming they never said that.

[Meck]

And EADS seems to be in again - without Northrop-Grumman though...!

[C]

And EADS seems to be in again - without Northrop-Grumman though...!

Maybe they've been asked to submit a proposal to mitigate any lack of a competition.

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I think this may spear head passing the bill that make the DOD take into account subsidies, like the Boeing supporters on Capital Hill want, locking out EADS and any other "foreign" company from bidding on US contracts.


[quote]Boeing source: We may not bid for KC-X

By Vago Muradian and John Reed - Staff writers
Posted : Monday May 17, 2010 18:17:17 EDT

Boeing is considering not bidding for the Air Force

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[quote]REFILE-UPDATE 2-Boeing cites Iran in tanker battle with EADS

[Ivan]

Boeing being naive... The whole Iranian AF uses Boeing tankers... they even got two experimental 747s left over from the KC-10 program.

And most airbus planes have US made engines, so where is the problem

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Boeing being naive... The whole Iranian AF uses Boeing tankers... they even got two experimental 747s left over from the KC-10 program.

And most airbus planes have US made engines, so where is the problem

They have forgotten that, and shrug it off.

US Congress deals blow to EADS over tankers

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[quote]Boeing Statement on Amendment to the FY2011 National Defense Authorization Act H.R. 5136

With a recorded vote of 410-8, the U.S. House of Representatives today adopted a bipartisan amendment offered by Reps. Jay Inslee (D-Wash.), Rosa DeLauro (D-Conn.), Todd Tiahrt (R-Kan.), Rick Larsen (D-Wash.), Michael Turner (R-Ohio), and Russ Carnahan (D-Mo.) to the fiscal year 2011 National Defense Authorization Act to ensure a level playing field for the KC-X tanker competition. The amendment requires the Department of Defense to consider any unfair competitive advantage that European Aeronautic Defence and Space Co. (EADS) and its subsidiary Airbus have gained from decades of illegal subsidies. The World Trade Organization recently ruled that Airbus received billions of dollars in illegal launch aid from European governments, including almost $5 billion used to develop the A330, EADS

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US lawmaker group, hostile to EADS bid, cites WTO

* 2 congressmen threaten to cut off tanker appropriations

* Pentagon faulted for sticking "head in sand"

* Pentagon says has nothing new to say on matter

By Jim Wolf

WASHINGTON, June 30 (Reuters) - The Pentagon must take into account subsidies that went to Airbus in judging a rematch with Boeing Co (BA.N) for a fat contract to build a new fleet of U.S. Air Force refueling planes, a bipartisan group of lawmakers said.

At least two congressmen, reacting to a World Trade Organization ruling in a long-running subsidy dispute, spoke Wednesday of cutting off funding for the potential $50 billion tanker order if it went to EADS (EAD.PA), Airbus's corporate parent, without factoring in the WTO's findings.

Bids are due July 9 in the Air Force's third try in a decade to replace 179 of its KC-135 tankers, which average about 50 years old.

About a dozen members of the House and Senate, speaking to reporters in an outdoor press conference on the Capitol grounds, voiced concern the Pentagon would ignore the WTO.

"The Defense Department cannot look forward to appropriations for this tanker unless it takes into consideration in the bidding process these illegal subsidies," said Rep. Jay Inslee of Washington state, where Boeing manufactures the 767 widebody it would use for its tanker.

Rep. Todd Tiahrt of Kansas, where Boeing's tankers would undergo final assembly, said such action might take place after the tanker award, which is expected by Nov. 12.

A WTO panel found Airbus had only been able to launch a series of passenger jets -- including the A330 it would modify to become a U.S. tanker -- thanks to banned subsidies from the EU and member states Britain, France, Germany and Spain.

Boeing's political allies contend the Defense Department in evaluating EADS' tanker bid should raise the total consistent with the $5 billion in subsidies found to have gone to develop the A330.

The House of Representatives voted 410 to 8 on May 27 to force the Pentagon to consider illegal subsidies in the contest. It did so in an amendment to a fiscal 2011 defense spending bill. The Senate has not yet acted on the matter.

"The Pentagon can no longer stick its head in the sand over this flagrant violation of rules by Airbus and EU," said Sen. Kit Bond of Missouri, where Boeing's military aircraft arm is headquartered.

Sen. Sam Brownback of Kansas, where the proposed Boeing tanker also would be militarized, told Reuters he would move as soon as possible in the Senate to match the House vote requiring the Pentagon to factor in subsidies.

Geoff Morrell, the Pentagon's press secretary, said by email that he had nothing to add to the Pentagon's oft-stated position on the matter. In the past he has said the Pentagon cannot take punitive action against EADS outside the WTO process, which provides for appeals.

"This is a situation where both sides have claims and counterclaims against each other," he said on March 25.

"We expect the WTO findings will be appealed and the resolution of this matter will take years."

Senator Richard Shelby of Alabama, where EADS would build its version of the tanker, said in a statement: "The tanker competition must move forward as it is currently structured. It would be a significant mistake, with severe consequences to both our economy and trade relations, to attempt to restrict the tanker competition based on this WTO report."

A first confidential report in a countersuit brought by the European Union against U.S. support for Boeing is expected on July 16.

Guy Hicks, a spokesman for EADS' North American arm, said the only beneficiary of the punitive actions being sought by Boeing's allies in Congress would be Boeing.

U.S. forces would lose the right to choose the best tanker, taxpayers would lose the benefits of competition and the 48,000 Americans that EADS says would be employed for its tanker "would be robbed of the opportunity to work in support of U.S. national security," he said in an email.

In 2004, a plan to lease and then buy Boeing 767s, modified as tankers, collapsed in a scandal that sent Boeing's chief financial officer and the Air Force's former No. 2 arms buyer to prison for conflict-of-interest violations. EADS, then partnered with Northrop Grumman Corp (NOC.N), won a 179-plane contract in February 2008.

That deal was canceled after Boeing successfully protested the award, setting the stage for the current competition. In siding with Boeing last time, the Government Accountability Office said the Air Force had made several errors that could have changed the outcome, including failing to properly follow its own judging criteria. (Reporting by Jim Wolf; Editing by Gary Hill)

http://www.reuters.com/article/idUSN3025060320100630

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[quote]Boeing tries the back door

by The Anniston Star Editorial Board
December 9, 2010

You have to give Boeing Co. and its political allies credit. When it comes to securing the $40 billion Air Force refueling tanker contract, they don

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[quote] [size=14][color=#0000ff]Wiki Leaks exposes US-French

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[quote]Boeing to Air Force: Don't mess up

A top Boeing executive warned the Air Force that its decision on who builds the next $35 billion fleet of aerial refueling tankers should be

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[quote]Boeing allies wary of Sarkozy visit

As the Air Force nears a tanker decision, Boeing and EADS are getting sensitive about who's got access to the Oval Office. Boeing's supporters fear today's arrival of French president Nicolas Sarkozy

[C]

[quote]

Likewise, EADS may be ruffled by Obama's pick for chief of staff

[DaveSims]

[quote][quote]

Likewise, EADS may be ruffled by Obama's pick for chief of staff