Airbus Leaning Toward Not Appealing Tanker Decision

According to Reuters, EADS, parent company of Airbus, will likely decide by tomorrow whether it will appeal the Pentagon’s decision to award Boeing a $35 billion contract to replace it aerial refueling tanker fleet.

According to an unnamed source in the article, Airbus will likely not appeal, officially ending the ten-year long competition between Airbus and Boeing over the contract which calls for 179 new tankers (Boeing will be using a modified 767 for the tanker while Airbus was offering a modified A330).

The deadline to appeal is March 7th but Airbus seems ready to concede defeat and move on to future projects. Although Airbus did not win the contract, its mere presence in the bid increased competititon which helped lower prices leading many to believe that the U.S. government will encourage bids from Airbus and possibly other foreign companies in the future. Despite the snub, it is widely believed that Airbus will continue to bid for future U.S. military contracts considering how lucratice such contracts can be and the fact that the company nearly won the tanker contract in the first place.

 

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This entry was posted in 767, A330, AIRBUS, BOEING, ORDERS/DELIVERIES and tagged , , , , . Bookmark the permalink.

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