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<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • Boeing gets major boost in Air Force tanker battle 6/19/08 • Everett 767 workers hopeful after GAO weighs in on tanker 6/19/08 • State asks for bids for new ferries for the Whidbey Island to Port Townsend run 9/11/08 • Shipbuilder can't sue state over ferry bids 8/15/08 • Ferries could be sold for scrap 6/4/08 • State makes deal for Keystone-Port Townsend ferries 4/28/08 • State may not seek new bids for Keystone-Port Townsend ferry 4/25/08 • State to solicit new bids on a 50-car ferry 4/21/08   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Thursday, June 19, 2008 Alabama officials hope Air Force tanker award stands Lawmakers still expect the tanker to be put together at the plant in Mobile. Associated Press WASHINGTON -- Alabama officials expressed optimism Wednesday that the state will still be the U.S. assembly hub for new Air Force refueling tankers even after the Government Accountability Office upheld a protest that could delay or overturn the contract. The GAO ruling raised significant questions about the Air Force's decision in February to award the work to Northrop Grumman Corp. and European Aeronautic Defence and Space Co., which plan to assemble the planes at Mobile's Brookley Field Industrial Complex. But just minutes after the decision was announced, Northrop Grumman sent out a press release reiterating its plans to hold a June 28 groundbreaking at the Alabama site. Elected officials said they would continue fighting for the $600 million plant, which could see some 1,500 jobs. "I am obviously deeply disappointed and surprised," Rep. Jo Bonner, a Republican from Mobile, said of the decision. But, he added: "A couple of things seem clear: The Air Force desperately needs a new tanker to replace a fleet nearing 50 years old, and the Air Force still believes the Northrop Grumman/EADS tanker best meets its needs." Gov. Bob Riley, Mobile Mayor Sam Jones and others offered similar reaction. "The most important thing that I saw in this was that they were not questioning the merits of the aircraft," Jones said. "It seemed to me they were saying some of the wording did not clearly convey information to the bidders ... we'll just have to see what the Air Force response is to that." The contract, which has spawned a fierce political battle on Capitol Hill, pits the international Northrop Grumman/EADS team against the U.S.-based Boeing Co. The deal is worth $30 billion to $40 billion over 10 to 15 years and could be even more lucrative -- it is the first of three deals to replace the Air Force's entire fleet of nearly 600 tankers. EADS, parent of Airbus, already has opened an engineering facility at Brookley in anticipation of assembling the tanker. To lure the projects, state and local government agencies offered the companies a $110 million package of incentives, including tax breaks and cash to help with plant construction. The incentives are contingent on Mobile's winning the tanker. READER COMMENTS Log in or register to post new comment | Log out Subsidies???? To lure the projects, state and local government agencies offered the companies a $110 million package of incentives, including tax breaks and cash to help with plant construction. The incentives are contingent on Mobile's winning the tanker. So, let me get this straight......Airbus is complaining to the WTO that Boeing receives unfair subsidies from the State of Washington in the form of tax breaks, cash, etc., but they don't mind if the state of alabama does the same thing for northrop gruman??? Pot, Kettle, Black.......Huh??? J Marchant | Jun 19, 2008 2:08 pm | 0 replies | View all | Post reply | Request removal

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