Published: Thursday, May 13, 2010
Boeing backers push to penalize EADS' tanker bid
The Boeing Co.'s supporters in Congress have put forth a bill that would penalize the company's rival, EADS, in a $35 billion tanker contest.
"Since the Obama administration has chosen to elevate the interests of European workers above those of American workers, Congress needs to take action and correct the situation," said Rep. Todd Tiahrt, R-Kan.
Boeing and EADS, the parent company of Airbus, are competing for a contract to supply the U.S. Air Force with aerial refueling tankers. Bids are due in July. And Boeing's allies want the Pentagon to take into consideration a trade ruling against Airbus when deciding a winner.
Both House and Senate members from Washington, Kansas, South Carolina and Illinois introduced the "Fair Defense Competition Act" today in Congress. The legislation would require the Pentagon to consider in the tanker contest the illegal subsidies the World Trade Organization recently ruled that Airbus received.
Airbus, however, has a counter complaint pending with the WTO against Boeing.
The Air Force has said it won't consider the WTO ruling due to the pending complaint and because the ruling against Airbus isn't final.
EADS plans to offer the Air Force a tanker based on an Airbus A330 commercial jet and assemble the tanker in Mobile, Ala.
Sen. Richard Shelby, R-Ala., called the proposed legislation ill-advised and shortsighted.
"This legislation will not protect American workers; it will ensure retaliation against them in all industries by our international trading partners," Shelby said.
Boeing will offer a tanker based on its 767 jet, assembled in Everett. Workers in Kansas would install the 767 tanker's military applications. The Chicago-based Boeing also has a manufacturing site in South Carolina.
This is the Air Force's third try to replace its aging fleet of KC-135 tankers. The Pentagon is expected to announce a winner later this year with work beginning on the contract in November.
"Since the Obama administration has chosen to elevate the interests of European workers above those of American workers, Congress needs to take action and correct the situation," said Rep. Todd Tiahrt, R-Kan.
Boeing and EADS, the parent company of Airbus, are competing for a contract to supply the U.S. Air Force with aerial refueling tankers. Bids are due in July. And Boeing's allies want the Pentagon to take into consideration a trade ruling against Airbus when deciding a winner.
Both House and Senate members from Washington, Kansas, South Carolina and Illinois introduced the "Fair Defense Competition Act" today in Congress. The legislation would require the Pentagon to consider in the tanker contest the illegal subsidies the World Trade Organization recently ruled that Airbus received.
Airbus, however, has a counter complaint pending with the WTO against Boeing.
The Air Force has said it won't consider the WTO ruling due to the pending complaint and because the ruling against Airbus isn't final.
EADS plans to offer the Air Force a tanker based on an Airbus A330 commercial jet and assemble the tanker in Mobile, Ala.
Sen. Richard Shelby, R-Ala., called the proposed legislation ill-advised and shortsighted.
"This legislation will not protect American workers; it will ensure retaliation against them in all industries by our international trading partners," Shelby said.
Boeing will offer a tanker based on its 767 jet, assembled in Everett. Workers in Kansas would install the 767 tanker's military applications. The Chicago-based Boeing also has a manufacturing site in South Carolina.
This is the Air Force's third try to replace its aging fleet of KC-135 tankers. The Pentagon is expected to announce a winner later this year with work beginning on the contract in November.
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