EADS urges Northrop to bid on tanker – report

Published 10:49 am Tuesday, March 2, 2010

Northrop Grumman is edging closer to a decision on whether it will bid on a $35 billion aerial refueling tanker deal with the U.S. Air Force.

Its partner for the contract, EADS, is encouraging Northrop to bid, an unnamed source tells Reuters.

Northrop officials had said the duo wouldn’t bid unless the Air Force made significant revisions to its tanker requirements when it released the final rules last week. The Air Force made only minor adjustments.

Northrop and EADS are competing against the Boeing Co. for the chance to replace 179 Air Force tankers. Lawmakers and analysts agree the Air Force’s final requirements favor Boeing’s KC-767 tanker, which would be built here in Everett.

Pentagon officials said last week that they have an alternative plan ready should Northrop drop out of the competition. They would prefer, however, to have two bids. And they urged Northrop to make a decision quickly whether it will participate.