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Gates still considering tanker bid extension for EADS

Published 10:16 am Wednesday, March 24, 2010

Defense Secretary Robert Gates made three important points on the U.S. Air Force tanker contest while addressing Congress this morning:

  • The World Trade Organization ruling against Airbus yesterday will have no bearing on the contest. Potential competitor EADS is the parent company of Airbus. Bidder the Boeing Co. brought the WTO complaint against Airbus, which has a counter complaint pending with the WTO.
  • The Pentagon is still considering extending the May 10 deadline to allow EADS to compete. EADS’ partner, Northrop Grumman, dropped out of the contest March 8.
  • The Air Force does not plan to change its tanker requirements from those that were released in February. Northrop had said the requirements favored Boeing’s smaller 767-based tanker. EADS would like those requirements adjusted.

For more on this, read this Reuters report.