No decision from EADS on U.S. tanker bid

Published 6:42 am Monday, April 12, 2010

EADS’ president Louis Gallois said Monday that his company has not decided yet whether it will bid for the U.S. Air Force tanker contract.

In an interview with a European television station, Gallois said EADS is in talks with L-3 Communications and Raytheon to see about partnering for the $35 billion tanker contract.

The Air Force has said it will extend the May 10 deadline by 60 days, or until July 9, to allow EADS to participate should the European company indicate an interest. EADS’ original partner for the contract to supply the Air Force with 179 aerial refueling tankers was Northrop Grumman, which bowed out of the competition in March saying the contest favors the Boeing Co.

After the Air Force’s extension announcement, Boeing said it is reviewing its options regarding the competition. Analysts say Boeing could protest the extension to government auditors or take legal action.

The Air Force has made two previous attempts to replace its Eisenhower-era KC-135 tankers.