EADS to submit tanker bid without U.S. partner – Reuters report

Published 12:59 pm Monday, April 19, 2010

EADS likely will submit a bid for the Air Force tanker contract without the benefit of a U.S.-based partner.

Reuters is reporting that the European company could make an announcement tomorrow about its intent to bid for the $35 billion tanker contract. EADS will challenge the Boeing Co. and its 767-based tanker for the lucrative deal.

EADS’ original partner, Northrop Grumman, bowed out of the contest in March, saying the Air Force had slanted the competition in Boeing’s favor. The Pentagon has said it will extend the May 10 deadline for bids to July 9, should EADS indicate that it will submit a proposal.

EADS had been in talks with aerospace companies like BAE, Raytheon and L-3 Communications. Analysts had seen L-3 as the major contender for a partnership. EADS will still use an array of U.S. suppliers for its tanker bid.

Boeing has said it will explore its options — likely including legal options or a protest to government auditors — should the Air Force grant the extension.

This is the Air Force’s third attempt at replacing its KC-135 tankers.