Airbus partners with Lockheed land U.S. tanker contract

Plane intended plug to shortfall in the Air Force’s mid-air refueling capabilities.

  • By Benjamin Katz Bloomberg
  • Wednesday, December 5, 2018 6:21am
  • Business

By Benjamin Katz / Bloomberg

Airbus is set to renew a long-running battle with Boeing to supply tanker planes to the U.S. Air Force after partnering with American defense giant Lockheed Martin.

The companies said Tuesday they’ve agreed to pitch Airbus’s A330 jetliner-based multi-role tanker transport, or MRTT, to plug a shortfall in the Air Force’s mid-air refueling capabilities and also develop entirely new programs.

The structure of the collaboration is set to be worked out in the new year.

Airbus is once again targeting the U.S. military tanker market after a $35 billion contract to build 179 new planes was controversially handed to Boeing in 2011. The U.S. company’s initial winning bid was overturned amid claims of impropriety and later awarded to its rival, only for Airbus’ own proposal to be blocked by U.S. authorities, with Boeing triumphing in a final decision.

Airbus and Lockheed are teaming up after the Air Force flagged an increase in the number of refueling aircraft required over coming years, in part due to higher utilization of existing planes that led it to issue a formal request for information to the industry in June.

The requirement could lead to the accelerated retirement of the U.S. fleet of KC-135 tankers, a sister model to the Boeing 707 that first flew in the mid 1950s.

Boeing, which has been the sole supplier of aerial refueling planes to the Pentagon since 1948, beat Airbus to the 2011 contract with the KC-46 tanker based on its 767 commercial jet — a model that has since suffered repeated delivery delays.

Airbus’ failed bid was originally made with Northrop Grumman Corp. before the U.S. company pulled out amid legal and political wrangling.

Lockheed Martin, based in Bethesda, Maryland, will contribute its expertise in systems integration, manufacturing and maintenance involving large airlift and tanker aircraft, according to a statement.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

Ben Paul walks through QFC with Nala on Saturday, July 14, 2018 in Everett, Wa. (Olivia Vanni / The Herald)
QFC to close Mill Creek location, part a plan to close similar stores across the nation

A state layoff and closure notice says 76 employees will lose their jobs as a result of the closure.

Logo for news use featuring the municipality of Snohomish in Snohomish County, Washington. 220118
Garbage strike over for now in Lynnwood, Edmonds and Snohomish

Union leaders say strike could return if “fair” negotiations do not happen.

Richard Wong, center, the 777-X wing engineering senior manager, cheers as the first hole is drilled in the 777-8 Freighter wing spar on Monday, July 21, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing starts production of first 777X Freighter

The drilling of a hole in Everett starts a new chapter at Boeing.

Lily Lamoureux stacks Weebly Funko toys in preparation for Funko Friday at Funko Field in Everett on July 12, 2019.  Kevin Clark / The Herald)
Everett-based Funko ousts its CEO after 14 months

The company, known for its toy figures based on pop culture, named Michael Lunsford as its interim CEO.

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

Downtown Edmonds is a dining destination, boasting fresh seafood, Caribbean-inspired sandwiches, artisan bread and more. (Taylor Goebel / The Herald)
Edmonds commission studying parking fees and business tax proposals

Both ideas are under consideration as possible revenue solutions to address a $13M budget shortfall.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.