With an award looming in the Air Force tanker contest, two governors pleaded the Boeing Co.’s case in a letter to President Barack Obama.
“We urge you to instruct the Department of Defense and the Air Force to factor into the tanker evaluation process the illegal subsidies that unfairly lower the price of every airframe that Airbus sells,” wrote Chris Gregoire and Sam Brownback, governors of Washington and Kansas, respectively.
Boeing would build and modify its 767-based tanker in Washington and Kansas if it wins a contest to supply the Air Force with 179 aerial refueling tankers. Boeing’s competitor, EADS, is the parent company of Toulouse, France-based Airbus.
Boeing and Airbus have gone rounds in front of the World Trade Organization over illegal subsidies. Both allege the other unfairly received government money that offset the cost of developing new aircraft. Because the WTO’s rulings in those cases are not final, the U.S. Air Force has said it won’t take the subsidies issue into account when determining the winner of the $35 billion contest.
“The U.S. aerospace industry is the finest in the world and is not afraid of competition. But competition must take place on a level playing field, and right now, the field is tilted in favor of EADS/Airbus,” Gregoire and Brownback wrote.
Last year, Gregoire started a coalition of governors who support Boeing’s efforts in winning the tanker contest. Brownback was named co-chair of the coalition today.
Read the governors’ letter to Obama here.
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