The Air Force would be forced to consider an international trade ruling in its tanker contest between Boeing and EADS, should a bill that’s being circulated become law.
The legislation, backed by the Boeing Co., essentially would penalize EADS in its bid for a contract worth at least $35 billion to supply the Air Force with aerial refueling tankers. Boeing and EADS are expected to submit bids in July.
The legislation could be introduced in Congress as soon as Thursday, according to Reuters.
The World Trade Organization recently found that Airbus received illegal “launch aid” for new aircraft programs like the A330 jet, which EADS would use as its tanker platform. EADS is the parent company of Airbus. The European jet maker has a counter claim against Boeing pending with the WTO.
The Pentagon has said it will not consider the WTO findings, giving that the ruling still can be appealed by Airbus.
Boeing plans to offer the Air Force a tanker based on its Everett-assembled 767 jet. The company is worried about competing against EADS, given the launch aide for the A330, according to an e-mail obtained by Reuters from Boeing’s legislative affairs director Kevin Rozelsky.
“We’re very concerned that the illegal European subsidies are going to allow Airbus to underbid Boeing significantly, and then in a fixed-price contract, they win the day,” he wrote.
The Air Force recently extended the deadline for tanker bids by 60 days to allow EADS time to compete for the lucrative contract supplying 179 tankers after EADS’ U.S.-based partner, Northrop Grumman, dropped out.
The Air Force plans to announce the contract winner later this year after two previous attempts, dragging on over nearly a decade, to replace its Eisenhower-era KC-135 tankers.
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