Blame John Sydney McCain: Air tanker deal provokes US row

BBC

Boeing's loss of a $40bn contract to build a new in-flight refuelling aircraft for the US military has drawn angry protests in Congress.

Lawmakers from Washington state and Kansas, which have big Boeing plants, voiced "outrage" that it had gone to a consortium including Europe's Airbus.

The planes will be assembled in Alabama but constructed largely in Europe.

Boeing has said it is awaiting an explanation from the military before deciding whether or not to appeal.

The new aircraft, named the KC-45A by the US Air Force, is based on the Airbus A330 and will be manufactured in partnership with US defence firm Northrop Grumman.

Its job will be to refuel the vast array of US warplanes and the contract is worth in the region of $40bn over 15 years.

It is a huge blow for Boeing, the BBC's Vincent Dowd reports from Washington.

America has around two-thirds of all such aircraft in use anywhere, and a senior figure in the company said recently if it lost this contract it could be out of the refuelling market totally for years. .........


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Boeing has lost a $40 billion refueling tanker contract to France's Airbus. 9000 JOBS LOST

http://seattletimes.nwsource.com

The Boeing loss means that the 767 assembly line in Everett will wind to a close around 2012 when the current commercial orders run out.

No layoffs are likely as workers will transfer to other programs. But Washington State has lost out on the chance to add as many as 9,000 jobs.

Until now, Boeing has had a monopoly on the supply of large air tankers to the U.S. military. But Northrop Grumman, in partnership with Airbus parent EADS, will build the next generation tankers using a modified Airbus A330 instead of the Everett-built 767 Boeing had put forward.

The deal, worth about $40 billion over two decades, is for the supply and maintenance of 179 tankers replacing old Boeing-built KC-135 airplanes.

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In its quest for new tankers, the Air Force in 2002 negotiated a $23 billion deal with Boeing for a hundred 767 tankers, but it quickly came under fire in Congress as a financial handout for Boeing. The critics were led by Sen. John McCain of Arizona, who was on the Senate Armed Services Committee at the time and is now the likely Republican presidential nominee........