EADS 'disappointed' US to reopen tanker bidding
AP , Paris: Jun 18 2008
Made Popular Jun 18 2008

Airbus parent European Aeronautic Defence and Space Co. is disappointed by a recommendation that a $35 billion U.S. Air Force tanker contract that it won with an American partner be reopened for bidding, the company’s chief executive said Wednesday.

The U.S. Government Accountability Office, or GAO, on Wednesday upheld Boeing Co.’s protest over the contract and recommended a new competition.

Louis Gallois said EADS thinks the aerial tankers it offered with Northrop Grumman Corp. remain the best option for the Air Force.

“Though we are disappointed, it’s important to recognize that the GAO announcement is an evaluation of the selection process, not the merits of the aircraft,” Gallois said, quoted by a spokesman.

“We will support our partner Northrop and remain confident that the KC-45 is the aircraft best suited to make the Air Force’s critical mission requirements, as demonstrated by four previous competitive selections,” Gallois said.

The Government Accountability Office said it found “a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman.”

The GAO decision is not binding, but it puts heavy pressure on the Air Force to reopen the contract and could help Boeing capture part or all of the award.

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