UPDATE: EADS Submits US Tanker Bid Ahead Of Friday Deadline

8th Jul 2010 19:02

(Adds detail, background.) By David Pearson Of DOW JONES NEWSWIRES European Aeronautic Defence & Space Co. NV (EAD.FR), said Thursday that its U.S. subsidiary EADS North America will submit a bid to be prime contractor for the United States Air Force KC-X aerial refueling tanker. Europe's largest aerospace group said it submitted an 8,800-plus page proposal a day ahead of Friday's deadline for offers. EADS said the proposal details the "unequaled capabilities" of its North America KC-45, which would be built in the U.S. by about 48,000 Americans. The EADS KC-45, based on the commercial aircraft A330, will be assembled in a new manufacturing facility to be built in Mobile, Alabama, which will also produce Airbus commercial freighter aircraft, more than doubling the aircraft production that the tanker alone would bring, EADS said. The contract for up to 179 aircraft is potentially worth $40 billion. The KC-45 will also create and support jobs across a supplier base of more than 200 American companies including General Electric Co.'s (GE) aviation unit; Honeywell International Inc. (HON); United Technologies Corp. (UTX); Eaton Corp. (ETN), Moog Inc. (MOGA) and Rockwell Collins Inc. (COL). If it wins the competition, the KC-45 will be the U.S. military version of EADS' Airbus Military Multi Role Tanker that is based on the A330 wide-bodied airliner. Four governments have passed orders for the MRTT. The first planes will be delivered to the Royal Australian Air Force before the end of this year. EADS won an earlier bid for the tanker contract with U.S. partner Northrop Grumman in 2008, but the contract was cancelled after Boeing Co (BA), which is proposing a tanker version of its 767 airliner, appealed the decision to Congress. EADS Chief Executive Louis Gallois has expressed optimism that EADS will win the tanker contract, as 200 staff members were working on the bid. EADS opted to submit a solo bid after partner Northrop Grumman Corp. (NOC) pulled out earlier this year. It is the third time the U.S. has sought bids for the tanker, making it one of the longest-running and most controversial Pentagon acquisition projects in recent memory. -By David Pearson, Dow Jones Newswires; +331 4017 1751, [email protected] (Nathan Becker in New York contributed to this article.) (END) Dow Jones Newswires July 08, 2010 14:02 ET (18:02 GMT)