US Air Force still on plan with tanker competition

Published: Tue Nov 28th, 2006
Source: Reuters



WASHINGTON, Nov 27 (Reuters) - The U.S. Air Force on Monday said it would stick to plans to pick a winning bidder next summer in a multibillion-dollar competition for new aerial refueling tankers.

The service plans to issue a final request for proposals in the high-stakes competition in December, said spokeswoman Maj. Morshe Araujo.

The new competition, valued at upward of $100 billion over 30 to 40 years, pits Boeing Co (BA.N: Quote, Profile, Research) against a team of Northrop Grumman Corp. (NOC.N: Quote, Profile, Research) and EADS (EAD.PA: Quote, Profile, Research), the majority owner of Airbus and Europe's largest defense contractor.

Air Force Secretary Michael Wynne recently rejected a proposal supported by some Pentagon officials that would have delayed the contract award by two years, said defense analyst Loren Thompson of the Virginia-based Lexington Institute.
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