Bill could let Airbus join Air Force bid

Posted on: Jan. 4th, 2006 || Source: thenewstribune.com | E-mail Article | Print Article

Bill could let Airbus join Air Force bid

WASHINGTON – A defense bill approved by Congress would allow an open competition for a multibillion dollar contract to supply refueling tankers for the Air Force.

In other words, Airbus will be allowed to bid for the contract which The Boeing Co. originally won in 2004 before it was taken away following an ethics scandal.

The bill, which President Bush is expected to sign, would reverse a House-approved measure making it illegal for the Pentagon to buy military equipment from Airbus’ European parent company. The House bill would have helped Boeing regain the lucrative tanker aircraft contract.

The House bill would have barred the Pentagon from purchasing goods and services from foreign companies that receive government subsidies.

While no companies were named, lawmakers said the amendment was aimed at disqualifying the European Aeronautic Defence and Space Co. from bidding on the tanker contract.

Airbus has long received subsidies from European governments, sparking tension between U.S. and European officials.

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