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Fri, Feb 26, 2010

Boeing, Northrop Studying Tanker RFP

Boeing "Disappointed" Some Issues Not Addressed, Northrop Withholding Comment

Both Boeing and Northrop Grumman say they have received the final RFP for the Air Force KC-X tanker program, with neither company saying they are particularly pleased with the document that was released Wednesday. 

Boeing 767 Tanker

In a statement, Boeing indicated that it was hoping the RFP would address concerns it has about subsidies provided by European governments for Airbus. "Boeing has begun the process of closely studying the details of the KC-X Tanker final RFP," Jean Chamberlin, vice president and general manager, Boeing USAF Tanker Program, said in the statement. "Today's release of the final RFP is an important milestone for our Air Force customer. Not only does it mean that the KC-X competition can proceed, it also is a strong signal that America is moving forward on replacing its air refueling capability -- a critical enabler for projecting power and protecting this nation."

"We've said consistently that it is up to the Air Force to determine the KC-X requirements for a new generation of tankers. It's our responsibility to respond to those requirements," the statement continued. "While we appreciated the open dialogue with the Air Force throughout this process, we are disappointed that the RFP does not address some of our key concerns, including Airbus' unfair competitive advantage derived from subsidies from its sponsor European governments -- subsidies that the World Trade Organization has found to be illegal and harmful to U.S. workers and industry -- and how fuel and military-construction costs over the life of the tankers will be factored into consideration of the competing bids. We will review the RFP in its entirety and in detail before offering further assessment."

Airbus A330 Tanker

The international news service AFP reports that Northrop Grumman, EADS' U.S. partner in the bidding process, is "analyzing" the RFP. But Northrop spokesman Randy Belote said the companies would "defer further public comments until its review of the document has been completed."

FMI: www.dod.mil, www.boeing.com, www.northropgrumman.com

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