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The stakes were huge - a $35 billion contract
for 179 tanker jets - but in the end European aerospace giant EADS saw
no chance in winning. On Monday, its U.S. partner Northrop Grumman
withdrew its joint bid with EADS to build tankers for the Pentagon
based on an Airbus aircraft model. EADS officials claim the new bidding
process was tailored exclusively for a Boeing win.
After years of intense competition, Airbus parent company EADS
abandoned its bid on Monday for a lucrative U.S. Air Force contract to
build 179 refueling jets at a value of $35 billion. German media had
described it as the "deal of the century" for the European aerospace
and defense giant. The bidding process had put Airbus in head-to-head
competition against U.S. airplane-maker Boeing.
But on Monday, EADS' United States-based partner on the project,
Northrop Grumman, withdrew its bid, saying the call for bids had been
so tightly tailored that Boeing was the only company that could
possibly land the contract. Airbus CEO Thomas Enders has accused the U.S.
government of "prejudice".
The news didn't come as a total surprise. Three months ago, Northrop
Grumman threatened to abandon the bid, saying the company wasn't being
treated fairly. Officials said Boeing had been given access to Airbus'
pricing offer and was able to adjust its own accordingly.
Northrop-Grumman and Airbus originally won the order for the jets in
2008, but under protest from Boeing, the bid was overturned. The
Pentagon, backing government auditors who claimed errors had been made
in the original bid, called for a new bidding process.
"The current contract is clearly tailored to the competition's
smaller and less capable aircraft," EADS' Enders said, according to
German news agency DPA. "The bottom line is obvious: This process is no
longer about the best tanker plane or fair competition." In 2009, U.S.
Defense Secretary Robert Gates said he could only live with a Boeing
offer.
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