UNBconnect... - EU warns US over Pentagon tanker contract

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Thursday, 09 February 2012

EU warns US over Pentagon tanker contract

Reported by: UNBconncet
Reported on: March 09, 2010 19:40 PM
Reported in: Business

BRUSSELS, Mar 9 (AP/UNB) - The EU has warned Washington that future defense deals with the U.S. could be affected if a recent Air Force contract for air-refueling tankers proved to have favored a U.S. company.

The European Commission said Tuesday a decision by a European-led consortium not to submit a bid for the Pentagon's contract for next generation tankers is "highly regrettable."

EADS, the parent company of Airbus, had partnered with Northrop Grumman to vie for the project. They pulled their bid on Monday, however, saying the terms of the deal appeared designed to favor a smaller jet offered by rival Boeing Co.

The announcement left Boeing as the only bidder. In 2008, EADS' consortium was awarded the contract for the tanker fleet, but Boeing protested and the deal was annulled later that year.

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