EADS close to decision on U.S. tanker bid: sources
April 10, 2010 - 0:0
PARIS (Reuters) -– Airbus parent EADS is close to a decision on bidding for a deal worth up to $50 billion to supply air tankers to the United States backed by a U.S. supplier, sources close to the matter said on Friday.
The European company has been given extra time to decide whether to stay in the race after former partner Northrop Grumman pulled out on the grounds that the rules for the contest favored Boeing, a charge denied by Washington.Sources have said L3-Communications is seen as front-runner to be chosen as a top supplier to install sensitive electronics work if EADS, as observers expect, offers its Airbus A330 airframe against a redesigned Boeing 767.
One source, however, said EADS North America was still examining two alternative offers from Raytheon and the U.S. unit of Britain's BAE Systems. Discussions with the three companies were disclosed by Reuters earlier this week.
EADS was junior partner to Northrop when the transatlantic team won a previous contest to supply the planes in 2008, but the deal was overturned after a protest from Boeing.