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Jan, 15, 2008

TRANSPORTATION

State lawmakers slam Airbus tanker proposal

Boeing downplays bid to win military contract

`

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LES BLUMENTHAL
THE BELLINGHAM HERALD

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WASHINGTON, D.C. — Washington state lawmakers were highly skeptical Monday over the announcement that Airbus would build an airplane manufacturing plant in Alabama, dismissing it as a last-minute ploy by the European company to appear American and win a $40 billion Air Force aerial tanker contract over rival Boeing.

“The reality is they are a European company which has received subsidies from European governments,” said Sen. Patty Murray, D-Wash.

Rep. Norm Dicks, D-Wash., used harsher language.

“I think this is a desperate ploy,” Dicks said. “You can never trust these guys.”

Airbus’ parent company, EADS, said it would build a plant to produce A330s in Mobile, Ala., if it is awarded the tanker contract. EADS has partnered with Northrop Grumman on a tanker bid that would use the A330 as its airframe. A330s are currently built in France, but EADS said it would start assembling the tanker version and a civilian freighter version of the plane in Mobile if it wins.

Boeing would use the 767, built in Everett, for its tanker airframe.

“Airbus could make this plane at the North Pole if they want to, but at the end of the day Boeing will deliver the tanker the Air Force needs,” said Rep. Rick Larsen, D-Everett, whose district includes Whatcom County.

The initial contract will be for 179 tankers worth about $40 billion, though with future orders the contract eventually could be worth $100 billion. The Air Force wants to replace its current fleet of KC-135 tankers that average 44 years old.

The contract is now expected to be awarded in late February.

Originally, the Air Force agreed to lease Boeing tankers. But that 2004 deal collapsed amid a procurement scandal.

Since then, EADS has aggressively pursued the tanker contract.

“This significant investment would effectively transform EADS and Airbus into a second U.S.-based producer and exporter of large commercial aircraft,” Thomas Enders, president and chief executive of Airbus, said in announcing the company’s plans Monday.

Boeing dismissed the Airbus announcement as an “11th hour” effort by the Europeans to win the tanker contract.

“It is important to note that moving an entire production line from France adds time and complexity to production,” Boeing said in a brief statement. “Whether or not the governments that control EADS will permit such a move remains to be seen.”

Les Blumenthal covers issues about Washington state from the McClatchy Washington, D.C., bureau. He can be reached at lblumenthal@mcclatchydc.com.



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