U.S. Congress roiled by Air Force tanker decision
A political backlash erupted on Monday over a decision by the U.S. Air Force to pass over U.S. aerospace giant Boeing Co and award a $35 billion (17 billion pound) aerial refuelling tanker contract to a partnership that includes the European parent of Airbus.
Northrop-EADS beats Boeing for U.S. tankerU.S. Speaker of the House Nancy Pelosi, a California Democrat, said the deal posed "serious questions that Congress must examine thoroughly."
Labour unions seized on the issue, raising questions about Airbus parent EADS and criticizing the Air Force for not considering U.S. jobs in its decision.
Gabriela Lemus, executive director of the AFL-CIO's Labor Council for Latin American Advancement, said EADS had received subsidies for years.
"If this is allowed to stand, the Department of Defence will have declared open season on American aerospace jobs," Lemus said.
EADS - with major manufacturing facilities in France and Germany - teamed up with U.S. aerospace group Northrop Grumman to outbid Boeing for the job, which will bring with it thousands of high-paying jobs over many years.
The Air Force plans to buy 179 aircraft over 15 years to replace aging KC-135 tankers, which were built by Boeing. Tankers refuel fighter jets and other warplanes in midair.
Overturning the lucrative contract would not be easy, especially because the Air Force was determined to follow its contract procedures to the letter, and because Northrop clearly outscored Boeing on major technical evaluation criteria, defence analyst Loren Thompson said on Monday.
The Air Force's handling of the deal was monitored by an independent team of military and civilian analysts.
Congress scrapped a previous Air Force plan to lease 100 Boeing 767 tankers after a former top Air Force official went to jail for negotiating a senior job with Boeing while still overseeing the deal. The scandal emerged during a probe by Sen. John McCain of Arizona, the likely Republican presidential nominee.
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