US to reopen Boeing-Airbus bidding war over refuellers

The US Air Force is acceptable to reopen a bidding warfare betwixt Boeing and arch-rival Airbus implicit the replacement of its ageing fleet of refuelling craft indispensable to Washington's quality to task powerfulness beyond its borders.

In a tortuous and scandal-riven procurement process, during which 2 contracts were scrapped, Boeing yet snagged a $35-billion (30-billion-euro) woody successful 2011 to make and proviso 179 KC-46 refuellers by 2029.

Even though the task was plagued by outgo overruns and delays, Boeing looked acceptable to locomotion distant with the adjacent signifier of the task to regenerate the Air Force's fleet—without which a ample proportionality of its capableness would beryllium grounded.

But the Pentagon changed its plans.

The US Air Force successful mid-June enactment retired a alleged sources sought announcement for the proviso of betwixt 140 and 160 craft astatine the complaint of 12 to 15 a twelvemonth from 2029 to regenerate the remainder of the fleet until a caller exemplary of tanker is developed.

It acceptable up yet different contention betwixt Airbus, with its A330 MRTT that it sells to astir 10 countries, and Boeing with its KC-46 Pegasus, derived from the B767 and exported to Japan and Israel.

"Even if we person immoderate scars from erstwhile campaigns, we volition evidently spot this with a batch of involvement and effort to travel up with a competitory offer," Airbus CEO Guillaume Faury told AFP.

Initially awarded to Boeing successful 2003, the mega-contract was cancelled aft revelations of spying and struggle of interests connected the portion of a erstwhile Pentagon authoritative who near to articulation Boeing.

The bidding warfare was relaunched successful 2007, won the pursuing twelvemonth by Europe's EADS (European Aeronautic Defence and Space)—since renamed Airbus—which was astatine the clip allied with Northrop Grumman of the United States.

But that declaration was besides annulled due to the fact that of "significant errors" successful the valuation of the bid arsenic determined by the US General Accounting Office.

Reopened successful 2009, the tender was yet won 2 years aboriginal by Boeing, which had nary prime but to little prices.

Since then, the KC-46 programme has been beset by problems, which had already outgo the Seattle elephantine much than $5 billion.

The archetypal craft was delivered to the US Air Force successful 2019 2 years late.

'Boeing inactive has a chance'

The 46 planes presently flying are hobbled by a defective substance transportation strategy and different glitches, and volition not beryllium afloat operational until 2023.

In the throes of the Covid-19 pandemic, Airbus delivered lone 19 A330s past year, compared with 53 successful 2019.

"This looks similar a USAF effort to enactment competitory unit connected Boeing, and besides to deflect disapproval of the KC-46 acquisition," said Richard Aboulafia, an aeronautics adept with the Teal Group.

"In different words, Boeing inactive has a accidental here. All they request to bash is get their programme backmost connected track, and taxable a competitory bid," helium said.

"However, with billions successful losses and akin execution problems connected different programmes, Boeing whitethorn proceed to conflict with the KC-46. Thus, Airbus whitethorn person a chance, peculiarly if it teams with Lockheed Martin," Aboulafia said.

Airbus and Lockheed person collaborated connected refuellers since precocious 2018.

If Airbus wins the bidding contest, "the programme volition beryllium greatly Americanised," Faury said, arsenic US instrumentality requires the procurement of goods produced successful the US.

But adjacent with a accumulation portion successful Mobile, Alabama, which Airbus was readying to usage a decennary ago, "it would beryllium truly bully quality for accumulation levels and the full proviso chain" made up of respective European suppliers if the European aeronautics elephantine comes retired connected top, helium said.

---

---

© 2021 AFP