EADS Reacts to Tanker Decision

Following the Air Force’s decision to issue the $35 billion KC-X tanker deal to Boeing (NYSE: BA), EADS North America officials expressed disappointment over the outcome.

“This is certainly a disappointing turn of events, and we look forward to discussing with the Air Force how it arrived at this conclusion, ” sEADS North America Chairman Ralph D. Crosby, Jr. said “For seven years our goal has been to provide the greatest capability to our men and women in uniform, and to create American jobs by building the KC-45 here in the U.S. We remain committed to those objectives.”

Had it been selected, EADS North America would have built the KC-45 at a new production facility in Mobile, Ala.

“With a program of such complexity, our review of today’s decision will take some time, ” Crosby said. “There are more than 48, 000 Americans who are eager to build the KC-45 here in the U.S., and we owe it to them to conduct a thorough analysis.”

The Air Force originally awarded the contract to an EADS-Northrop Grumman team in 2008, but the move was overturned following a successful protest by Boeing.

“Though we had hoped for a different outcome, it’s important to remember that this is one business opportunity among many for EADS in the United States, ” CEO of EADS North America Sean O’Keefe. “We have exceptional technology and highly capable platforms that will be invaluable to U.S. military forces, now and in the future. We have learned much through this process, developed a world-class organization in the U.S. and have earned the respect of the Department of Defense. Our commitment to our U.S. customers is stronger than ever.”

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