17:34 ET<\/span>
\n<\/span><\/p>\nAircraft manufacturer Boeing has won a lucrative contract to provide the US with 179 aerial refuelling tankers.<\/p>\n
Boeing and European rival EADS had been competing for almost a decade for the $35bn (\u00a321.6bn) US Air Force contract.<\/p>\n
During that time both the US and the European Union have reported each other’s companies to the WTO, alleging illegal subsidies.<\/p>\n
And over the past decade two previous attempts to choose a contractor have failed.<\/p>\n
The USAF is replacing its current fleet of KC-135 Stratotankers. tankers, some of which date back to the 1950s.<\/p>\n
Now EADS has 10 days to file a protest with the Government Accountability Office (GAO), the arm of Congress which deals with federal contract disputes, should it object to the decision.<\/p>\n
The GAO would then need to make a decision within 100 days.<\/p>\n
If it stands, the Boeing decision is good news for Washington state and Kansas, where much tanker work will be done.<\/p>\n
Lengthy process<\/span><\/p>\nBoeing and EADS had both been offering variants on existing twin-engined passenger jets: the Boeing 767 and the Airbus A330.<\/p>\n
An original plan was scrapped in 2004. Costing $23.5bn, it would have seen the airforce lease and then buy 100 modified Boeing 767s as tankers.<\/p>\n
Then in early 2008 EADS, partnered with Northrop Grumman Corp, won a 179-plane deal.<\/p>\n
That was then cancelled after government auditors upheld parts of a protest by Boeing.<\/p>\n
Last year Northrop pulled out of the partnership, leaving EADS to bid alone.<\/p>\n
The governors of Alabama, Mississippi and Louisiana had backed EADS’ bid, as it was understood the European firm would have built its tankers in Mobile, Alabama.<\/p>\n<\/p><\/div>\n<\/p>\n
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